Trump Accounts are a new type of individual retirement account established for the benefit of a child. During the years before the child turns 18, the account follows special rules governing who can contribute, how the funds can be invested, and when money can leave the account.
Who can have an account?
An authorized person can elect to establish an account for an eligible child under age 18 with a valid Social Security number. The election is made using Form 4547 or the available online process.
A separate pilot program provides a one-time $1,000 Treasury contribution for an eligible U.S.-citizen child born in 2025 through 2028 who has a Social Security number and satisfies the other requirements. The election for that contribution must be made; it is not automatic.
How contributions work
Contributions could not begin before July 4, 2026. In general, authorized contributions from individuals and employers are capped at a combined $5,000 per year during the growth period. The $1,000 federal pilot contribution and certain qualifying government or nonprofit contributions do not count against that limit.
An employer may contribute under a qualifying written program. Up to $2,500 per employee can generally be excluded from the employee’s income in 2026, and employer contributions count toward the $5,000 annual account limit.
The $1,000 pilot deposit is narrower than account eligibility: a child may qualify for an account without qualifying for the federal contribution.
Investment and withdrawal restrictions
During the growth period, investments generally must be eligible low-cost mutual funds or exchange-traded funds that track a broad index of primarily U.S. companies. Distributions before the growth period ends are tightly restricted, with limited exceptions such as certain rollovers, excess-contribution corrections, and distributions after the beneficiary’s death.
Starting January 1 of the year the child turns 18, most traditional IRA rules generally apply. A distribution may be taxable and may face the 10% additional tax on early distributions unless an exception applies, such as a qualifying higher-education expense or first-home purchase.
Questions to ask before funding
- Does the child qualify for the $1,000 pilot contribution?
- Will family and employer contributions stay within the coordinated annual limit?
- Does the long withdrawal restriction fit the family’s goal?
- How does the account compare with a 529 plan or custodial account?
- Who will retain contribution and basis records?
Treasury and the IRS have issued guidance and proposed regulations. Families and employers should check current requirements before opening or funding an account.
The IRS maintains a current Trump Accounts resource hub, and the Form 4547 instructions cover eligibility and elections.
This article reflects federal guidance available as of September 6, 2026, and provides general educational information—not tax, legal, or investment advice. Proposed rules may change before becoming final.