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Trump Accounts begin taking contributions, with rules shifting at age 18
Contributions started July 4, and eligibility includes a one-time $1,000 federal contribution for U.S. citizen children born from 2025 through 2028.
Yahoo Finance reports that Trump Accounts officially went live this summer, creating a new tax-advantaged investing option for children under age 18. The accounts began accepting contributions on July 4 under President Donald Trump’s 2025 One Big Beautiful Bill Act, and parents, guardians, or other authorized adults can open an account for eligible children with a Social Security number.
The outlet says U.S. citizen children born from 2025 through 2028 are also eligible for a one-time $1,000 contribution from the federal government. It also notes that families and employers can generally contribute up to $5,000 per year, including as much as $2,500 from an employer, with the early contributions invested in low-cost mutual funds or ETFs that track U.S. stock indexes.
Yahoo Finance adds that the account’s tax treatment differs from a Roth IRA, with family contributions generally made with after-tax dollars while investment earnings grow tax-deferred. It also says special rules largely disappear beginning Jan. 1 of the year the account holder turns 18, based on IRS guidance.
The piece also highlights criticism from personal finance personality Dave Ramsey, who called the accounts a political stunt and questioned whether they are as beneficial as the original Roth, citing concerns including limited investment choices and restrictions on accessing funds before adulthood. It further states that the tax breaks expire after 2028.