President Trump’s One Big Beautiful Bill Act introduced Trump accounts, a tax-deferred savings vehicle for U.S. citizens born between Jan. 1, 2025, and Dec. 31, 2028. These accounts come with a $1,000 government deposit and aim to help young people save for future expenses like college or a first home.

In December 2025, Michael and Susan Dell announced $250 contributions to Trump accounts for 25 million American children 10 and under in certain ZIP codes. The total endowment amounts to about $6.25 billion, supercharging the initiative for financial security.

Trump accounts, essentially IRAs, are funded with after-tax dollars. Only individuals under 18 with a Social Security number can open an account. Investments must be made in low-cost index funds, with annual contributions capped at $5,000, including up to $2,500 from employers.

Projections from the White House suggest that children born in 2026 could accumulate substantial savings by age 18 and 28 with maximum annual contributions. Even with no additional contributions, an account could still grow significantly with just the initial $1,000 deposit.

The enrollment process for Trump accounts involves completing a draft Form 4547 with the child’s information and proof of eligibility for the initial $1,000 contribution. The form can be filed at any time, with the Treasury Department providing guidance on activating the account.

Experts are skeptical about the advantages of Trump accounts over traditional options like 529 education savings plans or IRAs. They note that these accounts have limitations and may not offer clear benefits for families planning for their children’s future financial needs.

Read more at Yahoo Finance: How they work, who qualifies