The Internal Revenue Service (IRS) says more than 4 million children have been enrolled in the newly created Trump Accounts program, with over 1 million opting in to receive a $1,000 federal contribution. The figures come as the agency continues to process tax filings ahead of the April 15 deadline.
The initiative, established under the One, Big, Beautiful Bill signed on July 4, 2025, introduces a new type of savings account aimed at minors. It is designed to support long-term financial growth, starting with a government-backed deposit for eligible children born between 2025 and 2028.
Enrollment Grows as Families Claim Federal Seed Funding
The IRS reports that enrollment data is based on Form 4547 submissions filed alongside individual tax returns. According to the agency, families can claim the $1,000 pilot contribution by completing a one-page election form during tax filing.
Eligibility is limited to children under 18 who have a Social Security number, with only one account permitted per child. To qualify for the federal contribution, the child must also be a U.S. citizen and expected to be claimed as a dependent for tax purposes, as outlined in official IRS guidance.
IRS chief executive officer Frank J. Bisignano described the process as straightforward, stating that families “just need to check the box on a form to stake their claim for the $1,000 contribution,” according to the IRS announcement.
The program has drawn attention for its scale. According to Amira Boland of the New Practice Lab, the initiative could become one of the largest individual cash transfer efforts in U.S. history, reflecting both public uptake and the structure of automatic seed funding combined with private contributions.
Investment Structure and Long-Term Restrictions Define the Accounts
Trump Accounts function similarly to individual retirement accounts but are tailored specifically for minors. According to IRS guidelines, funds are restricted to low-cost index mutual funds or exchange-traded funds that primarily track U.S.-based companies, with oversight from the Treasury Department.
Annual contributions from individuals and employers are capped at $5,000 per child, though additional deposits from government entities or charitable organizations are not subject to this limit. Unlike traditional retirement accounts, contributions do not require earned income and are not restricted by the contributor’s income level.
The accounts are designed for long-term growth, with withdrawals generally prohibited until the child reaches age 18. After that point, the account transitions to rules that largely mirror those of a traditional IRA, including regulations on distributions and continued contributions.
According to the Treasury Department’s rollout timeline, account activation details will begin reaching families in May 2026, with an online portal expected to open on July 5. Initial government deposits from the pilot program are scheduled no earlier than July 4, 2026. The structure allows teenagers who later earn income to contribute separately to traditional or Roth IRAs without affecting their Trump Account limits. This dual-track approach, as described by policymakers, is intended to support both early savings and continued retirement planning into adulthood.
