The Treasury Department has officially rolled out the Trump Accounts app. Here is what to know about the accounts and how to get the app.
The Treasury announced the rollout on Thursday, with the Trump Accounts app hitting app stores for both iOS and Android. The app will allow parents and beneficiaries to access the accounts after the program’s launch on July 4.
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Trump Accounts are new tax-deferred investment savings accounts designed for children, to which parents, family members, and others can contribute money. The funds can be tapped into after the beneficiary turns 18.
The program, which was created as part of last year’s One Big Beautiful Bill Act, is designed to get young people interested in investing and to help grow financial literacy in the United States. Treasury Secretary Scott Bessent said Thursday they are designed to “build long-term financial strength from day one.”
“By putting easy access to Trump Accounts directly in the hands of parents and young Americans, we are helping to ensure that America’s youth are included in this new era of economic participation,” Bessent said in a statement.
Who is eligible?
Trump Accounts can be opened for any child under the age of 18 who has a valid Social Security number.
But what has gotten even more attention is that the government will be putting money in Trump Accounts created for newborns in the next few years.
For babies born between Jan. 1 of this year and Dec. 31, 2028, the government will deposit $1,000 into each Trump Account. That $1,000 cannot be touched until the beneficiary turns 18.
Andrew Biggs, a senior fellow at the American Enterprise Institute, told the Washington Examiner the idea is that the $1,000 is an incentive to open Trump Accounts to begin with.
“But then once they have it going, it gives them a vehicle to save for retirement or for other needs,” Biggs said. “So, I think there is something there of just dangling this $1,000 in front of people to get the account started, and then they’ve got something that can help them save the rest of the lives.”
Bessent told reporters at the White House on Thursday that some 6 million Trump Accounts have already been opened.
Who can put money into the accounts?
Parents, grandparents, and others can contribute up to $5,000 a year up until the year before the child turns 18.
Also, several companies have said they will match the $1,000 contribution from the government for eligible children.
Employers of children or a child’s parent are allowed to contribute up to $2,500 per year to the accounts.
Also, Dell CEO Michael Dell and his wife, Susan, announced a $6.25 billion philanthropic gift to the Trump Accounts fund that will give an additional $250 to the first 25 million children age 10 and under living in ZIP codes with median incomes below $150,000.
“Anybody who is eligible or has a child that’s eligible and born within those time frames, free money is free money — take that money. Whether you contribute or not is another question,” Stephen Kates, a financial analyst at Bankrate, told the Washington Examiner.
Also, if the maximum amount is contributed each year, beneficiaries could have a serious nest egg by the time they reach adulthood.
Charles Schwab estimated that if a Trump Account is opened at the time of the child’s birth and funded with the maximum amount each year, it could balloon to more than $191,000 by the time the child turns 18.
When can you take the money out?
Beneficiaries will not be permitted to pull from their Trump Accounts until they turn 18. At that time, they can withdraw money for things like higher education costs or a first-time home purchase. After the child turns 18, individual retirement account withdrawal rules apply to it, meaning that distributions before the beneficiary reaches age 59 1/2 are subject to an additional 10% tax.
“I mean, an IRA is obviously aimed at retirement, but for accounts like this, they’re also thinking college money, home down payments, things like that,” Biggs said.
What is the tax advantage of the accounts?
One advantage is that employers can add money to the accounts without first deducting income taxes. Contributions from state and local governments, as well as qualified nonprofit organizations, can also be added without tax.
The money can also be withdrawn without taxes applying in certain circumstances, mostly related to realizing certain life milestones for young adults. Those include withdrawals for higher education expenses, for the purchase or construction of a first home (up to $10,000), for birth or adoption expenses (up to $5,000 per child), for emergency personal expenses (up to $1,000 per year), and for medical expenses.
Overall, the tax advantages are limited and may not be better than those offered by other federal savings plans, such as 529 savings plans.
Where can the money be invested?
The law limits investments to mutual funds or exchange-traded funds that track the overall performance of U.S. companies. The accounts cannot invest in individual companies or high-cost funds.
How to sign up and where to get the apps
New Trump Accounts can be created by visiting TrumpAccounts.gov and filling out IRS form 4547. The app rolled out in the Apple and Google stores on Thursday.
What is the purpose of the accounts?
In addition to helping with costs associated with adulthood — like buying a home or funding an education — the White House sees the Trump Accounts as a key part of building financial literacy in youth.
During a press conference on Thursday, Bessent pointed out that 38% of Americans have no exposure to equity.
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“They don’t share in the great innovation, the machine that is the American economy,” Bessent said.
“I’ve been a big proponent of financial literacy, and I think this is going to be one of the greatest real-time financial literacy educations in history,” the Treasury secretary added.