Trump Accounts: The Complete Guide
A Trump Account is a tax-advantaged savings and investment account for a child, created under Internal Revenue Code Section 530A by the 2025 budget law. In everyday terms, it works much like a traditional IRA opened for a child: money is invested in low-cost funds that track U.S. stocks and grows tax-deferred over the long term. The program launched nationwide on July 4, 2026.
Independent resource: we are not the government and cannot open an account for you. This guide explains the program and links to official sources so you can verify everything.
Key facts at a glance
- Who can have one: a child under 18 with a valid Social Security number, managed by a parent or guardian.
- Government contribution: a one-time $1,000 for eligible U.S. citizen children born 2025–2028.
- Annual limit: $5,000 per child for 2026–2027 (indexed for inflation afterward).
- Employers: may contribute up to $2,500 per employee within that $5,000 cap.
- Investments: low-cost funds tracking the S&P 500 or another primarily U.S. equity index.
- Access: generally no withdrawals before January 1 of the year the child turns 18.
Who is eligible?
It helps to separate two questions. First, who can have an account: generally any child under 18 with a valid Social Security number. Second, who also receives the one-time $1,000 government contribution: U.S. citizen children born from January 1, 2025 through December 31, 2028, when the election is made for them. Read the full breakdown on our eligibility guide.
How Trump Accounts work
A parent or guardian opens the account by making an election on IRS Form 4547, contributions are added up to the annual limit, the balance is invested in index funds, and the money is generally accessed once the child reaches adulthood. See the step-by-step walkthrough in how Trump Accounts work.
The $1,000 government contribution
The federal government makes a single $1,000 deposit into the account of each eligible child under a pilot program. It is one-time, not annual, and has narrower rules than the account itself. Details are on the eligibility page.
Contribution limits
Most contributions share a $5,000 annual cap per child. Employers may add up to $2,500 per employee within that cap. Learn more in the contributions guide.
Taxes and investments
Balances grow tax-deferred and are invested in low-cost U.S. equity index funds. See taxes and investments for the details.
How to open a Trump Account
A parent or legal guardian files IRS Form 4547 — on paper or through the official online form. Our Form 4547 guide explains the process, which is free.
Trump Account vs a 529 plan
A 529 is aimed at education costs; a Trump Account is a broader, IRA-style account. Many families use both. Compare them on our Trump Account vs 529 page.
Frequently asked questions
What is a Trump Account?
A Trump Account is a tax-advantaged savings and investment account for a child, created under Internal Revenue Code Section 530A by the 2025 budget law. It works much like a traditional IRA opened for a child: money is invested in low-cost U.S. stock index funds and grows tax-deferred until the child is an adult.
Who is eligible for a Trump Account?
Any child under age 18 with a valid Social Security number can have a Trump Account, set up and managed by a parent or guardian. A separate, one-time $1,000 government contribution is available only for children who are U.S. citizens born from January 1, 2025 through December 31, 2028, when the election is made for them.
How do I open a Trump Account?
A parent or legal guardian makes the election on IRS Form 4547, either on paper or through the official online form and the trumpaccounts.gov portal. Treasury then processes the election and opens the account. There is no fee to file the form. Always confirm the current process on the official government website.
How much can be contributed each year?
The general annual limit is $5,000 per child for 2026 and 2027, adjusted for inflation after 2027. Contributions can come from parents, family, friends, the child, and employers. Employers may add up to $2,500 per employee per year, which counts toward the $5,000 limit.
When can the money be used?
Funds generally cannot be withdrawn before January 1 of the year the child turns 18. After that point, the account is generally treated as a traditional IRA and follows those distribution rules. Check official guidance for the details that apply to a specific situation.
Is a Trump Account connected to Truth Social?
No. A Trump Account is a federal savings and investment account for children under tax law. It is not a social media account and has no connection to Truth Social or any social platform. Be cautious of anything online that mixes the two, and rely on official government sources.
How is a Trump Account different from a 529 plan?
A 529 plan is designed mainly for education expenses and is state-sponsored, while a Trump Account is a federal, IRA-style account for long-term saving that is invested in U.S. equity index funds. They have different contribution rules, tax treatment, and withdrawal rules, so many families consider how the two fit together.
Rules can change. Before you act, confirm the current details with official sources such as the IRS and the U.S. Department of the Treasury, and the official program site at trumpaccounts.gov.