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JUANA SUMMERS, HOST:
This tax season, parents of young Americans can opt to establish a Trump Account. That is the actual name of a new account that has a lot of similarities to individual retirement accounts for children. It was created in the massive tax and spending law last summer. When the program goes live this summer, the federal government has pledged a $1,000 contribution into the Trump Accounts of eligible kids. Here to walk us through all of this is Ron Lieber. He writes the Your Money column for The New York Times. Hi there.
RON LIEBER: Hello.
SUMMERS: Ron, let's just start with some basics if we can. Who is eligible for a Trump Account?
LIEBER: So the people who are eligible are children under the age of 18. If you want that $1,000, that's only for babies who are born between January 1, 2025, and the end of 2028.
SUMMERS: If you have kids or you're expecting a child, how exactly do you sign up for one?
LIEBER: You can check a box on the tax form that you are filing this season. Now, you don't have to do that. You can set it up some other time in the coming months, but that is one easy way to do it while you're filing your taxes.
SUMMERS: Say you're a parent and you decide to open a Trump Account for your kid, where does the initial money go?
LIEBER: It is not 100% clear yet where the money is going to land. The administration is engaging in partnerships with different financial services firms. And so sooner rather than later, we will know which ones those are and what kind of choices you may have.
SUMMERS: And who can contribute to these Trump Accounts? And I wonder, do we know if there's a cap on how much money you can put in?
LIEBER: Parents control the account, or a guardian. But it's not just parents who can put money in and not just the federal government. There may be some employers who offer contributions. Outside philanthropists have some interest in these accounts. And so we'll see how it rolls out in that way.
SUMMERS: So that's how the money gets in. But when can a child or their parent or guardian access the money?
LIEBER: It is locked up until you turn 18. And at that point, it belongs to the 18-year-old. And they can use it for anything at that point.
SUMMERS: I mean, Ron, we know that the United States offers other tax-deferred investment vehicles, and some of those are specifically for kids. I'm thinking about 529 plans for education, Roth IRAs, 401(k)s. The list goes on. How do Trump Accounts compare to some of the other options that are out there?
LIEBER: You are correct to note that we have a kind of alphabet soup of savings options in this country. And so one way to think about this is that - let's say you want to open a 529. The advantage there is that that comes with tax breaks that the Trump Accounts do not have. And there may be other savings vehicles that, you know, families want to use that could have more flexibility, particularly in the years when a child is under 18.
SUMMERS: I mean, listening to you describe this, this sounds sort of like a free $1,000 from the government for certain parents. Would a person be - I don't know - silly or foolish not to opt in?
LIEBER: You would indeed be foolish not to opt in if you've got a kid who is eligible for the $1,000 or some other amount of money that a philanthropist or an employer might toss into the account. Look, it's free money. Anybody who's eligible should go get it.
SUMMERS: And say you don't qualify for that $1,000, in your mind, in this still a good investment strategy compared to some of the other options?
LIEBER: So they may want to open those accounts if an employer or a philanthropist wants to put some free money in, sure. Beyond that, there may be better options. But much depends on your family and its circumstances. Any savings account is only useful if you have money left over. And chances are the people who are going to have thousands of dollars to toss into an account like this are people who have more money than average, because if you don't have more money than average, you're spending it on everyday items just to keep the roof over your head.
SUMMERS: Ron Lieber writes the Your Money column for The New York Times. Ron, thank you.
LIEBER: Sure thing. Copyright © 2026 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information. Accuracy and availability of NPR transcripts may vary. Transcript text may be revised to correct errors or match updates to audio. Audio on npr.org may be edited after its original broadcast or publication. The authoritative record of NPR’s programming is the audio record. Facebook Flipboard Email Read & Listen Home News Culture Music Podcasts & Shows Connect Newsletters Facebook Instagram Press Public Editor Corrections Transcripts Contact & Help About NPR Overview Diversity NPR Network Accessibility Ethics Finances Get Involved Support Public Radio Sponsor NPR NPR Careers NPR Shop NPR Extra Terms of Use Privacy Your Privacy Choices Text Only Sponsor Message Sponsor MessageBecome an NPR sponsor (function () { var loadPageJs = function () { (window.webpackJsonp=window.webpackJsonp||[]).push([[22],{1167:function(e,n,c){e.exports=c(323)},323:function(e,n,c){"use strict";c.p=NPR.serverVars.webpackPublicPath,Promise.all([c.e(1),c.e(2),c.e(3),c.e(4),c.e(84)]).then(function(e){c(3),c(1140),c(116),c(94),c(52),c(493),c(239),c(102),c(104),c(1141),c(143),c(1142),c(238),c(48),c(1143)}.bind(null,c)).catch(c.oe)}},[[1167,0]]]); }; if (document.readyState === 'complete') { loadPageJs(); } else { window.addEventListener('load', function load() { window.removeEventListener('load', load, false); loadPageJs(); }); } })();