Most Americans start building wealth too late. Trump Accounts are an effort to change that, and for millions of families, some of the funding is already waiting before you put in a single dollar of your own. Here's everything you need to know.
Trump Accounts (officially Section 530A accounts) are a new type of tax-advantaged investment account created under the One Big Beautiful Bill Act. Think of them as a starter investment account for your child, similar to an IRA, but designed for kids from birth through age 18.
Any child under 18 with a Social Security number is eligible. And for children born between January 1, 2025, and December 31, 2028, the federal government will deposit $1,000 directly into the account to get things started. No strings attached. No payback required.
That's not a coupon. That's not a rebate. That's free money your child can invest and grow for the next 18 years.
The $1,000 government seed is just the beginning. Here's what else could be waiting for your family:
A government seed contribution If your child was born between 2025 and 2028, they qualify for $1,000 deposited directly by the federal government. Both you and your child need Social Security numbers to receive it. Make sure that your information is accurate when you open the account.
An extra $250 if your child is 10 or under The Dell family has committed $6.25 billion, one of the largest private investments in American families in history, to seed accounts with $250 for children age 10 and under in ZIP codes with a median household income under $150,000. That’s up to $1,250 before you've contributed a thing. Other philanthropists are following their lead: Ray and Barbara Dalio have pledged $250 per child for qualifying families in Connecticut, and Brad Gerstner has committed $250 for children under five in Indiana. More programs are expected after the July 2026 rollout.
Employer matching A growing list of major employers, including JPMorgan Chase, Bank of America, Dell Technologies, BlackRock, Chipotle, Uber, Visa, Robinhood, Coinbase, and more, have pledged to match contributions to their employees' children's Trump Accounts. Employers can contribute up to $2,500 per year. Check with your HR department now. This is free money tied to your job. Treat it like a 401(k) match.
Cash back from everyday spending Visa cardholders can redirect credit card cash back rewards directly into a Trump Account. Your regular grocery runs and gas fill-ups could quietly be building your child's investment balance.
Use the Level All’s Trump Account Growth Calculator to see how you can optimize your child’s investment.
Even if you never contribute a dollar of your own money, the government estimates a $1,000 seed left untouched will grow to roughly $6,000 by the time your child turns 18, assuming a 7% average annual return.
*Assumes 7% average annual return from birth through age 65, with no additional contributions in or after the year you turn age 18. Figures are hypothetical and do not reflect taxes, fees, or inflation. Actual returns will vary. Investments involve risk, including loss of principal.
Time is the most powerful variable here. A dollar invested at birth is worth dramatically more than a dollar invested at 18. Every year you wait is a year of compound growth your child doesn’t get back.
And the returns go far beyond the account itself. Research shows that children who have assets early develop stronger financial habits and smarter decision-making. Ownership builds confidence and a foundational sense of security. A child who grows up knowing they have something invested in their name grows up with a relationship to money that most adults spend a lifetime trying to build.
Opening a Trump Account is designed to be simple. For many families, it's built right into the tax filing process.
You’ll need your Social Security number and your child’s Social Security number. That’s it. You don’t need to invest a large amount upfront. Even $25 or $50 a month, contributed consistently, adds up. And anyone — grandparents, relatives, family friends — can contribute to the account, making it a meaningful option for birthdays and holidays too.
This is not a college savings account Trump Accounts are tax-deferred investment accounts. Money grows without being taxed each year, but withdrawals are generally taxed as income. If your primary goal is funding education, a 529 plan offers better tax treatment for that specific use. Trump Accounts are built for long-term wealth building.
Early withdrawals come with penalties At age 18, the account converts to a traditional IRA. Like any IRA, withdrawals before age 59½ are subject to income tax plus a 10% early withdrawal penalty. This account is most powerful when treated as a long-term asset, not tapped for a first car or college tuition.
The Roth Conversion: The move most families will miss Here’s where it gets powerful. Once your child’s Trump Account converts to an IRA, they also have the option to convert that IRA again into a Roth IRA. The best time to do this? As early as you can, while they’re making a modest or even zero income. Pay the tax bill once, at their lowest-ever tax rate, and the account grows entirely tax-free from that point forward. No taxes on withdrawal. No required minimum distributions. Ever.
The numbers are striking. A family that contributes $5,000 per year and converts at age 24 could turn roughly $135,000 in total out-of-pocket costs into a $3 million tax-free retirement account. It’s called the Roth Conversion, and once you understand it, you’ll never look at this account the same way again.
Check out LevelAll.com for a deeper dive on 529 plans and Roth IRAs.
For millions of American families, Trump Accounts represent a rare opportunity to start building real wealth for your child with money you don’t have to pay back. The $1,000 seed, employer matching, donor programs, and cash back contributions mean you could have a meaningful head start before you ever open your wallet.
The families who act early are the ones whose kids will feel the difference 18 years from now. Every day that goes by is more interest that your child won’t get!
Open the account. Claim the free money. Let compound growth do the rest.
See your child's projected balance with our free calculator at LevelAll.com.
*This article is for informational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified financial advisor for guidance specific to your situation.
