IRS Reports 4 Million Children Enrolled in Trump Accounts

The Internal Revenue Service announced that more than 4 million children have enrolled in Trump Accounts, formally known as Invest America accounts. Established under the One, Big, Beautiful Bill enacted in July 2025, these tax-advantaged savings vehicles are available to U.S. citizen children under 18 with valid Social Security numbers. Over 1 million of these accounts have opted into a federal pilot program providing a $1,000 seed contribution for eligible children born between 2025 and 2028.

Funds in these accounts must be invested in low-cost American stock index mutual funds or ETFs compliant with U.S. Treasury Department guidelines. While individuals and employers can contribute up to $5,000 annually—with employer contributions capped at $2,500—government and charitable contributions remain uncapped. Withdrawals are generally prohibited until the child reaches 18, unless used for qualified purposes such as starting a business or education.

The U.S. Treasury will distribute account activation information in May 2026, with an online portal opening July 5, 2026. Pilot deposits are scheduled to begin no earlier than July 4, 2026. Despite the federal tax-deferred status, the California Franchise Tax Board announced it will not recognize this status for state tax purposes.