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What is a Trump account?

Nicolas StrautBy Nicolas StrautPublished 8 min read

Key takeaways

  • Treasury automatically enrolled eligible children in Trump accounts on or about October 1, 2026, but Treasury can't request the $1,000 deposit for children born 2025 through 2028, so a parent or guardian has to claim the account and request it.1
  • A Trump account is a traditional IRA in your child's name: family, friends, and employers can add up to $5,000 a year combined, the money must sit in low-cost US stock index funds, and nothing comes out before January 1 of the year your child turns 18.
  • A Trump account needs no earned income, unlike a custodial Roth IRA, and its withdrawals are taxed the same way as a traditional IRA's, unlike a 529 plan's tax-free college withdrawals, so a child can have one alongside those accounts.
In this article

A Trump account is a traditional IRA for a child under 18, created by the One Big Beautiful Bill Act. Family, friends, and employers can add up to $5,000 a year, and the money stays in US stock index funds until the year your child turns 18. Children born 2025 through 2028 can also get $1,000 from Treasury.

Treasury opened accounts automatically for eligible children, but a parent has to claim the account before it can take family money, and has to request the $1,000. This guide covers eligibility, claiming, the 2026 limits, withdrawals, and how a Trump account compares with a 529 plan, a custodial Roth IRA, and a UTMA.

What is a Trump account?

A Trump account is a traditional IRA opened for a child under 18, with its own rules until the year the child turns 18, under section 530A of the tax code.2 The child owns the account, the parent or other adult who opens or claims it picks the investments as the responsible party, and a bank or other IRS-approved trustee holds it.

The account's first phase, the growth period, runs until December 31 of the year before your child turns 18, and after it the account follows the rules for any traditional IRA. During the growth period, contributions aren't deductible, almost nothing can be withdrawn, and, apart from stock a charity donates, the money can go only into a fund that:

  • Tracks the S&P 500 or another index of mainly US companies, as a mutual fund or ETF
  • Doesn't use borrowed money and doesn't track a single industry
  • Charges 0.1% or less a year in fees and expenses

Who is eligible for a Trump account?

Any child who is under 18 at the end of the year the account is opened and has a Social Security number valid for employment is eligible for a Trump account, and children born 2025 through 2028 who are US citizens can also get the $1,000 deposit.3

Scroll horizontally to see more columns.
RequirementTrump account$1,000 pilot contribution
AgeUnder 18 at the end of the year the account opens (for 2026, born after December 31, 2008)Born January 1, 2025, through December 31, 2028
Social Security numberValid for employment and issued before the electionSame
CitizenshipNot requiredUS citizen
Who can electA legal guardian, parent, adult sibling, or grandparent, in that orderSomeone who expects to claim the child as a qualifying child

An older child, such as a 10-year-old, can still have a Trump account and receive family, employer, and charity money; only the $1,000 depends on the birth year.

How to claim a Trump account in 4 steps

You can claim a Trump account in 4 steps: sign in, claim the account or file Form 4547, request the $1,000 if your child qualifies, and choose an investment. If your child is eligible and didn't already have an account, Treasury probably enrolled them automatically on or about October 1, 2026, but an enrolled account still needs claiming. Until you claim it, the account can receive only charity and government contributions, so family and employers can't add money, and Treasury can't request the $1,000 for you.

Treasury sends activation emails only from [email protected], and later messages come from addresses ending in @trumpaccount.com. It never asks for passwords or one-time verification codes, and its call center is 1-866-USA-4547.

Step 1: Sign in to the Trump Accounts app or your IRS account

Sign in to the official Trump Accounts app, to TrumpAccount.com, or to your IRS online account. You'll need your child's Social Security number.

Step 2: Claim the account or file Form 4547

If your child was automatically enrolled, claim the account in the app by verifying your identity and showing you have authority to act for your child. If no account exists yet, file Form 4547 online through your IRS account or at the same time as your tax return.

Step 3: Request the $1,000 deposit

Request the $1,000 deposit, which the law calls the pilot contribution, in the app or on Form 4547 if your child was born 2025 through 2028 and is a US citizen. Treasury processes one pilot election per child and pays after it confirms the account is open.

Step 4: Choose an investment and invite family to contribute

Choose an eligible index fund, then invite family to contribute and ask your employer whether it offers a Trump account program. Employer money for an employee's child is tax-free to the employee up to $2,500 a year.

2026 Trump account contribution limits

The 2026 Trump account contribution limit is $5,000 per child, combined across family, friends, the child, and employers, and the $1,000Treasury deposit and charity or government money come on top of it.4

Scroll horizontally to see more columns.
Money going in2026 limitCounts toward the $5,000?
Parents, relatives, friends, and the child$5,000 combined per childYes
Employer contributionUp to $2,500 a year, tax-free to the employeeYes
Treasury pilot contribution$1,000 once, for children born 2025 through 2028No
State, local, or tribal government, or charitySet by the donor and split equally across a group of childrenNo
Transfer of a whole Trump account to a new trusteeThe full balanceNo
  • No contributions were allowed before July 4, 2026.
  • The $5,000 and $2,500 limits rise with inflation for years after 2027.
  • Contributions count in the calendar year you make them, with no April deadline for the prior year.
  • An excess over $5,000 can be taken back out, with an extra tax equal to its earnings.

For example, say an employer puts in $2,500 in 2026 and grandparents add $1,500, so parents can add $1,000 before the account reaches $5,000. The $1,000 Treasury deposit goes in on top, for $6,000 in total.

When can you withdraw from a Trump account?

You can withdraw from a Trump account starting January 1 of the year your child turns 18. Before then, money can leave the account in only four ways: a transfer of the whole balance to a new Trump account, a rollover to your child's ABLE account in the year they turn 17, removal of an excess contribution, or after the child's death.

What changes in the year your child turns 18

From January 1 of the year your child turns 18, the growth period is over and the account follows the rules for any traditional IRA. For example, a child born October 1, 2025, can start withdrawals in January 2043, the year they turn 18. Withdrawals before 59½ then carry the 10% additional tax unless an IRA exception applies, such as higher education costs or up to $10,000 for a first home, and job training and starting a business are not on that list.

Which Trump account withdrawals are taxed

Trump account withdrawals are taxed as ordinary income, except for the part that came from after-tax family contributions. Each withdrawal is part basis and part taxable, in proportion, and Roth vs traditional IRA explains how that differs from a Roth. In the 2026 example above, $2,500 of the $6,000 deposited is basis, and the other $3,500 plus all the growth is taxed when it comes out.

Scroll horizontally to see more columns.
Money in the accountTaxed when withdrawn?
Contributions from parents, relatives, friends, or the childNo, these are after-tax basis
Employer contributionsYes
The $1,000 Treasury depositYes
Charity or government moneyYes
Investment earningsYes

Trump account benefits and drawbacks

Trump account benefits are free federal and employer money, no earned income requirement, and low-cost index funds, and the drawbacks are no tax deduction, money locked until the year your child turns 18, and taxable withdrawals after that.

Trump account benefits

  • Children born 2025 through 2028 can get $1,000 from Treasury, which no other child's account offers
  • No earned income is needed, so a newborn can have one, unlike a custodial Roth IRA
  • Employer contributions of up to $2,500 a year stay out of the employee's taxable income
  • Fund fees are capped at 0.1% a year, and the account has its own limit, separate from any IRA your child opens later

Trump account drawbacks

  • Contributions get no tax deduction before the year your child turns 18
  • The money can't be spent before January 1 of that year, even on college costs at 17
  • After that, withdrawals are taxed as income except for family basis, plus the 10% additional tax before 59½ unless an exception applies
  • Until then your contributions go only into US stock index funds, with no bonds or international funds

Trump account vs a 529 plan, custodial Roth IRA, and UTMA

A Trump account differs from a 529 plan, a custodial Roth IRA, and a UTMA account in four ways: who can put money in and how much, what the money can be used for, how it's taxed, and who controls it.5

Scroll horizontally to see more columns.
Trump account529 planCustodial Roth IRAUTMA account
Who can fund itAnyone, up to $5,000 a year combined, plus the $1,000 and charity moneyAnyone; no federal yearly limit; a donor's gifts above $19,000 to one child in 2026 go past the gift tax annual exclusionUp to the child's earned income, at most $7,500 in 2026Anyone; each deposit is a permanent gift to the child
What the money is forAnything, from January 1 of the year the child turns 18Qualified education; up to $35,000 lifetime can roll to the child's Roth IRARetirement; contributions can come out any timeAnything that benefits the child
How it's taxedNo deduction; withdrawals taxed except family basisNo federal deduction; tax-free for qualified educationNo deduction; qualified withdrawals tax-freeEarnings taxed yearly, and the kiddie tax can apply above a threshold
Who controls itThe responsible party, then the child after the growth periodThe 529 account ownerThe custodian, then the child at your state's ageThe custodian, then the child at your state's age
  • Consider a 529 plan if the money is meant for school.
  • Consider a custodial Roth IRA if your teenager has a paycheck; best IRA accounts compares where to open one.
  • Consider a UTMA account for money your child can spend on anything at your state's age.
  • Consider a Trump account for long-term money, especially if your child qualifies for the $1,000.

A Trump account doesn't count toward the IRA limit before the year your child turns 18, so a teenager with earned income can fund both. Our Schwab IRA review covers Schwab's custodial IRA for that teenager.

Frequently asked questions about Trump accounts

Why is it called a Trump account?

It's called a Trump account because that's the name Congress gave it in section 530A of the tax code, which the One Big Beautiful Bill Act added in July 2025. The IRS and Treasury use the same name, and the IRS refers to the law as the Working Families Tax Cuts.

What is the official Trump Accounts website?

The official Trump Accounts website is trumpaccounts.gov, Treasury's program page, and you claim and manage an account in the Trump Accounts app or at TrumpAccount.com. The IRS covers Form 4547 elections at irs.gov/trumpaccounts. Type those addresses yourself, and don't follow a link in an email or text you weren't expecting.

Who runs Trump accounts, the IRS or Treasury?

Both run Trump accounts, under section 530A of the tax code. Treasury runs the Trump Accounts app, enrolls eligible children automatically, and pays the $1,000 deposit, while the IRS takes Form 4547 elections and issues the guidance, starting with Notice 2025-68. A bank or other IRS-approved trustee holds each child's account.

Can you move a Trump account to another brokerage?

Yes, the law lets you move a Trump account to another trustee, but only as a direct transfer of the entire balance into a new Trump account for the same child. A partial transfer, or a withdrawal you redeposit yourself, doesn't qualify during the growth period. Ask the current trustee whether it accepts transfer requests yet.

Can my child contribute to their own Trump account?

Yes, your child can contribute to their own Trump account once it has been claimed. The account itself has no earned income rule, unlike a Roth IRA, so any money your child puts in counts toward the same $5,000 yearly limit as family and employer contributions.

Sources

  1. https://trumpaccounts.gov/
  2. https://www.law.cornell.edu/uscode/text/26/530A
  3. https://www.irs.gov/instructions/i4547
  4. https://www.irs.gov/newsroom/treasury-irs-issue-guidance-on-trump-accounts-established-under-the-working-families-tax-cuts-notice-announces-upcoming-regulations
  5. https://www.law.cornell.edu/uscode/text/26/529

This page describes federal Trump account rules under IRC §530A as of October 2026. The IRS has not finished its Trump account regulations, and state rules govern 529 plans and UTMA accounts. Tweed provides educational estimates, not financial advice. Confirm your specific situation with a qualified tax professional.

Nicolas Straut
Nicolas Straut

Personal finance writer, former Forbes contributor and This Week in Fintech writer. He isn't a financial advisor or a CPA.

nicstraut.com

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