Trump to Reveal Details of Proposed ‘Trump Accounts’ Savings Plan
U.S. Social Security Administration Commissioner Frank Bisignano joins ‘Mornings with Maria’ to outline how the Trump administration’s tax agenda could deliver record refunds, expand benefits for seniors, and improve government services.
President Donald Trump is set to unveil more details on Wednesday regarding the proposed “Trump accounts,” a groundbreaking initiative aimed at providing newborns with a government-backed savings program.
In collaboration with Treasury Secretary Scott Bessent, Trump will provide updates on this program, which is part of his landmark One Big Beautiful Bill Act. The accounts are designed to operate similarly to traditional long-term investment vehicles, but with specific rules to protect young savers. To kick-start these accounts, the federal government will deposit an initial $1,000 into each new account.
This initiative has garnered financial support from a diverse group of private philanthropists and major financial institutions, including BlackRock, Visa, Mastercard, and BNY Mellon, along with notable figures like Michael and Susan Dell of Dell Technologies, and Ray and Barbara Dalio, whose family foundation is associated with Bridgewater Associates.
Here’s what we know so far about the program.
Who is eligible?
A Trump account can be established for any child under 18 years old who possesses a valid Social Security number. An authorized adult, typically a parent, guardian, adult sibling, or grandparent, must set up the account.
When can you sign up for one?
A screenshot of the Trump Account’s homepage. (White House)
The program is expected to launch in mid-2026, with initial contributions starting after July 4, 2026. Parents of babies born between 2025 and 2028 can open an account by completing IRS Form 4547 or by enrolling through the online portal at TrumpAccounts.gov. After the application is submitted, the Department of the Treasury will begin the account activation process.
Who can add funds to the account?
Individuals can contribute up to $5,000 annually to a Trump account. Governments and nonprofits are also eligible to make contributions. Additionally, funds from another Trump account can be rolled over, allowing money from one account to be transferred directly into another without counting toward the annual contribution limit. Employers participating in the program may contribute up to $2,500 each year.
MICHAEL AND SUSAN DELL DONATE $6.25B TO FUND ‘TRUMP ACCOUNTS’
How do you receive the $1,000 deposit?
The initial $1,000 deposit comes directly from the federal government. The Treasury will make a one-time deposit into every eligible child’s Trump account.
How does the account earn money?
The “Trump accounts” are made up of low-cost funds based on U.S. stock market performance. (Angela Weiss/AFP/Getty Images)
A Trump account grows in value as the funds must be invested in broad U.S. stock index funds, similar to those used in many retirement accounts. These funds track the overall performance of the U.S. stock market, meaning as the companies in the index grow, so does the account’s value.
The government imposes strict limits on what these accounts can hold to ensure they remain simple, low-risk, low-fee, and broadly diversified. Families cannot select individual stocks or invest in narrow sectors like technology or energy. ‘TRUMP ACCOUNTS’ FOR NEWBORNS COULD GROW TO $1.9M, TREASURY SAYS
The IRS mandates that the funds be invested in market-wide index funds that reflect the overall U.S. stock market, rather than any specific segment. Since the funds cannot be accessed until the child turns 18, the account benefits from years of compounding, where investment gains generate additional gains over time.
Are there any estimates of how much money these accounts could actually earn?
Treasury estimates that a fully funded account would earn as much as $1.9 million by age 28. (Tim Clayton/Corbis/Getty Images)
According to Treasury estimates, if families maximize contributions and allow the funds to grow, the Trump accounts could accumulate into a seven-figure balance by early adulthood. A fully funded account could reach as much as $1.9 million by age 28. Even at the lower end of projected returns, the savings account could yield nearly $600,000 over the same period. Without additional contributions beyond the initial $1,000 deposit, the account could still grow to between $3,000 and $13,800 over 18 years.
When can you withdraw the money?
Trump accounts are designed as long-term investment vehicles for children, meaning the funds are effectively locked in until the child reaches adulthood. During the “growth period” (from birth until January 1 of the year the child turns 18), withdrawals are generally not permitted, even in cases of financial hardship.
Are there any exceptions?
Yes, there are four narrowly defined exceptions that allow for withdrawals. The IRS maintains strict limits to ensure the funds remain invested for long-term growth.
What happens when the child becomes an adult?
Once the beneficiary turns 18, they can withdraw funds, and the account will function similarly to a traditional IRA, with the same tax treatment, distribution options, and early-withdrawal rules. However, it retains a unique legal identity that continues to influence how the money can be used, taxed, and reported throughout the beneficiary’s life.
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This means that adults inheriting a Trump account will need to manage it alongside any other retirement accounts they hold, adhering to its specific reporting rules and contribution limitations.
U.S. Social Security Administration Commissioner Frank Bisignano joins ‘Mornings with Maria’ to outline how the Trump administration’s tax agenda could deliver record refunds, expand benefits for seniors, and improve government services.
President Donald Trump is set to unveil more details on Wednesday regarding the proposed “Trump accounts,” a groundbreaking initiative aimed at providing newborns with a government-backed savings program.
In collaboration with Treasury Secretary Scott Bessent, Trump will provide updates on this program, which is part of his landmark One Big Beautiful Bill Act. The accounts are designed to operate similarly to traditional long-term investment vehicles, but with specific rules to protect young savers. To kick-start these accounts, the federal government will deposit an initial $1,000 into each new account.
This initiative has garnered financial support from a diverse group of private philanthropists and major financial institutions, including BlackRock, Visa, Mastercard, and BNY Mellon, along with notable figures like Michael and Susan Dell of Dell Technologies, and Ray and Barbara Dalio, whose family foundation is associated with Bridgewater Associates.
Here’s what we know so far about the program.
Who is eligible?
A Trump account can be established for any child under 18 years old who possesses a valid Social Security number. An authorized adult, typically a parent, guardian, adult sibling, or grandparent, must set up the account.
When can you sign up for one?
A screenshot of the Trump Account’s homepage. (White House)
The program is expected to launch in mid-2026, with initial contributions starting after July 4, 2026. Parents of babies born between 2025 and 2028 can open an account by completing IRS Form 4547 or by enrolling through the online portal at TrumpAccounts.gov. After the application is submitted, the Department of the Treasury will begin the account activation process.
Who can add funds to the account?
Individuals can contribute up to $5,000 annually to a Trump account. Governments and nonprofits are also eligible to make contributions. Additionally, funds from another Trump account can be rolled over, allowing money from one account to be transferred directly into another without counting toward the annual contribution limit. Employers participating in the program may contribute up to $2,500 each year.
MICHAEL AND SUSAN DELL DONATE $6.25B TO FUND ‘TRUMP ACCOUNTS’
How do you receive the $1,000 deposit?
The initial $1,000 deposit comes directly from the federal government. The Treasury will make a one-time deposit into every eligible child’s Trump account.
How does the account earn money?
The “Trump accounts” are made up of low-cost funds based on U.S. stock market performance. (Angela Weiss/AFP/Getty Images)
A Trump account grows in value as the funds must be invested in broad U.S. stock index funds, similar to those used in many retirement accounts. These funds track the overall performance of the U.S. stock market, meaning as the companies in the index grow, so does the account’s value.
The government imposes strict limits on what these accounts can hold to ensure they remain simple, low-risk, low-fee, and broadly diversified. Families cannot select individual stocks or invest in narrow sectors like technology or energy. ‘TRUMP ACCOUNTS’ FOR NEWBORNS COULD GROW TO $1.9M, TREASURY SAYS
The IRS mandates that the funds be invested in market-wide index funds that reflect the overall U.S. stock market, rather than any specific segment. Since the funds cannot be accessed until the child turns 18, the account benefits from years of compounding, where investment gains generate additional gains over time.
Are there any estimates of how much money these accounts could actually earn?
Treasury estimates that a fully funded account would earn as much as $1.9 million by age 28. (Tim Clayton/Corbis/Getty Images)
According to Treasury estimates, if families maximize contributions and allow the funds to grow, the Trump accounts could accumulate into a seven-figure balance by early adulthood. A fully funded account could reach as much as $1.9 million by age 28. Even at the lower end of projected returns, the savings account could yield nearly $600,000 over the same period. Without additional contributions beyond the initial $1,000 deposit, the account could still grow to between $3,000 and $13,800 over 18 years.
When can you withdraw the money?
Trump accounts are designed as long-term investment vehicles for children, meaning the funds are effectively locked in until the child reaches adulthood. During the “growth period” (from birth until January 1 of the year the child turns 18), withdrawals are generally not permitted, even in cases of financial hardship.
Are there any exceptions?
Yes, there are four narrowly defined exceptions that allow for withdrawals. The IRS maintains strict limits to ensure the funds remain invested for long-term growth.
What happens when the child becomes an adult?
Once the beneficiary turns 18, they can withdraw funds, and the account will function similarly to a traditional IRA, with the same tax treatment, distribution options, and early-withdrawal rules. However, it retains a unique legal identity that continues to influence how the money can be used, taxed, and reported throughout the beneficiary’s life.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
This means that adults inheriting a Trump account will need to manage it alongside any other retirement accounts they hold, adhering to its specific reporting rules and contribution limitations.
