A Trump Account is a new type of tax-advantaged savings account created under the Working Families Tax Cuts legislation. It’s designed to help families build long-term savings for children.
Trump Accounts work similarly to a traditional IRA, but they’re opened for qualified children and managed by an adult until the child turns 18.
Who qualifies for a Trump Account?
A Trump Account can be opened for a qualified child if all of the following are true:
The child has not turned 18 by the end of the year the account is opened
The child is a U.S. citizen
The child has a valid Social Security number
The account is opened by a parent, guardian, or other authorized individual
Only one Trump Account can be opened per child.
Pilot program: $1,000 government contribution
As part of a pilot program, the federal government will make a one-time $1,000 contribution for eligible children who:
Were born between January 1, 2025, and December 31, 2028
Are U.S. citizens with a valid Social Security numberHave a Trump Account properly established
No family contribution is required to receive this $1,000.
Who can contribute, and how much?
While contributions aren’t required, families and others can add money to help the account grow.
Annual contribution limit: Up to $5,000 per child per year
Who can contribute:
Parents or guardians
Family members
Friends
Employers
Multiple people can contribute to the same account, as long as the annual limit isn’t exceeded.
How are Trump Account funds invested?
Once opened, the account is held by a participating financial institution, which:
Activates the account
Invests the funds
Manages the account until the child turns 18
Funds are invested in a diversified portfolio of low-cost index funds, designed to support long-term growth while managing risk.
Who controls the account before age 18?
Until the child turns 18:
An adult manager (such as a parent or guardian) controls the account
The child does not have access to withdrawalsContributions can continue each year, up to the annual limit
What happens when the child turns 18?
When the child turns 18, the Trump Account becomes fully theirs.
At that point:
The child takes over full ownership and control
They can continue letting the account grow, or
They can begin withdrawing funds
How can the money be used after age 18?
Funds can be accessed without penalty once the child turns 18 for qualified purposes, including:
Education expenses
A first home purchase
Starting a business
Withdrawals:
Are generally taxed at ordinary income rates
May be subject to program rules or restrictions
The tax treatment is intended to mirror the advantages of a traditional IRA.
How do I open a Trump Account?
You’ll be able to open a Trump Account in one of two ways:
When you file your 2025 federal tax return, or
Through an online portal expected to launch by summer 2026
A participating financial institution will receive your election, fund the account, and activate it.
For the most up-to-date details, eligibility rules, and launch timing, check:
What’s still evolving?
Because Trump Accounts are new:
Some operational details may change
Financial institutions and rollout timing may expand
Additional IRS guidance may be issued
Always check TrumpAccounts.gov and IRS guidance for the latest updates before opening or funding an account.
Key takeaway
Trump Accounts are long-term savings accounts for qualified children, designed to grow over time with tax advantages similar to a traditional IRA. Adults manage and fund the account until the child turns 18, at which point the account becomes fully theirs, with penalty-free access for qualified uses like education, a first home, or starting a business.
This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.
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