Every child born after December 31, 2024 receives a $1,000 government seed investment — tax-free, in their name. CleverAlpha makes it simple to open the account, claim the seed, and contribute up to $5,000 per year to maximize long-term, tax-free growth.
Select an annual contribution level and see projected account values based on historical S&P 500 averages, starting with the $1,000 government seed.
Estimates are for illustration only, based on an account opening at birth with $1,000 opening deposit, derived from historical S&P 500 averages gross of any fees, commissions, or taxes. Actual results will differ and are not guaranteed. Source: trumpaccounts.gov
From IRS form to invested account — the entire process is digital, fast, and handled by CleverAlpha.
Starting May 2026, elect to open a Trump Account for your eligible child by completing IRS Form 4547. CleverAlpha will guide you through it.
A Treasury-approved trustee receives your election. Complete fast, digital identity verification to activate your child's account.
Your child's money goes to work on July 5, 2026, invested into eligible low-fee ETFs and mutual funds — the same kind CleverAlpha uses across all accounts.
You don't have to add anything beyond the seed. But if you do, you can contribute up to $5,000 per year from any source. Every dollar compounds tax-free.
The account is in your child's name. You are the sole custodian until they turn 18. From there, it's theirs — and a lifetime of compounding is already behind it.
A Trump Account is powerful — but it's not the only way to invest for your child. The right choice depends on your goals, flexibility needs, and tax situation. Here's how the major account types stack up.
| Feature | Trump Account MAGA Account |
529 Plan Education Savings |
Custodial Roth IRA Retirement Head Start |
UGMA / UTMA Custodial Account |
|---|---|---|---|---|
| Best For | Long-term wealth for any purpose | College / education costs | Child with earned income who wants a retirement head start | Flexible gifting, no restrictions |
| 2026 Contribution Limit | $5,000/yr + $1,000 gov seed | No limit (gift tax rules apply) | $7,000 or earned income (lesser) | No limit (gift tax rules apply) |
| Tax Treatment | Tax-deferred; taxed as ordinary income at withdrawal | Tax-free growth & withdrawal for qualified education expenses | Tax-free growth & withdrawal (after 59½ + 5yr rule) | Taxed annually on dividends/gains; "Kiddie Tax" may apply |
| When Can Child Access? | Age 18 (locked until then) | Anytime (for qualified expenses) | Contributions anytime; earnings at 59½ | Age of majority (18 or 21 by state) |
| Use of Funds | Any purpose | Education only (or 10% penalty) | Retirement (contributions flexible) | Any purpose |
| Government Seed | $1,000 for births 2025–2028 | None | None | None |
| Earned Income Required? | No | No | Yes — limits contribution | No |
| Financial Aid Impact | Low (not counted on FAFSA) | Low (counted as parent asset on FAFSA) | Low (not counted on FAFSA) | High — counted as student asset on FAFSA |
Best if you want maximum flexibility at adulthood with no restriction on how funds are used. The $1,000 government seed for 2025–2028 births makes this a no-brainer starting point.
Best if college is the primary goal and you want tax-free growth on education spending. Stack it alongside a Trump Account for a one-two punch.
Best if your child has earned income (job, self-employment) and you want to give them the ultimate head start on retirement. Tax-free for life if managed well.
Best for gifting assets with zero restrictions — stocks, real estate, anything. No contribution limit. Child gets full control at majority. Watch the FAFSA impact.
Not sure which account is right for your child? Our free calculator models long-term growth across account types so you can see the numbers side by side.
Try the Child Investment CalculatorA Trump Account can receive funds from five different sources during the growth phase — from government programs to personal contributions from anyone who wants to help.
A $1,000 pilot program contribution from the federal government for every eligible child born after December 31, 2024.
Qualified contributions from state, federal, or tribal governments, Washington D.C., or approved nonprofit organizations.
Tax-free employer contributions of up to $2,500 — an emerging employee benefit for families with young children.
Qualified rollovers from other eligible accounts — including 529 plans with unused balances under SECURE 2.0 provisions.
Contributions from the beneficiary, parents, grandparents, or anyone else who wants to invest in the child's future.