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 Traditional IRAs, but they have special rules while the child is under 18. The child owns the account, and an authorized adult generally manages it until the child reaches adulthood.
Who qualifies for a Trump Account?
A Trump Account can be established for a child who:
Has a valid Social Security number
Will not turn 18 before the end of the calendar year in which the account is established
The child does not need to be a U.S. citizen to qualify for an account, but U.S. citizenship is required for the $1,000 government contribution.
Important:
Only one initial Trump Account per child is allowed
If you have multiple children, eligibility for the $1,000 government contribution is determined separately for each child
Do I need to opt in?
Starting October 1, 2026, the U.S. Treasury began automatically opening Trump Accounts for eligible children.
If your child already has an account, you don’t need to submit an election to open another one. However, you must claim and activate the account to manage it and make personal contributions.
The $1,000 government contribution is not automatic. You must request it separately if your child qualifies.
Pilot program: $1,000 government contribution
As part of a pilot program, the federal government provides 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 valid Social Security numbers
Have a Trump Account
Key things to know:
No family contribution is required to receive the $1,000
You must elect to receive the government contribution using Form 4547
The $1,000 does not count toward the annual contribution limit
You can request the contribution through the Trump Accounts app, the Trump Accounts website, or your IRS Individual Online Account.
Who can contribute, and how much?
Contributions to Trump Accounts began on July 4, 2026.
During the child’s growth period, the general annual contribution limit is $5,000 per child.
Contributors may include:
Parents or guardians
Family members
Friends
Employers
Other individuals
Multiple people can contribute to the same account, as long as the combined contributions subject to the limit don’t exceed $5,000 per year.
Additional rules:
Employers can contribute up to $2,500 annually under qualifying employer programs. These contributions count toward the $5,000 limit.
The $1,000 government contribution, certain government and charitable contributions, and qualifying rollovers do not count toward the $5,000 limit.
The child does not need earned income to receive contributions during the growth period.
How are Trump Account funds invested?
Trump Accounts are held by an authorized financial institution.
During the child’s growth period, funds must be invested in eligible low-cost investments that track a broad U.S. stock market index.
These investments are designed for long-term growth, but their value can rise or fall with the market.
Who controls the account before age 18?
The child owns the Trump Account from the beginning, but an authorized adult generally manages it while the child is a minor.
During this period:
The adult manages the account and eligible investments
Withdrawals are generally restricted
Contributions can continue, subject to annual limits and other program rules
What happens when the child turns 18?
The account enters a new phase in the calendar year the child turns 18.
At that point:
The special childhood account rules generally end
Traditional IRA rules generally apply
The account holder can continue investing or make withdrawals, subject to applicable tax rules
The child already owns the account before turning 18. Turning 18 changes how the account is managed and which rules apply.
How can the money be used after age 18?
Once traditional IRA rules apply, the account holder can withdraw money, but withdrawals may be subject to income taxes and an additional 10% early-withdrawal tax.
Certain exceptions may allow withdrawals without the additional 10% tax, including qualifying:
Higher education expenses
First-time home purchases, subject to IRS limits
Other exceptions may also apply.
Important: Turning 18 does not automatically make withdrawals tax-free or penalty-free. Starting a business is not, by itself, a general exception to the early-withdrawal tax.
The amount of a withdrawal that’s taxable depends in part on the source of the contributions and other IRA tax rules.
How do I open or claim a Trump Account?
The U.S. Treasury began automatically opening Trump Accounts for eligible children in October 2026.
To claim your child’s account:
Visit TrumpAccounts.gov or use the official Trump Accounts app
Follow the instructions to verify your identity and your authority to manage the account
Claim and activate the account
If your child qualifies for the $1,000 government contribution, you must also request it using IRS Form 4547.
For the latest instructions, visit the IRS Trump Accounts page.
What’s still evolving?
Because Trump Accounts are new:
Additional IRS guidance may be issued
Account administration and contribution procedures may change
Financial institutions and available account services may evolve
Check TrumpAccounts.gov and IRS guidance for the latest information before opening, claiming, or funding an account.
Key takeaway
Trump Accounts are tax-advantaged savings accounts for eligible children. Contributions began July 4, 2026, and the government provides a one-time $1,000 contribution for qualifying children.
Children own their accounts, while authorized adults generally manage them during childhood. Once the child reaches adulthood, traditional IRA rules generally apply, including taxes and possible penalties on withdrawals.
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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