Since there's so much misinformation on Trump Accounts, here's what you need to know:
-Newborns born 2025-2028 get a $1,000 government seed that compounds until they're 18, at which time the account becomes theirs.
-Kids age 10 and under born BEFORE 2025 get $250 from Michael and Susan Dell's private donation (not government money) if they live in ZIP codes where median income is below $150,000.
-Kids 11 may qualify for the Dell $250 if funds remain after initial sign-ups.
-Kids who get the $1,000 government seed are NOT eligible for the Dell $250.
-ANY child under 18 can have a Trump Account opened for them, but only kids born 2025-2028 get the government seed.
-Parents, grandparents, relatives, friends, employers, and charities can all contribute to the accounts along the way.
-Individuals can contribute up to $5,000/year total per child (this includes up to $2,500 from employers through cafeteria plans). There are some great financial planning strategies around this.
-Charitable contributions (like the Dell's $250) don't count toward the $5,000 limit.
-To register and get the $1,000 government seed, you need to fill out IRS Form 4547.
-The form can be filed with your 2025 tax return, or online at
trumpaccounts.gov starting mid-2026.
-If you have a newborn born in 2025-2028, check box III on Form 4547 to claim the pilot program contribution.
-Accounts go live July 5, 2026. The $1,000 seed gets deposited then and is automatically invested in low-cost U.S. stock index funds.
-No withdrawals allowed until age 18, then normal IRA rules apply.
-BONUS STRATEGY: Convert the account to a Roth IRA when your child turns 18. They'll likely be in a very low tax bracket, so you pay minimal taxes now for decades of tax-free growth.