By Leada Gore
al.com
(TNS)
More than 4 million children have signed up for the savings plans known as “Trump Accounts,” with a quarter of them eligible for seed money from the federal government, the Internal Revenue Service announced this week.
Trump Accounts allow parents, guardians and others to contribute to a new form of individual retirement accounts for eligible minors. To be eligible, the child must be 18 or under for the year when the account is established and have a valid Social Security number.
A pilot program through the federal government is offering $1,000 in seed money for children born between Jan. 1, 2025 and Dec. 31, 2028. There are no income caps on who is eligible for the $1,000.
One million of the 4 million who have applied for the accounts were eligible for the $1,000 contribution, according to the IRS.
“The IRS has been working closely with the Treasury Department to make the election process as simple and easy as possible by permitting taxpayers to fill out a one-page form when they file their tax return,” IRS Chief Executive Officer Frank J. Bisignano said in a statement. “Families with eligible children born between 2025 and 2028 just need to check the box on a form to stake their claim for the $1,000 contribution. It’s that simple.”
The document establishing the account (you can access it here) can be submitted with individual tax returns.
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Contributions to the accounts can be made starting July 4. All eligible children may receive deposits from parents, relatives, friends, employers, state governments, philanthropic organizations and individuals, subject to an annual limit of $5,000 per account.
Employers can make contributions of up to $2,500 a year, which counts towards the overall $5,000 limit.
The funds will be invested in a portfolio of low-cost index funds. If fully funded and left untouched, it could grow to as much as $1.9 million by age 28, the White House projects.
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©2026 Advance Local Media LLC. Visit al.com. Distributed by Tribune Content Agency LLC.
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