One of the many provisions of H.R. 1 (aka, One Big Beautiful Bill Act), which was signed into law by the President in July of last year, is a federally funded stock market indexed investment account for children born between 2025 and 2028.

Funded to the tune of $14.4 billion, these account, which are also known as Trump accounts, were recently back in the news, when Michael and Susan Dell announced a pledge to seed millions of these and other accounts with a private contribution of $6.25 billion.

Taken together, children born between ’25 and ’28 will receive $1,000 in their accounts from the federal government, and $250 from the Dell’s contribution. In addition, the Dell’s pledge accounts for $250 for about 25 million other children born in 2014 – 2024 who live in zip codes where the median household income is $150,000 or less.

The objective of these accounts is to provide every qualifying U.S. child with a financial head start / a starter fund that can grow through investments in public stock markets to finance future life goals when these children become adults. That can include pursuing a college education or specialized training, buying a first home, or even using the funds to start a business.

In this post, we shed light on what Trump accounts are and aren’t, how they work, and what to expect.

According to the Council of Economic Advisers (an agency that resides within the Executive Office of the President), a Trump account started for a baby born in 2026 could grow to more than $300,000 by the time that child turns 18 (assuming maximum contributions and average U.S. stock market returns), and more than $1.9 million by age 28 given the same.

What Trump Accounts Are (and Aren’t)

A Trump account is a tax-advantaged investment account established on behalf of a child (under 18) similar in structure to an Individual Retirement Account (IRA). Think of them as a tax-advantaged complementary savings account for children.

They are not like a 529 plan, which is a tax-advantaged plan specifically for education that often offers tax-free withdrawals when used specifically for qualified educational expenses. Distributions from Trump accounts may be used for purposes other than education, such as buying a first home or starting a business. They’re also not a spending account or a trust fund that can be accessed at any time; early withdrawals are restricted and regulated. Nor are they a substitute for other savings/retirement tools.

How Trump Accounts Work: Eligibility, Contributions, and Distributions

Here’s how Trump accounts work (for more details, please see IRS Notice 2025-68 (PDF)): Continue reading… Continue reading… Continue reading…