Trump Accounts launch for US children: newborns get automatic $1,000 deposit

Irene Wright, USA TODAY Tue, July 7, 2026 at 10:51 AM PDT 3 min read

The long-anticipated Trump Accounts are now officially live, promising to provide American children and infants with free money to launch long-term savings.

During a July 6 ceremony in the Oval Office, President Donald Trump said the $1,000 accounts would make millions of babies in America "very rich."

As many as 6 million children already have active accounts. Children born between 2025 and 2028 will receive $1,000 deposits from the federal government automatically.

Functioning as a sort of IRA for kids, are Trump Accounts better than other savings options for families in Georgia? Here is what to know.

How Do Trump Accounts Work?

Trump Accounts became active on July 4 and can now accept contributions.

• Parents or legal guardians can fill out IRS Form 4547 online to create an account, requiring the date of birth, Social Security number, and contact information for both the parent and child.
• You can also file the form with your tax return, though that may be months away. You will then be contacted by the partner financial firm (initially handled by BNY) holding your Trump Account to complete setup.
• If the account is created for a baby, $1,000 will be deposited from the federal government. If the child is older, the account can still be created, but no government money will be added. However, other funds may be available to your family.

Michael and Susan Dell, of the Dell Foundation, pledged $6.25 billion for the initiative. According to WSB-TV, the Dell Foundation estimates that 700,000 Atlanta families will be eligible for additional funds through the accounts.

• Parents and guardians can contribute up to $5,000 per year after tax.
• Employers can also contribute for minor employees or an adult employee's dependent.
• The accounts have a growth period until a child turns 18, after which they become a traditional IRA with all standard IRA limitations.

Are There Other Savings Accounts for Kids in Georgia?

If your child does not qualify for the $1,000 deposit, Trump Accounts do not necessarily provide any other benefit compared to traditional savings options.

Traditional IRAs

Parents can already set up traditional IRAs for children, setting them up for financial success in the future. There is no minimum age for a child, as long as a custodial parent or guardian is on the account. Since Trump Accounts become a traditional IRA when a child turns 18, it may be more beneficial for your family to start there — especially if you are not receiving the $1,000 deposit.

529 Plans

Families could also opt for a 529 plan, which offers major tax advantages for paying for a child's education. Up to $35,000 can be rolled over from a 529 plan to a Roth IRA, meaning money not used for education can still act as a savings account later in life. These accounts also have no contribution limits, so a family could contribute more than $5,000 per year — unlike Trump Accounts.

Brokerage Accounts

Brokerage accounts could also outperform Trump Accounts in the long term. These accounts are taxed at the long-term capital gains rate, which is lower than income taxes. A brokerage account that invests in low- or no-dividend mutual funds could generate more money by the time a child reaches 18.

Considerations

Trump Accounts are geared toward a child's retirement, but there are many costly steps in a person's life before the end of their working career. Families should consider education accounts, savings for home purchasing, or even their own retirement as they decide which option best suits their needs.