Imagine giving a child an investment account at birth…one that’s funded and has the potential to grow for nearly two decades before they can use it.
That's the idea behind Trump Accounts, a new federal investment program designed to help children begin building wealth from an early age.
We’ll walk through what Trump Accounts are, who may be eligible, how they work, and why many families are paying attention.
So, what are Trump Accounts?
Trump Accounts are government-created investment accounts designed to help children start investing and building wealth early in life.
The goal is simple: give children a chance to participate in the long-term growth of the U.S. economy from the very beginning of their life.
Children under age 18 who have a valid Social Security number may be eligible for an account once the accounts launch, which is currently slated for July 4th, 2026. And children born between January 1, 2025, and December 31, 2028, may qualify for a one-time government contribution of $1,000 to start their account.
Children born outside that date range can still be eligible for a Trump Account—they simply won't receive the initial government-funded deposit. Additional eligibility requirements may apply as implementation continues.
Unlike a traditional savings account, the money is generally invested in low-cost index mutual funds and ETFs designed to track the U.S. stock market.
And because investing starts early, even relatively small contributions may have years—or decades—to potentially benefit from compound growth.
The program was created to encourage long-term investing and financial participation.
The earlier someone begins investing, the more they may benefit from compounding—the process where investment earnings can generate earnings of their own over time.
By providing an initial contribution and allowing additional investments from families, employers, and other eligible sources, Trump Accounts aim to help more Americans start investing earlier and stay invested longer.
We’ve covered the what, why, and the who… now let’s look at the how – how are Trump Accounts funded?
The initial $1,000 government contribution is only one part of the story.
Parents, grandparents, family members, employers, charitable organizations, and other eligible sources may also contribute.
Current legislation generally allows up to $5,000 in annual contributions from individuals, subject to program requirements and future inflation adjustments.
So, multiple contributors can participate, helping families build an investment account over time.
And the combination of early investing and consistent contributions may significantly influence long-term outcomes.
Trump Accounts are designed to be invested in low-cost index funds tracking the U.S. stock market.
Current legislation limits investments to U.S. equity index mutual funds and ETFs that meet specific requirements.
This approach is intended to keep investing simple and cost-efficient while giving account holders exposure to long-term growth in the U.S. economy.
Funds can be accessed without penalty when the child turns 18 for certain expenses including higher education and a first-time home purchase. Withdrawals may be subject to tax consequences and penalties and would be taxed at ordinary income rates. Funds can also stay invested, allowing the account to operate more similarly to a tradition IRA.
So, why would someone consider opening a Trump Account?
One of the most discussed aspects of Trump Accounts is the impact of time.
While investment results are never guaranteed, long investment horizons have historically played an important role in wealth accumulation.
A child who receives the initial government contribution and remains invested for many years may experience a very different outcome than someone who starts investing later in life.
That's why the program is designed not only to provide an initial contribution, but also to encourage long-term investing habits from an early age.
So, to recap: Trump Accounts represent a new approach to helping children begin investing earlier in life.
By combining an initial government contribution, long-term market participation, and the potential for ongoing contributions, the program aims to encourage saving, investing, and wealth-building over time.
For many families, the greatest potential advantage may simply be time—the opportunity to start early and remain invested for the long term.
You can learn more at iShares.com – and ask us your questions on Reddit at r/iShares.
In order to participate, parents and guardians should enroll through TrumpAccounts.gov or designated program enrollment forms.
Disclosures:
This material is provided for informational and educational purposes only and is intended to provide a general overview of certain statutory provisions under U.S. federal law.
This content does not constitute legal, tax, regulatory, or investment advice and should not be relied upon as an authoritative interpretation of any statute, regulation, or governmental policy. It is not intended to reflect the official views of the U.S. Securities and Exchange Commission (“SEC”), the Internal Revenue Service (“IRS”), or any other governmental or regulatory authority.
The description of applicable rules, requirements, or limitations is based on publicly available information and may involve interpretations that are subject to change as additional guidance, rulemaking, or implementation clarifications are issued.
Nothing contained herein constitutes an offer, solicitation, or recommendation to buy or sell any securities, financial instruments, or investment strategies, nor does it represent that any particular investment approach is suitable for any investor. Investors should consult their own legal, tax, and investment advisors to understand how applicable laws and regulations apply to their specific circumstances.
© 2026 BlackRock, Inc. or its affiliates. All Rights Reserved. BLACKROCK and iSHARES are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
MKTG0626-5556890-EXP0627
