Overview
- The program went live on Saturday July 4 and President Trump marked the rollout by ringing the New York Stock Exchange and Nasdaq opening bells from the Oval Office on Monday.
- Treasury says more than 6 million Trump Accounts have been opened and that 1.4 million of those accounts will receive the one-time $1,000 federal seed payment while the President separately said over 500,000 deposits had been made.
- Parents or legal guardians open accounts using IRS Form 4547, manage custodial accounts until beneficiaries turn 18, and accounts automatically convert into traditional IRAs at adulthood with standard tax rules on withdrawals.
- By law contributions must be placed in low-cost U.S. equity index funds, Treasury named State Street’s SPDR Portfolio S&P 500 ETF (SPYM) as the default, set a 0.10% annual fee cap, and assigned Bank of New York Mellon and Robinhood to run initial operations and the new app.
- Major private pledges and employer matches—most notably Michael and Susan Dell’s $6.25 billion commitment and Micron’s $250 million—boost seed funding but analysts warn the plan may widen wealth gaps if lower-income families do not participate and could concentrate large, lasting flows with a few big index providers.