Scott Bessent says there will be no restrictions on how children can use 'Trump accounts'
.@POTUS is bringing a new generation of investors into the economy through Trump Accounts, which harness the compounding power of the American stock market.
— Treasury Secretary Scott Bessent (@SecScottBessent) December 7, 2025
These accounts are paired with financial literacy so kids grow up understanding how to build, manage, and benefit from… pic.twitter.com/jFMHQuI5lr
WASHINGTON, DC: Treasury Secretary Scott Bessent said on Sunday, December 7, that there will be no restrictions on how children can use "Trump accounts."
Qualifying children and newborns will have access to the accounts, established under the One Big Beautiful Bill Act, in 2026. Parents can begin contributing to the accounts from July 4, 2026.
Scott Bessent says 'it is a trust fund'
During an interaction with Margaret Brennan on CBS News' 'Face the Nation,' Bessent said, "So, in essence, it is a trust fund. It is a piece of the American economy for every child, and they will be able to take it out when they’re 18, or they can convert it to a more IRA-type program and keep it for their retirement."
The accounts, available to any child with a Social Security number in the United States, will be invested in the stock market as the child grows and will function like individual retirement accounts (IRAs), according to the IRS.
"This is going to bring a whole group of new investors into the market. We’re going to couple it with a big amount of financial literacy, so that children understand what they own," Bessent added.
The IRS revealed last week that individuals can deposit $5,000 into the accounts annually, while employers can contribute $2,500 to an employee’s child's account. Employer contributions will count toward the individual cap.
Additionally, the Treasury Department will make a one-time deposit of $1,000 for children born between January 1, 2025, and December 31, 2028.
Billionaires Michael and Susan Dell announced that they are donating $6.25 billion for accounts of 25 million children aged 10 and younger who do not qualify for the Treasury Department deposit. Funds will be available to children in zip codes where the median household income is under $150,000.
Children will receive $1,000 at birth through 'Trump Accounts'
In early 2025, a law was passed giving $1,000 to every newborn whose parents set up a 'Trump Account.' The accounts invest money in the stock market on behalf of children. Children cannot access funds until they turn 18, and the money can be used for college, starting a business, or buying a first home.
Private banks and brokerages manage investments, which must be placed in US stock market index funds and cannot charge more than 0.10% in annual fees.
Children born before 2025 are not eligible for the $1,000 bonus, but parents can still open accounts for them if they are under 18. Parents may contribute up to $2,500 in pretax income for these children.
