(MENAFN- Live Mint) US President Donald Trump on Tuesday (December 2) introduced a new form that parents can use to enroll their children in Trump accounts, also referred to as 530A accounts or Invest America accounts. The accounts are part of a federal initiative aimed at helping American children build wealth from birth.

The contributions to Trump accounts will be accepted starting July 4, 2026. The accounts are designed to grow through investments and provide children with a financial head start.

How to open a Trump account

At a White House event, Trump released IRS Form 4547, which parents or guardians will use to:

-Open an initial Trump account for a child

-Make an election for a $1,000 Treasury pilot program contribution, if eligible

Once the election is submitted, starting May 2026, the Treasury will send activation instructions to complete the account setup through an authentication process.

Dell's $6.25 billion donation expands reach

The announcement came after news that Michael Dell, the founder of Dell Technologies, and his wife Susan, pledged $6.25 billion to fund 25 million Trump accounts, extending the program's reach beyond what is mandated by federal legislation. This gift will provide additional financial support to children eligible under the program.

What are Trump Accounts?

Trump Accounts are tax-deferred savings accounts for children under 18, designed to grow through investment earnings over time. Once the child reaches adulthood, the accounts function similarly to a traditional IRA.

Eligibility: All US citizens born between January 1, 2025, and December 31, 2028, with a valid Social Security number.

Government contribution: Each account receives a one-time $1,000 seed contribution from the Treasury.

Annual contributions: Families and others can contribute up to $5,000 per year.

Investment and growth

Trump Accounts are legally required to invest in broad US equity index funds, such as the S&P 500.

If fully funded and left untouched, a Trump Account could grow to $1.9 million by age 28, giving children a strong foundation for financial independence.

Contributions and access

Who can contribute: Parents, guardians, grandparents, friends, employers, and qualifying charitable or government organizations.

When contributions start: July 4, 2026.

Withdrawal rules: Funds cannot be withdrawn before age 18, except in limited cases like rollovers or death.

Also Read | Meet Michael, Susan Dell - philanthropists behind $6.25 bn pledge for US kids Employer contributions

Employers may offer pre-tax contributions to a dependent child's Trump Account through a cafeteria plan, up to $2,500 per employee per year.

Purpose of Trump Accounts

Trump accounts aim to provide a long-term savings and investment vehicle for children, allowing families to contribute and grow funds in a secure, government-backed account. The initiative is part of President Trump's broader plan to encourage financial security and wealth-building for future generations.

Also Read | Explained-What are Trump Accounts? Eligibility, contributions, projected returns

MENAFN02122025007365015876ID1110427873