Individuals and corporations can begin making contributions to tax-advantaged investment accounts for children starting July 4, 2026, and some major employers announce they will match the $1,000 of the government seed funding for eligible employees. Most companies are awaiting additional guidance before initiating such initiatives. Children born between 2025 and 2028 can receive a $1,000 federal contribution from the Treasury.
Trump Accounts were established in the 2025 tax-and-spending bill. Parents can sign their child up for an account and it will be invested in index funds and can be accessed once the child turns 18, and it becomes similar to an IRA. Annual contributions are limited to $5,000, and employers can contribute up to $2,500 each year. Employers can also set up plans for their employees to make pre-tax contributions to the accounts through cafeteria plans.
Some charitable organizations are contributing to the accounts, including a $10 billion donation from Michael and Susan Dell. About six million children have been signed up as of July 6, according to Treasury Secretary Scott Bessent. Parents, grandparents, and other eligible contributors will be able to collectively add as much as $5,000 per child each year. The child must be a U.S. citizen, and only one account is allowed per child. On August 11, 2026, the U.S. Treasury Department released a proposal clarifying key aspects of how employers can facilitate contributions towards a Trump Account for their employees. Most employers will likely find the proposal clarifies many of the issues that concern such programs.
Non-profits and state and local governments can make tax-deductible contributions that do not count towards the limit. Accounts can be set up through IRS Form 4547 or an online application at https://trumpaccounts.gov. Contributions by individuals are like Roth (rather than traditional) IRAs in that they are not deductible, which affects how withdrawals are taxed later. Trump Accounts represent an effort to institutionalize asset building from birth. Sen. Cory Booker (D.N.J.) considers the program a step in the right direction. He calls it a downpayment on a bipartisan idea that should be improved over time. Parents who contribute to these accounts later converting it to a Roth IRA can set up a great retirement plan for their child. On August 11, 2026, the U.S. Treasury Department released a proposal clarifying key aspects of how employers can facilitate contributions towards a Trump Account for their employees. Most employers will likely find the proposal clarifies many of the issues that concern such programs.
A related development is that President Trump signed an executive order in late April expanding access to retirement plans for workers whose employers do not offer a retirement plan. The plan will be implemented at the start of 2027, in which anyone can go to https://www.trumpira.gov and open the new low-cost IRA account. Also, as part of the federal Saver’s Match Program, low income Americans will be eligible to receive up to $1,000 per year in matching funds deposited directly into their accounts. Any individuals earning less than $35,500 and married couples earning less than $71,000 are eligible for the Saver’s Match.
This article is part of our September 2026 Newsletter.
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