Trump Accounts Are Here

On July 5, 2026, Trump Accounts joined 529 plans, UGMA/UTMA accounts, and custodial Roth IRAs as a way to save for children. 

What is a TRUMP Account?

TRUMP Accounts are starter IRAs for children. They are designed to help families start saving and investing for a child’s future early. They operate in a “custodial-style structure”: although the assets are owned by the child, an adult (i.e., a parent or guardian) is authorized to act on the child’s behalf until the child, as beneficiary, reaches the age of 18. Upon turning 18, the child takes over management of the account. This includes the ability to make investment decisions and withdrawals. However, withdrawals can be limited. See the section on withdrawals below.

Children under age 18 with a Social Security number are eligible for Trump Accounts. The Treasury’s pilot program provides for a one-time $1,000 seed contribution from the US government for US citizens born between January 1, 2025, and December 31, 2028, when a tax election is filed on the child’s behalf. Only one funded Trump Account is allowed per child.

The Treasury Department will create and administer the initial accounts. Over time, families will be able to roll over the account to a financial provider that has a TRUMP Account product.

Are contributions to a TRUMP Account required after the account is set up?

No. Contributions are not necessary. However, you can deposit up to Five Thousand Dollars ($5,000) per year to maximize growth.

Who can contribute to a TRUMP Account?

TRUMP Accounts can be funded from a number of sources including inpiduals, employers, and charitable organizations.

How much can be contributed to a TRUMP Account?

The total that can be contributed to a TRUMP Account is Five Thousand Dollars ($5,000) per year (indexed for inflation after 2027). However, the $1,000 government seed amount and qualified general contributions (i.e., from charitable organizations) are not counted toward the annual limit.

An employer may choose to contribute up to Two Thousand Five Hundred Dollars ($2,500) per employee (indexed for inflation after 2027). If an employee has multiple children, the employer may split the contribution among the children.

TRUMP Accounts are distinctive in that they do not require earned income to be able to make inpidual contributions.

If I contribute to a child’s Trump account, will I have to file a Gift Tax Return?

No. The Internal Revenue Service has issued Revenue Procedure 2026-25 which provides a “Safe Harbor” for Trump account contributions.

When can withdrawals be made from TRUMP Accounts?

TRUMP Accounts are designed for long-term savings so withdrawals are highly restricted. Before the age of 18, distributions are generally not allowed except for limited rollovers or death.

On January 1 of the year the beneficiary turns 18, the account could transition to a standard traditional IRA. However, this is not a requirement and will be dictated by the terms of the IRA agreement with the custodian or trustee. The standard withdrawal rules for traditional IRAs will apply. These include a limit on withdrawals before age 59½. Early withdrawals are typically taxable and may face a 10% penalty unless an exception applies including certain education expenses, first-time home purchase (up to $10,000), birth or adoption costs (up to $5,000), qualifying medical expenses, disability, or terminal illness.

What are the investment options for a TRUMP Account?

The investment options for TRUMP Accounts are limited to Mutual Funds or Exchange Traded Funds (“ETFs”) that track the S&P 500 or another equity index with at least 90% invested in US companies. Any such fund must have an Expense Ratio Cap (i.e., the ceiling of how high the fund’s expense ratio can be before additional costs are added) of 0.10%.

How do I set up a TRUMP Account?

You will have to file a Form 4547 Form 4547 (December 2025)

You can do this online at Trump Accounts - Jumpstarting the American Dream

to set up a TRUMP Account.

You will need to provide your child’s Social Security number and date of birth.