Overview

• Treasury and IRS are finalizing regulations on enrollment procedures, funding mechanisms and tax treatment before Trump accounts open in July 2026
• U.S. newborns born from 2025 through 2028 with Social Security numbers will automatically receive a $1,000 government-seeded account that converts to a traditional IRA at age 18
• Families and employers can contribute up to $5,000 per year—employer contributions up to $2,500 are excluded from taxable income—and all funds must be invested in low-cost U.S. stock index funds
• Analysts caution the program may disproportionately benefit wealthier families and increase the federal deficit compared with established savings options
• Financial advisers say Roth IRAs and 529 education plans generally offer greater tax advantages and flexibility for most savers than Trump accounts