The White House unveiled its detailed plan for the Trump Accounts as described under the “One Big Beautiful Bill.”
“An American child born after December 31, 2024 and before January 1, 2029 for whom a Trump Account is established will receive an initial $1,000 deposit from the government, with the potential for parents to contribute up to an additional $5,000 per year initially,” the White House said. “Employers may make an annual contribution of up to $2,500 to a Trump Account and that contribution will not impact the employee’s taxable income.”
According to estimates made by the Council of Economic Advisers (CEA) using average stock market return data, a Trump Account balance for a child born in 2026 will be $303,800 by age 18 and $1,091,900 by age 28 if maximum contributions are made, and $5,800 by age 18 and $18,100 by age 28 if no contributions are made to the account, the White House statement explained.
The CEA explained in a report that deposits in the Trump Accounts “must be invested in stock mutual funds or exchange-traded funds mirroring the S&P 500 or another American stock index.” Deposits cannot be withdrawn before the child turns 18. “After that point, the account generally is treated as a traditional IRA (Individual Retirement Account) and generally is subject to the same withdrawal rules as other traditional IRAs.”
In April, the Trump administration mulled “baby bonuses” for U.S. families. “The president wants America to be a country where all children can safely grow up and achieve the American dream,” White House Press Secretary Karoline Leavitt said at the time. “As a mother myself, I am proud to work for a president who is taking significant action to leave a better country for the next generation.”
