What is a Trump Account
- Steve Coker, CFP
- 4 hours ago
- 3 min read
I am frequently asked about easy, tax advantaged ways to help children and grandchildren get a start. College savings plans, like 529 plans, are an excellent tool, but are primarily intended as a college savings tool. What if you want to help your child who is not college bound, or what if you want to help your children buy a home? Up until now there have been few tools without complicated rules or annoying tax reporting. To fill this gap congress created a new type of tax-advantaged account for children in the United States, colloquially called “Trump Accounts”. They’re designed to give kids a financial head start by placing long-term savings into the stock market early in life. Accounts are similar to custodial traditional IRAs: the child owns the account, and an adult (usually a parent or guardian) manages it until they reach adulthood. These accounts grow tax-deferred, and the money generally becomes accessible once the child turns 18. Investments are restricted to broad U.S. stock market index funds with low fees, like S&P 500 index funds. Here are the basics of who is eligible and the key rules for these new accounts.
Who is eligible?
Any U.S. child under 18 with a valid Social Security number can have a Trump Account established for them.
A custodial adult (parent, legal guardian, or another authorized relative) must open the account on their behalf.
Who receives a Federal contribution?
Children born between January 1, 2025, and December 31, 2028 who are U.S. citizens and have a Social Security number are eligible for a one-time $1,000 contribution from the U.S. Treasury when the account is opened. (Note that children outside this age range are eligible for an account, just not the Federal contribution.)
This $1,000 does not count against annual contribution limits and is intended to jump-start a child’s long-term savings.
How Contributions Work
Once active — starting July 4, 2026 — Trump Accounts can receive contributions from multiple sources:
Parents, guardians, grandparents, family, and friends (up to a combined total of $5,000 per year per child).
Employers may contribute up to $2,500 per year on behalf of a child.
Qualified charities and government entities can also make additional contributions that do not count toward the $5,000 annual limit.
Money grows tax-deferred and is typically taxed as ordinary income on withdrawal, unlike Roth IRAs.
How to Sign Up
There are two primary ways to sign up for a Trump Account:
1. IRS Form 4547 – Trump Account Election:
Available now but the actual form may be released later in 2026.
You can file this form when you file your taxes — including on your 2025 tax return — to establish an account for your child and request the $1,000 federal contribution if eligible.
An “authorized individual” — parent, guardian, or eligible relative — must complete the form on behalf of the child.
You can learn more at the official government website: trumpaccounts.gov
Bottom Line
Trump Accounts are a new savings tool meant to help families build long-term wealth for their children. Most U.S. children under 18 with a Social Security number can have an account, and those born between 2025 and 2028 are eligible for a $1,000 government-seeded contribution. Accounts start accepting contributions in July 2026, and you can sign up via IRS Form 4547 or through the official Trump Accounts portal when it launches.