91涩漫

Explore

Trump Accounts Have Arrived. Here鈥檚 What Families Need to Know

A visual explainer on these new accounts, which will have some babies investing from day one.

By Emily Tate Sullivan & Dianne Kirsch | July 29, 2026
By &

This summer, a new investment opportunity became available to millions of American babies and children.
Trump Account funds must be invested in low-cost index funds 鈥� either stock mutual funds or exchange-traded funds that track an American stock index, such as S&P 500.
A Trump Account is structured like a custodial IRA, so funds cannot be withdrawn until the beneficiary turns 18 years old. Then the account begins to function like a traditional IRA: Any withdrawals between ages 18 and 59.5 would generally incur a 10% early withdrawal penalty, although certain exceptions apply, including qualified higher education expenses, eligible medical expenses, a first-time home purchase and more.
By mid-july, over 6.5 million American children had accounts established in their name. That's less than 10% of all children under age 18.
There are several possible explanations for the limited uptake.
Trump Accounts establish a new type of tax-advantaged individual retirement account for children. But it's not the only program designed to help children save for their futures. Alternatives include 529 plans and "baby bonds".
The Trump Accounts aim to give children a stake in the future and build long-term financial security for millions of young Americans. The feasibility of that, however, is up for debate.
These concerns may be time-limited, ultimately. As of now, babies born after Jan. 1, 2029, are not slated to receive any seed funding from the government.

Did you use this article in your work?

We鈥檇 love to hear how 91涩漫鈥檚 reporting is helping educators, researchers, and policymakers.

Republish This Article Learn More

Emily Tate Sullivan is a contract early care and education correspondent at 91涩漫.

is graphic designer, specializing in brand identity, art direction, print collateral, books, annual reports and website design.

Republish This Article

We want our stories to be shared as widely as possible 鈥� for free.

Please view 91涩漫's republishing terms.





On 91涩漫 Today