With the recent signing of the One Big Beautiful Bill Act, many new and expecting parents are asking the same questions:
Does this apply to my child? How do I open an account? What do I need to do next?
We have done the research for you and outlined the key details below to help you understand how Trump Accounts work and whether your family may benefit.
What Is a Trump Account?
A Trump Account shares many of the traits of Individual Retirement Accounts (IRAs) but were created specifically for children under the age of 18. [irs.gov/trumpaccounts] The stated goal of the program is to “jumpstart the American Dream” by giving children an early start on long-term investing and potential compounding growth.
Although the account is opened while the child is a minor, the child is both the owner and beneficiary of the account. Because minors cannot open accounts themselves, an authorized individual must establish the account on their behalf.
To qualify as an authorized individual and receive the government’s initial pilot contribution (discussed below), the child must be considered a qualifying child for the 2025 tax year.
If you are not electing the pilot contribution, authorized individuals can include a parent, grandparent, or adult sibling.
Is My Child Eligible?
A child is eligible for a Trump Account if:
- They are under age 18 on December 31 of the year the account is established with a valid social security number
At this time, there are no income limitations, meaning eligibility is not affected by household income. [irs.gov/trumpaccounts] This also means that the account beneficiary (the minor) has the ability to contribute to the account on their own, even if they have no taxable compensation of their own.
How Do I Get Started?
To establish a Trump Account, you will need to file Form 4547 with your 2025 tax return.
- The Treasury Department will send correspondence with instructions to activate the account.
- Families will complete an authentication process to finalize setup.
- Treasury outreach and account activation are expected to begin May 2026.
How Do I Receive the $1,000 Pilot Program Contribution?
To be eligible to receive the government’s $1,000 pilot contribution, subject to meeting the program’s eligibility requirements and any applicable government terms, complete the steps below. Not all accounts will qualify.
Key details:
- Pilot contributions are expected to begin July 4, 2026
- These contributions are only available to children born between January 1st, 2025 and December 31st, 2028
- Accounts will initially be established through the Treasury Department’s designated financial agent, Bank of New York Mellon
- After the initial funding, Trump Accounts are expected to be eligible for rollovers between institutions
What Can I Contribute?
Families may contribute up to $5,000 per year per child to a Trump Account, allowing parents and relatives to continue building long-term savings beyond the initial pilot contribution.
Even if your child is not eligible for the Pilot Contribution (meaning, they were not born between 1/1/25 and 12/31/28), you can still contribute up to $5,000 per year into the account on behalf of your child. These contributions can come from parents, grandparents, the account beneficiary, or any other person. Regardless of who contributes, the maximum contribution into the Trump Account is $5,000 per year (not $5,000 per contributor).
Also of note: any contribution you make into the account during the “growth period” is not tax deductible.
When Can the Funds Be Accessed?
Trump Accounts are designed as long-term retirement vehicles, not short-term savings accounts.
Growth Period
Each account has a defined growth period, beginning when the account is established and ending on December 31 of the year before the child turns 18.
For example:
- A child born on July 1, 2025 would have a growth period ending December 31, 2042
During this growth period, funds generally cannot be accessed. The only permitted distributions are:
- A qualified rollover to another Trump Account (for example, moving institutions), or
- A qualified rollover to an ABLE account
After the Growth Period
Once the growth period ends, the account will be subject to standard traditional IRA rules, including rules around withdrawals and taxation.
Final Thoughts
Trump Accounts represent a new and unique opportunity for families to begin retirement-focused investing at birth. While the rules and implementation details are still developing, understanding eligibility, timelines, and contribution limits now can help families prepare and take advantage of the program when it becomes available.
As more guidance is released by the IRS and Treasury Department, we will continue to provide updates and clarity.
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