What is a Trump Account?
If you have a young child or one on the way, there’s a new kind of savings account worth knowing about. Trump Accounts are tax-deferred investment accounts opened in a child’s name, operating much like a custodial IRA. The goal is to kickstart early contributions and learn healthy investing habits. The government is helping fund with seed money your child may qualify for. Here’s our walkthrough of how they work, who qualifies, and what to do if you’d like to set one up.
Who qualifies?
The account is open to U.S. citizens under the age of 18 who have a valid Social Security number.
There’s an added incentive for newborns: children born between 2025 and 2028 will receive a $1,000 seed investment from the federal government to open their account. On top of that, the first 25 million American children under the age of 11 and living in low-to-middle-income areas will receive an additional $250. Those areas are defined as ZIP codes with median household incomes below $150,000.
Who can contribute, and how much?
The White House lists children, parents and guardians, grandparents, other family members, friends, and employers as eligible contributors.
A few limits to keep in mind:
- The annual contribution limit is $5,000, and the $1,000 federal seed investment does not count against it.
- Employers may contribute up to $2,500 per year as pre-tax, salary-reduction contributions.
- Contributions from qualifying charitable organizations do not count toward the annual limit.
There are also rules about where the money goes. Contributed funds can only be invested in broad U.S. equity index funds with annual fees no higher than 0.1%.
When can the money be accessed?
This is a long-term account, and the withdrawal rules reflect that.
The account holder can begin accessing funds at age 18, but only under the same exceptional circumstances that apply to a traditional IRA. Any other withdrawal before age 59½ is subject to an additional 10% tax. Before the child turns 18, funds generally cannot be withdrawn at all, the one exception being a trustee-to-trustee transfer.
How do you sign up?
For our clients who had a newborn in 2025, we’ve already handled this: IRS Form 4547 – Trump Account Election(s) was completed alongside your 2025 tax return, so you’re set.
If you didn’t file your 2025 return with us or if your child is currently under the age of 18, you can still sign up. The election to establish a Trump Account can be made at any time directly at trumpaccounts.gov.
How do you contribute and manage the funds?
Once Form 4547 is filed, the next step is to register through the Trump Account app, which is downloadable through the App Store or Google Play. Your election is then processed and activated with the Treasury’s designated financial agent, Robinhood, which serves as the sole initial trustee. Funds may be transferred to a brokerage firm of your choosing at a later date, though that date hasn’t been announced yet.
To get a feel for what that growth might look like, trumpaccounts.gov offers projections based on different annual contribution amounts. Keep in mind those figures are estimates built on the S&P 500’s historical performance and are not guaranteed.
A built-in financial education tool
The Trump Account app aims to make financial education more accessible through 15 interactive learning modules. They’re designed for both parents and children and cover topics such as diversification, compound growth, and more.
Questions?
For specific questions and instructions, resources are available at www.irs.gov/trumpaccounts, www.trumpaccounts.gov, or the Trump Account call center at 866-USA-4547.
Sources
- The White House. (2025, December 2). Landmark Dell Gift supercharges Trump Accounts for America’s kids. whitehouse.gov
- Trump Accounts. (n.d.). Trump Accounts — The American Dream Starts Now. trumpaccounts.gov
- U.S. Department of the Treasury. (2026, July 4). U.S. Treasury announces the official launch of Trump Accounts and full scope of the app. home.treasury.gov
