US Treasury seeds US$1k per newborn, promising the untouched seed could reach about 5x by age 18
A US$1,000 government deposit at birth could grow into a six‑figure nest egg for American children — and Wall Street is lining up to help make it happen.
According to Reuters, US President Donald Trump’s administration is launching “Trump Accounts” for children born between 2025 and 2028, each seeded with US$1,000 from the US Treasury and invested in low‑cost index funds on a tax‑deferred basis.
The accounts go live on July 4 and convert into a traditional IRA at age 18, with income tax due on withdrawal.
Family, friends and employers can contribute up to US$5,000 a year per account, with the employer portion expected to be capped at US$2,500.
The administration estimates the untouched US$1,000 could reach about US$5,800 by age 18, while maxing out contributions could push the balance to almost US$1.1m by age 28.
Financial analysts quoted by Reuters, however, see a more conservative outcome of around US$700,000 by 28 under the same assumptions.
Large US financial institutions have moved quickly to align with the program.
Reuters reported that JPMorgan Chase, Bank of America and Wells Fargo will match the government’s US$1,000 seed for eligible employees’ children.
USA Today said other firms pledging to match or support the US$1,000 contribution for eligible staff include Robinhood Markets, Chime Financial, SoFi Technologies, Charles Schwab, the Investment Company Institute, Russell Investments, BlackRock, Bank of New York Mellon, Visa, Coinbase, Bank of America, Mastercard and Wells Fargo.
Backers describe the Trump Accounts, officially called 530A accounts, as a long‑term wealth‑building tool designed to start investing at birth and improve economic mobility.
CNBC reported that hedge fund manager Brad Gerstner helped shape the program, which aims to narrow the US wealth gap by encouraging long‑term saving and investing from day one.
The US Treasury expects about 25 million families to qualify for the US$1,000 seed, and more than 500,000 families have already signed up, Reuters said.
