Bessent unveils new Trump Accounts website as part of push to encourage saving for children
Treasury Secretary Scott Bessent on Wednesday unveiled the new website for the Trump Accounts program, a tax-deferred investment vehicle for American children. He also announced a new Trump Accounts partner, billionaire hedge fund manager Ray Dalio.
At a briefing on the program, Bessent projected that the $1,000 deposited into a Trump Account by the government when a child is born would grow to over $600,000 by retirement age, assuming that the historic growth rate continues. For families who invest $5,000 each year in the accounts, that sum would grow to $1 million, he added.
Parents may sign up their children by making an election on a new IRS form — Form 4547 — when they file their taxes. A financial institution will receive the child's funds and activate the account. Trump accounts are to be invested in an authorized investment, like mutual funds or exchange-traded funds that track the S&P 500 stock index or another index with mostly U.S. equities. Financial firms managing the funds also may not charge more than 0.1% in annual fees.
Children who are U.S. citizens born between Jan. 1, 2025, and Dec. 31, 2028 are eligible to receive the $1,000 government contribution into their accounts. Children under 18 who have a Social Security number can receive up to $5,000 each year from parents, guardians or others in their account.
Dalio, the founder of Bridgewater Associates, the world's largest hedge fund, is contributing $75 million as part of a 50-state push for businesses and philanthropic organizations to donate in each state. Dalio will "boost funding for Trump accounts for kids across Connecticut," Bessent said.
"Ray and Barbara Dalio through Dalio Philanthropies announced today that they are joining the Dell family in seeding the new Trump Administration investment accounts with an additional $250 per child for approximately 300,000 children in Connecticut," the Dalios said in a statement on their foundation's website.
The accounts were created under President Trump's "big, beautiful bill" tax and spending bill earlier this year. Households of any income may open an account, and all such accounts qualify for the one-time $1,000 government contribution.
Billionaires Michael and Susan Dell donated a historic $6.25 billion earlier this month, pledging to deposit $250 into the accounts of 25 million children ages 10 and younger as an incentive to save for the future.
Families will be able to start making financial contributions on July 5, 2026. They won't be able to withdraw funds from the Trump account before a child turns 18, except under certain conditions.