Trump Accounts For Children, What You Need To Know

by CrownHeights.info

As families across Crown Heights and the wider Chabad world continue to expand their families, a newly created federal savings program is drawing significant attention. Known as Trump Accounts, the initiative is designed to give children born after January 1, 2025, a financial head start through a government-seeded, long-term investment account that grows over time and becomes accessible when the child reaches adulthood.

Trump Accounts are government-authorized, tax-advantaged investment accounts established under legislation signed into law in 2025. The goal of the program is to encourage early savings and long-term investing by ensuring that every eligible child begins life with an initial financial foundation. For children who qualify, the federal government provides a one-time $1,000 seed deposit, which is invested and allowed to grow over many years through the financial markets.

Eligibility for the government contribution is limited to children who are born between January 1, 2025, and December 31, 2028, are U.S. citizens, and have a valid Social Security number. While Trump Accounts may be opened for any child under the age of 18, only those born during the eligible years receive the $1,000 government deposit. Children born before 2025 can still benefit from the account structure itself, but without the federal seed money.

Once established, Trump Accounts can receive additional contributions from parents, relatives, friends, employers, and even charitable organizations. Annual contributions are capped at $5,000 per child, not including the government’s initial $1,000 deposit. Employers are permitted to contribute up to $2,500 per year toward an employee’s child’s account, though employer contributions count toward the overall annual limit. Funds deposited into the account must be invested in diversified, low-cost investment options such as index funds that track the U.S. stock market, with the intent of promoting steady, long-term growth rather than short-term speculation.

The eventual value of a Trump Account depends largely on market performance and how much is contributed over time. Even without additional deposits, financial projections show that a $1,000 investment made at birth could grow into several thousand dollars by the time the child turns 18 through compound growth alone. With consistent annual contributions, however, the numbers become far more significant. Federal projections estimate that families who contribute the maximum amount each year, assuming long-term average market returns, could see account balances reach hundreds of thousands of dollars by age 18, with the potential to exceed $1 million by a child’s late twenties. These figures are projections only and depend on consistent contributions and favorable market conditions.

Withdrawals from Trump Accounts are generally not permitted until the child turns 18, ensuring that the funds remain invested for long-term purposes such as education, home ownership, or other major life expenses. Because the funds are locked until adulthood, the accounts are not intended to help with day-to-day child-rearing costs, but rather to serve as a future financial foundation.

Enrollment for Trump Accounts is expected to begin around early July 2026. Parents or legal guardians will be able to sign up through a dedicated federal online portal or by filing the appropriate IRS election form, which can also be submitted alongside a federal tax return. Once enrollment is completed, the U.S. Treasury or its designated financial administrator will establish the account and deposit the government’s $1,000 contribution for eligible children.

In addition to the federal benefit, some private employers and philanthropic organizations have announced matching or supplemental contributions, further increasing the potential value of these accounts for participating families. At the same time, financial experts caution that while Trump Accounts can be a valuable tool, they are most beneficial for families who are able to add regular contributions over time. As with any market-based investment, returns are not guaranteed.

To sign up a child for a Trump Account: Click Here