New Trump Accounts Aim to Build Wealth for Kids

Governor Kay Ivey is encouraging Alabama families to take advantage of a new federal program designed to help children begin building wealth at an early age.

Beginning July 4, 2026, Trump Accounts will be available to U.S. citizens under the age of 18. The tax-advantaged investment accounts are intended to help families save for major life expenses while teaching young people about investing and long-term financial planning.

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Governor Ivey praised the initiative, saying it gives families an opportunity to help the next generation get an early start on achieving the American Dream.

One of the program's biggest benefits is a $1,000 contribution from the U.S. Treasury for every American child born between January 1, 2025, and December 31, 2028. Officials say that initial investment can continue to grow over time through market gains and optional family contributions.

Families may contribute up to $5,000 annually to help maximize growth. Once a child turns 18, the account transfers into their control and can be used for major expenses such as purchasing a first home, pursuing higher education or other qualifying opportunities.

Supporters of the program say it not only provides a financial foundation but also helps teach children the value of investing and how money can grow over time through compound earnings.

The Office of the Governor of the State of Alabama shared details about the new program and encouraged Alabama parents and grandparents to learn more before the July launch date.

For additional information, families can complete IRS Form 4547, call 866-USA-4547 or visit the program's website.