Trump Accounts, the federal savings program depositing one thousand dollars into accounts for eligible newborns, launched July 4, triggering an immediate custody battle among US brokers. The accounts function as custodial traditional IRAs for children under 18, created under tax legislation President Trump signed in July 2025. Treasury operates the platform initially, but families can execute trustee-to-trustee transfers to private brokers without tax consequences, making rollovers the central competitive prize.
Robinhood built the technology infrastructure and provides customer service, positioning the firm as initial trustee with first access to millions of account holders. However, Fidelity, Charles Schwab, Vanguard, and Bank of America have all secured approval as custodians, offering index funds within the mandated 0.10 percent fee cap. Fidelity and Schwab have already published transfer guides. Corporate America is also engaged, with Micron committing 250 million dollars and the Dell family pledging 6.25 billion dollars in supplemental grants, though these contributions do not determine final custody.
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Brokers should immediately activate client outreach campaigns targeting new parents, as early custody relationships may lock in retirement assets for decades.
Source: Finance Magnates