Treasury Secretary Scott Bessent provided more details on the administration-backed “Trump Accounts” program that allows investments to be made for U.S. children.
“To claim this investment, most families need merely to check a box on Form 4547,” he said, referring to the IRS form.
The accounts will be provided to U.S. children born between Jan. 1, 2025, and Dec. 31, 2028. They will be given an initial $1,000 to be invested into a fund, and up to $5,000 can be put into the accounts each year by parents.
Bessent said that the initial $1,000 deposited into the account will “make young Americans wealthy” because the S&P has grown at a rate of 10.5 percent per year on average since the 1950s.
“A single $1,000 deposit into a Trump account at birth will grow to nearly $674,000 by the age of retirement,” he said.
“Trump accounts are the president’s gift to the American people. They represent perhaps the most groundbreaking policy innovation of modern times. They are shaped by a very simple vision: ‘Every American a shareholder.’ When every American owns a share of the most powerful economy on earth, every American will benefit from our nation’s growth.”
The Treasury has not yet launched the new accounts, and Bessent noted that they would go into effect on July 4, 2026.
Multiple wealthy Americans and institutions have donated to the accounts, with the latest being billionaire investor Ray Dalio and his wife Barbara. Billionaires Michael and Susan Dell also committed to making donations to the Trump Accounts.
Dalio announced that he and his wife would commit $250 to 300,000 children younger than age 10 in Connecticut who live in ZIP codes where the median income is less than $150,000. Dalio founded the investment firm Bridgewater Associates and lives in Connecticut.
“I have been fortunate to live the American Dream. At an early age I was exposed to the stock market, and it changed my life,” Dalio said in a statement, noting that he sees the accounts as putting children on a path toward financial independence.
