What’s a “Trump Account”?

It’s like a piggy bank the government may help fill, except instead of coins in a pig, it’s dollars in the stock market. And instead of smashing it open on their 10th birthday, kids can’t touch it until they’re 18 (adulthood), and can’t touch it penalty-free until they’re 59 ½ (retirement age).

In other words, it’s a retirement account for kids under 18.

They were created as part of the One Big Beautiful Bill Act and opened for business on July 4, 2026, under the official name 530A IRA.

Here are the need-to-knows:

• Who’s eligible? Any child under 18 with a Social Security number (no income requirements or strings attached). U.S. citizens born between 2025 and 2028 can receive a one-time $1,000 “Happy Birthday” deposit from Uncle Sam to get them started… with an important asterisk: an eligible adult has to opt in to get the $$.
• Can kids touch the money? Nope. Once it’s in, it’s locked up tight until they turn 18.
• How much money can go in? Families, friends, employers, and guardians can contribute a combined $5,000/year.
• What are the tax advantages? It’s a tax-deferred account. Contributions are made in after-tax dollars, and any growth in the account is taxed as ordinary income upon withdrawal.
• What happens when they turn 18? The new adult takes the wheel, and the account converts to a traditional IRA. Withdrawals before age 59 ½ are subject to a 10% early withdrawal penalty (with exceptions for higher education expenses, a first-time home purchase, and other special situations).
• How are the funds invested? While the child is a minor, investments are limited to low-cost U.S. stock index funds and ETFs (e.g., the S&P 500) to keep costs down and spread risk. After the account converts to a traditional IRA, the owner gets access to a wider range of investments, including individual stocks.

To register or read more, visit here.