U.S. Launches $1,000 Trump Accounts for Babies Born 2025-2028

3 articles · Updated · Fortune · Jul 18

July 4 marked the start of the new program, with the U.S. government depositing $1,000 into tax-deferred Trump Account IRAs for children born from 2025 through 2028 once parents or guardians apply.
The accounts are designed as retirement starters rather than college funds: money is invested in a State Street S&P 500 index fund, and children do not need earned income to receive contributions.
Annual private contributions are capped at $5,000 from family and $2,500 from employers or charities; Michael and Susan Dell also pledged $250 for the first 25 million eligible children under 10 in lower-income areas.
The program comes with limits that may curb its appeal: no withdrawals before age 18, taxes on many distributions, no tax deduction for contributions, and full control shifting to the child at 18.
Robinhood was selected earlier to help administer the accounts, which supporters say could lift a U.S. personal saving rate that has fallen from above 13% in 1975 to under 4% by 2025.