What to know about the new Trump accounts for kids

A Trump account is a new type of IRA established as part of the One Big Beautiful Bill Act. To open a Trump account, your child must have a Social Security number and be a U.S. citizen under 18 years old on December 31 of the year the account is opened. Each child may have only one Trump account. 

Parents and legal guardians can open Trump accounts for eligible children by submitting IRS Form 4547 at any time, or by using an online portal scheduled to be available by the summer of 2026. (You may want to consider filing Form 4547 with your 2025 tax return so your account is available for use in July 2026.)

To learn more, you can sign up for updates at trumpaccounts.gov.

Trump accounts will be available in 2026. Contributions, however, can’t be made before July 4, 2026.

Individuals, employers, and government and charitable entities can contribute.

Individuals and employers can contribute up to a total of $5,000 per child per year. Unlike other types of IRAs, Trump accounts do not require individuals to have earned income or restrict contributions based on total income.

Additional contributions may be available from other government entities and charitable organizations, which do not count toward the $5,000 contribution limit. Through a pilot program, for instance, the federal government has promised to contribute $1,000 to each account for children born between January 1, 2025, and December 31, 2028.

Annual contributions to Trump accounts in years before children turn 18 do not affect how much they can contribute to other IRAs. For example, teenagers with jobs may have earned income that allows them to contribute to a traditional or Roth IRA—which does not reduce the amount they can contribute to a Trump account for that year.

Funds in a Trump account may be invested only in certain eligible investments, which are generally low-cost stock index mutual funds or ETFs whose underlying securities are composed of predominantly U.S.-based companies. All investments must meet criteria established by the U.S. Treasury Department.

Generally, no withdrawals are allowed from these accounts during the “growth period”—basically, until the year the child turns 18. Beginning in the year the child turns 18, the account is subject to most of the same contribution and withdrawal rules that govern traditional IRAs.

There is one key difference: If an investor keeps the Trump account separate from other IRAs upon turning 18, it won’t be combined with other IRAs when calculating taxes and penalties on withdrawals. This may provide investors with beneficial financial planning flexibility in deciding which type of account to use for withdrawals or Roth IRA conversions. 

Contributions from individuals are made on an after-tax basis, meaning that upon withdrawal, only the earnings on these contributions are subject to income tax and possible penalty.

Contributions from other sources are made on a pre-tax basis, meaning that upon withdrawal, the full value of the contributions and earnings from these sources is subject to income tax and possible penalty.

Investments grow tax-deferred, so no tax is due on the account proceeds until funds are withdrawn. 

Trump accounts may be able to improve children’s lifelong financial security in several ways:

• They provide an opportunity for children and their families to gain real-world experience with saving and investing.

• Contributed funds may grow substantially by the time a child turns 18, especially for those who receive the $1,000 pilot contribution from the federal government.

• Contributions from sources outside the household—including employers, governments, and charitable organizations—can further enhance a child’s long-term financial position.

• Working teens can get a head start on their financial future by having both a Trump account and an IRA.

There are already many ways to save for your child’s future, depending on individual circumstances, goals, and liquidity needs. Some of the most popular are 529 plans (for educational goals), Roth IRAs (for children with earned income), Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) accounts, and parental savings transferred via gifts or inheritance, all of which have different rules for contributions, withdrawals, and taxation.

Trump accounts are designed to complement these other saving options. For many people, they will be an additional way to put aside money for a child—an “and” rather than an “or.” In short, establishing a Trump account for your children is a new option to set them up for long-term financial success, as part of your family’s broader plan for saving for their futures.

Learn more and get updates at trumpaccounts.gov.