Congress created Trump Accounts, the first federal child savings accounts in the U.S., as part of the One Big Beautiful Bill Act, which President Trump signed in 2025. Contributions officially opened on July 4, 2026. Any child who hasn’t turned 18 and has a valid Social Security number is eligible, and a one-time $1,000 federal deposit is available for qualifying newborns born between 2025 and 2028.<\/p>\n\n\n\n
A Trump Account is a type of traditional IRA that can be opened for any child who has a Social Security number, as long as the account is established before the calendar year in which the child turns 18. An individual can only have one funded Trump Account. Accounts can be opened by submitting Form 4547 at irs.gov\/trumpaccounts<\/a> or TrumpAccounts.gov<\/a>.<\/p>\n\n\n\n The Treasury Department refers to the period between account opening and January 1 of the year in which the beneficiary turns 18 as the “growth period.” During this time, investments must track a broad index of primarily U.S. equities, avoid leverage, and carry fees no higher than 0.1%.<\/p>\n\n\n\n After the growth period (i.e., on January 1 of the year in which the beneficiary turns 18), the Trump Account becomes a standard traditional IRA.<\/p>\n\n\n\n The rules establish a priority order for who may open a Trump Account on a child’s behalf: legal guardian first, followed by parent, adult sibling, or grandparent of the beneficiary.<\/p>\n\n\n\n Beginning in July 2026, individuals, employers, nonprofits, and governments can contribute to Trump Accounts. Individual and employer contributions are subject to a $5,000 combined annual limit, adjusted for inflation after 2027. Contributions from nonprofits and governments are not limited.<\/p>\n\n\n\n Individual Contributions<\/strong><\/p>\n\n\n\n Individual contributions (from parents, family members, and others) are made with after-tax dollars and not tax-deductible. Contributions themselves are not taxed upon withdrawal, but investment returns, which compound tax-free within the account, are taxed as ordinary income once realized.<\/p>\n\n\n\n Employer Contributions<\/strong><\/p>\n\n\n\n Employers can contribute to the Trump Account of a minor employee or an adult employee’s dependent. These contributions are not counted as taxable income for the employee, and the employer can deduct them as part of compensation expenses. Employers can contribute up to $2,500 annually per employee, and these contributions count toward the overall $5,000 account contribution limit.<\/p>\n\n\n\n Nonprofit and Government Contributions<\/strong><\/p>\n\n\n\n Governments and nonprofits can contribute through the Treasury Department, and such contributions must be made in equal amounts to the Trump Accounts of every beneficiary living in a given geographic area or born in a given year. These contributions are not regarded as taxable income for the beneficiary. As with employer contributions, investment returns grow tax-free, and withdrawals are taxed as ordinary income.<\/p>\n\n\n\n Unlike traditional and Roth IRAs, Trump Account contributions aren’t limited to the child’s earned income, so a child doesn’t need a job to receive contributions.<\/p>\n\n\n\n Children born during calendar years 2025-2028 who are U.S. citizens are eligible for a one-time $1,000 federal government contribution to their Trump Account. This contribution can be claimed at any point during the growth period (i.e., from birth through December 31 of the year in which the beneficiary turns 17). Pilot program contributions don’t count against the $5,000 annual limit.<\/p>\n\n\n\n Only individuals who can claim a child as a dependent for tax purposes can claim the $1,000 contribution for that child.<\/p>\n\n\n\n During the growth period, money can’t be withdrawn from Trump Accounts under any circumstances (except death of the account beneficiary).<\/p>\n\n\n\n After the growth period, the Trump Account becomes a traditional IRA with standard IRA limitations on distributions. Taking distributions before reaching age 59\u00bd will incur a 10% penalty unless used for an excepted purpose, such as education, first-time homebuying, or disaster recovery, up to specified dollar-amount limits. Regardless of when distributions are taken, the tax treatment will be complex, with different portions taxed differently.<\/p>\n\n\n\n There is one major exception: in the year in which the beneficiary turns 17 (i.e., in the last year of the growth period), eligible families can transfer the assets in a Trump Account to an ABLE account.<\/p>\n\n\n\nWho can open a Trump Account?<\/h2>\n\n\n\n
What are the contribution rules?<\/h2>\n\n\n\n
What about the $1,000 pilot program?<\/h2>\n\n\n\n
What can Trump Accounts be used for?<\/h2>\n\n\n\n
How do Trump Accounts compare to other savings vehicles?<\/h2>\n\n\n\n