The Treasury Department on Thursday confirmed that individuals and corporations will be able to donate publicly traded stock to the government-backed newborn investment accounts widely referred to as "Trump accounts." The accounts are scheduled to formally open on Saturday, the day set aside to mark the United States' 250th anniversary.
Under the program, the federal government will place $1,000 into an account for every child born beginning in 2025 through 2028 for those who meet eligibility criteria, and the Treasury said a number of companies and philanthropists have already made supplementary donations. Contributors may transfer shares of publicly traded companies to the U.S. Treasury, which will then allocate the securities to eligible children's accounts consistent with donor instructions, applicable law, and Treasury guidance.
"By accepting contributions of publicly traded stock, Treasury is creating a practical pathway for large-scale private giving to support the next generation," Treasury Secretary Scott Bessent said in a statement accompanying the guidance on donations.
Parents and legal guardians who wish to establish an account are required to complete a one-page Internal Revenue Service form, Form 4547, the Treasury said. The form is named for Trump, the 45th and 47th president. Accounts are not created automatically by the government - an adult must open the account and is responsible for setting it up and selecting investment options while the child is still a minor.
The Treasury on Wednesday identified five investment funds into which account holders may place the government's initial $1,000 contribution. The department said the funds track some of the prominent Wall Street indexes and are among the most widely traded exchange-traded funds by retail investors.
Annual financial disclosures indicate that Trump himself holds between $7 million and $35.1 million in those same funds, and that he purchased up to $21 million of the funds in 2025. Representatives of the White House did not immediately respond to a request for comment.
According to the Treasury Department, more than 6 million families have signed up for the accounts, though only about 1.4 million account-holders are eligible to receive the federal seed contribution. That discrepancy means most participants who enrolled will obtain the program's tax advantages but will be investing predominantly their own funds.
Trump accounts carry a different tax profile than some other savings vehicles intended for young people: they receive less favorable federal tax treatment in comparison to those alternatives, while allowing broader flexibility in how funds may be used. The Treasury noted that the accounts' holdings are not taxed at the federal level until the account holder reaches age 18, although state-level taxes could still apply in some jurisdictions.
The guidance on accepting publicly traded stock opens an avenue for large-scale private donations to flow into the program, while the account mechanics require proactive steps by adults to establish and manage the accounts during a child's minority.
Summary
The Treasury will accept transfers of publicly traded stock for allocation to government-backed newborn investment accounts that launch Saturday. Eligible children born from 2025 through 2028 will receive a $1,000 federal deposit; parents must open accounts using IRS Form 4547 and select among five broadly traded funds for the seed money.
- Key points
- Publicly traded shares may be contributed to the U.S. Treasury for deposit into Trump accounts in line with donor instructions and legal guidance.
- The federal government will seed accounts with $1,000 for eligible births from 2025 through 2028; five widely traded ETFs will be available for the initial allocation.
- More than 6 million families have signed up, but only 1.4 million are eligible for the federal seed deposit, meaning most participants will invest their own money while receiving tax advantages.
- Risks and uncertainties
- Eligibility limits mean a majority of account holders will not receive the federal seed contribution, affecting uptake and the distribution of benefits.
- Trump accounts provide less favorable tax treatment than other youth-oriented savings plans, potentially influencing family decisions and financial-planning choices.
- Account funds may be subject to state taxes despite federal deferral until age 18, creating variability in net outcomes depending on jurisdiction.