Written By: Jeff Campos, Wealth Manager
There is a new savings account for children that was established under the One Big Beautiful Bill, enacted on July 4, 2025.
Trump savings accounts are for U.S. citizen children under the age of 18. Eligible children born between January 1, 2025 and December 31, 2028, will receive a government-funded investment account at birth, and the government will deposit $1,000 into the account in the child’s name. This money would then be invested in stocks, ETFs, or mutual funds, allowing it to grow over time. Families can contribute up to $5,000 annually per child in after-tax dollars to the account as the child ages, increasing its value. Employers may contribute up to $2,500 annually per child as well.
The purpose of these accounts is to give young people a financial “head start” when they reach adulthood. By the time the child turns 18 or older, the account could potentially hold a much larger sum. Money in this account could then be used for important life expenses such as paying for college tuition, buying a home, or starting a small business.
These accounts can be opened by submitting Form 4547. You can include the form with your taxes or submit the form online at any point in the year. Contributions cannot be made until after July 4, 2026.
In conclusion, Trump savings accounts are aimed at promoting financial growth and opportunity for young Americans and highlights the importance of early investment and saving.
With these accounts being new, there could be some changes to the rules and regulations around them in the future.
As always, please reach out to the Wheelhouse team if you have any questions.
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