US President Donald Trump said at the Trump Account Summit in Washington last week that 'with every modest contribution, Trump accounts should reach at least $50,000 (£36,524) in value' by the time children turn 18. 'With slightly greater contributions, the typical account will grow to $100,000, $200,000 and can even exceed $300,000 per child,' he added.
House Press Secretary Karoline Leavitt said a Trump account could reach $1.1 million (£803,539) by the time a child turns 28 if parents make the maximum possible contributions. Official projections show that, with no contributions other than the Treasury's $1,000, account balances could grow to $6,000 (£4,382) by age 18 and $243,000 (£177,509) by age 55.
The tax-deferred wealth-building tool for children, known as 530A accounts, includes a $1,000 (£730) contribution from the US Treasury for children born between 2025 and 2028. Funds in these accounts cannot be accessed until age 18 but can later be used for qualified expenses such as education, a first home purchase, or starting a business.
Major companies have pledged to match the Treasury's initial contribution for the children of employees, while philanthropists and investors, including Michael and Susan Dell and Ray Dalio, plan additional donations for qualifying families. Even Altimeter Capital CEO Brad Gerstner and artist Nicki Minaj have pledged contributions to Trump accounts. Parents can contribute up to $5,000 (£3,652) annually to Trump accounts until their children turn 18, while employers can deposit $2,500 (£1,826) per year.
600,000 US Families Sign Up for Trump Accounts
US Treasury Secretary Scott Bessent said in a recent interview with CNBC that 600,000 US families have enrolled in Trump accounts since the official start of the tax season on Jan. 26. Tax filers can open a Trump account when they submit their 2025 tax return by making elections on IRS Form 4547.
'Low-income families, in particular, tend to file early in the tax season because they rely on tax refunds,' said Jason Ewas of the Aspen Institute Financial Security Program. 'There was a lot of talk this year about refunds being bigger, so that figure seems within the realm of possibility.'
US families can also sign up using the Trumpaccounts.gov online tool, which is expected to be available in mid-2026. Contributions will not begin until July. The Internal Revenue Service (IRS) stated in December that the 'fastest, safest and easiest way to make [Trump account] elections' is through Form 4547.
Once families apply, the Treasury will contact them to activate accounts through an authentication process, scheduled to begin in May. There are no income requirements, and all families are eligible for the Treasury's initial $1,000 contribution.
Trump accounts will primarily invest in broad US equity index funds, such as mutual or exchange-traded funds (ETFs), with a maximum annual fee of 0.1%. Experts advise that families should also consider other investment options for their children, including 529 college savings plans.
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Originally published on IBTimes UK
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