"$1,000 at Birth, $1.9 Million by Age 28: New Savings Account to Launch in the U.S."

U.S. Government Launches Investment Account App for Children

Open to Citizens Born 2025–2028

Government Provides $1,000 to Start Investing

The U.S. government is launching a dedicated application (app) for child investment accounts. This is a system where the federal government provides $1,000 (about KRW 1.5 million) to children born in the United States to help them build assets.

On the 27th (local time), The Wall Street Journal (WSJ) and CNN reported that "an app allowing millions of Americans to manage 'Trump Accounts' in their children's names is scheduled to launch on the 28th."

U.S. President Donald Trump poses holding a baby after giving a speech at a congressional picnic event held at the South Lawn of the White House in Washington, DC. Photo by AFP Yonhap News

The Trump Account is a savings account in the form of an Individual Retirement Account (IRA) for children. While the funds in the account grow tax-deferred, similar to traditional IRAs, the specific regulations regarding contributions, withdrawals, and fund usage differ. In addition, account funds cannot be used until the child turns 18.

Eligibility for opening an account is limited to children with a Social Security Number (SSN). U.S. citizens born between 2025 and 2028 can receive an initial government contribution of $1,000.

Parents, relatives, acquaintances, and employers can collectively deposit up to $5,000 (about KRW 7.51 million) per year. At launch, the default investment product will be an S&P 500 exchange-traded fund (ETF), with various broad-based index products to be added in the future.

This policy is based on the "One Big Beautiful Bill Act" (OBBA), a large-scale tax cut law enacted last year. The White House explained that if the account is funded up to the maximum limit and maintained for a long period, it could grow to as much as $1.9 million (KRW 2,854,180,000) after 28 years.

The Treasury Department plans to begin activating accounts for families registered in the program. The app, co-developed by BNY Mellon and Robinhood, will be available on the Apple App Store and Google Play Store. Families who have not yet registered can sign up through the official Trump Account website.

Trump Account App. U.S. Government Website

However, actual account deposits will only be possible starting July 4. Accounts will be officially opened that day, and the first $1,000 government contribution will be paid to eligible accounts. Until then, parents and children can access financial education materials through the app.

According to a preview video of the app released by the Treasury Department, parents can set up automatic transfers and check projected future account balances. When children turn 18, control of the account is transferred to them, and they can either withdraw funds or continue investing, according to the rules that apply to traditional IRAs.

U.S. Treasury Secretary Scott Bessent said in a statement, "The Trump Account app is a simple and safe means for households to easily participate in a long-term financial foundation-building program."

There is also an assessment that the account offers value for parents whose children are not eligible for the $1,000 government contribution, as companies and charitable organizations can also contribute to the accounts. WSJ reported that if parents invest sufficient funds over the long term and later convert the account into a Roth IRA, it could enable significant asset accumulation for their children. While management of the Trump Account will initially be available only through the app, there are plans to allow transfers to accounts at other financial institutions in the future.

This content was produced with the assistance of AI translation services.