A year after becoming law, the new savings and investment vehicle for children known as the Trump Accounts officially became operational on Saturday, July 4. President Donald Trump rang the opening bell for Nasdaq and the New York Stock Exchange from the Oval Office on Monday to mark the first day of trading.

Trump Accounts now join the list of other existing tax-advantaged accounts intended to benefit kids’ futures (eg, custodial Roth IRAs, 529 plans, etc.), each of which has its own rules, limitations and benefits. While Trump Accounts do nothing to lessen the complexity for families deciding which accounts best suit their needs and means, they have raised awareness of the value of investing in US children from birth, provide an avenue for third parties to contribute to a child’s future and provide federal seed money for newborns.

To date, more than 6 million Trump Accounts have been opened for children under age 18, according to the Treasury Department. Of those, 1.4 million will receive the much-touted $1,000 federal pilot contribution.

But the total number of accounts opened so far is still just a fraction of the tens of millions of children under age 18 who may be eligible to have one. Making investments in the accounts Eligible investments, by law, must be mutual funds or exchange-traded funds that track either the S&P 500 stock index or any index that tracks the returns on equity investments primarily made in US companies.

Plus, annual fees may not top 0.1% of a child’s assets in the fund. So, for every $1,000 invested, the annual expense will not exceed $1.

Ahead of the launch, the Treasury announced that the default investment for all accounts will be the State Street SPDR Portfolio S&P 500 ETF (SPYM), which tracks the performance of the S&P 500. But “in the coming months,” Treasury noted, parents and guardians will be able to invest contributions in four other exchange-traded funds.

Parents and their kids may keep track of the investments in the account by using an app created by Robinhood, the commission-free trading and investing platform, and the Bank of New York, both of which were selected by Treasury to manage Trump Accounts in their initial phase. That app may be downloaded from the Apple or Google stores or through TrumpAccounts.gov.

What to do if you want to open an account Parents, legal guardians or other authorized adults who want to open an account for an eligible child – and if appropriate, apply for the $1,000 federal pilot contribution – may do so by filling out Form 4547 and submitting it to the IRS. To be eligible for that $1,000, a child must be a US citizen with a valid Social Security number and born between January 1, 2025 and December 31, 2028.

To learn more about how Trump Accounts work, here is an FAQ that covers critical details like how they’ll be taxed, how the money may be used, and whether they’ll affect eligibility for federal benefits.