As families across Crown Heights and the wider Anash and frum community continue to grow, a new federal initiative is offering an exciting opportunity for young children to start adulthood with potentially thousands of dollars.

Known as Trump Accounts, the program announced by the Trump administration provides $1,000 in seed money for eligible children, which can grow significantly over time.

Families who contribute additional funds can see that amount compound, and some employers and philanthropic organizations are also offering matching or supplemental contributions, further increasing the potential value of these accounts.

Here is a clear breakdown of what Trump Accounts are, who qualifies, when you can sign up, how contributions work, and how these accounts compare to other options.

What Are Trump Accounts?

Trump Accounts are government-authorized, tax-advantaged investment accounts created under federal legislation signed into law in 2025. The goal is simple: encourage early saving and long-term investing by giving eligible children a financial foundation from birth.

For children who qualify, the federal government deposits a one-time $1,000 seed contribution, which is invested and allowed to grow over many years through the financial markets.

Who Is Eligible?

There are two parts to eligibility: who can open an account, and who qualifies for the $1,000 government seed money.

Any child under age 18 who is a U.S. citizen with a valid Social Security number can have a Trump Account opened in their name.

The $1,000 government deposit is only available for children born between January 1, 2025, and December 31, 2028. Children born before 2025 can still benefit from the account structure and additional contributions, but they won’t receive the federal seed money.

When Can You Sign Up?

You can fill out the official IRS Form 4547 now to start the process. Each form allows you to sign up up to two children at a time; for more children, simply submit additional forms.

However, the accounts will not be fully active or able to receive contributions, including the $1,000 government seed money, until around early July 2026. That’s when the program officially launches.

How Much Can Be Contributed?

Beyond the initial $1,000 seed, parents, relatives, and friends can contribute to a child’s account. Annual contributions are capped at $5,000 per child per year. Employers may also contribute to an employee’s child’s account, up to $2,500 per year, and some offer matching contributions to increase the account’s value. Even without extra deposits, the seed money will grow through compounding over the years.

How Is the Money Invested?

All funds must be invested in diversified, low-cost options such as index funds or ETFs, mainly tracking U.S. stocks and bonds. The structure encourages steady, long-term growth rather than short-term speculation.

How Much Could It Grow?

Growth depends on market performance and how much is contributed:

The $1,000 seed alone could grow to several thousand dollars by age 18 through compounding. Contributing $250 per year from birth could grow to roughly $20,700 by age 18.

Contributing the full $5,000 annually, assuming long-term market returns, could grow to over $300,000 by age 18 and potentially exceed $1 million by the child’s late twenties.

These are projections only and assume consistent contributions and favorable market conditions. Nothing is guaranteed and everything is of course in the hands of hashem .

When Can the Money Be Used?

Funds generally cannot be withdrawn until the child turns 18, and are intended for major life purposes such as education, starting a business, or buying a first home. Using the money for other purposes before 18 could trigger penalties — for example, taking money out at 18 to buy a car could mean a 10% penalty.

What about taxes?

Withdrawals for the intended purposes are taxed as ordinary income when used. If funds are used for other purposes, penalties may apply in addition to regular income tax.

Bottom Line

Trump Accounts are primarily designed for children born between 2025 and 2028 to take advantage of the $1,000 government seed money. However, any child under 18 who is a U.S. citizen can benefit from opening an account and contributing additional funds. Families who start early can give their children a meaningful financial head start for adulthood.

To sign up, click here.