A Trump Account is a tax-advantaged investment account designed to help a child build long-term savings. It works like a traditional IRA for a child, and special rules apply while the child is under age 18. These accounts were created under IRC §530A. This article is meant to help readers understand how Trump Accounts work and is not a recommendation or advice on whether to open or contribute to an account.
Who is eligible for a Trump Account?
Any U.S. citizen under age 18 with a valid Social Security number is eligible for a Trump Account. However, children born between January 1, 2025 and December 31, 2028 who are U.S. citizens and have a valid Social Security number may also qualify for a one-time $1,000 Treasury contribution.
This account is legally owned by the child and will be transferred to the child once they turn 18. While the child is a minor, a responsible adult (e.g., a parent, grandparent, or legal guardian) maintains and manages the account. Only one Trump Account can be opened per child.
Who can open a Trump Account?
Only the child’s parent, legal guardian, adult sibling, or grandparent can open a Trump Account for an eligible child.
How do contributions to a Trump Account work?
Contributions to a child’s Trump Account may come from several sources.
First, children born between January 1, 2025, and December 31, 2028, may qualify for a special “pilot contribution” of $1,000 by the Treasury Department. If the adult opening the account wants to request the $1,000 pilot contribution, the child must be expected to qualify as that adult’s child for tax purposes for the year the election is made.
Second, family and friends can contribute up to a combined total of $5,000 per year for each eligible child. Employers may be able to contribute up to $2,500 of the $5,000 maximum annual contribution. This annual cap is adjusted for inflation.
Contributing individuals cannot claim a traditional IRA deduction under Section 219 for contributions to a Trump Account. Withdrawals are restricted while the account is in the growth period. The child does not need to have earned income for someone to contribute on the child’s behalf.
How are the funds in a Trump Account invested?
When the program launched in July 2026, the default investment was State Street SPDR Portfolio S&P 500 ETF (SPYM), a low-cost ETF that tracks the S&P 500 Index. The Treasury Department selected this fund to provide broad exposure to the U.S. stock market while keeping fees low. The Treasury has also selected additional low-cost index ETFs, including iShares Core S&P 500 ETF (IVV), Vanguard Total Stock Market ETF (VTI), State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM), and iShares Core S&P Total U.S. Stock Market ETF (ITOT).
The Treasury expects to let parents or guardians who manage the fund choose among the additional investment options in the coming months. Until then, all contributions will stay in the default fund.
What happens to a Trump Account when a child turns 18?
When the child turns 18, the account becomes theirs to manage. After age 18, most special Trump Account rules no longer apply, and traditional IRA rules generally apply. This means that there are tax implications upon withdrawal and penalties that may be applied; consult a financial professional if you or your child are considering withdrawing funds from a Trump Account.
How to Sign Up
Parents, grandparents, adult siblings, and guardians can fill out and submit the application, IRS Form 4547, in the official Trump Accounts App (developed by the U.S. Department of the Treasury and downloaded directly from Apple’s App Store or Google Play), when filing taxes, or through the secure IRS website called Individual Online Accounts, or IOLA. Once established, the accounts can be managed through the app or by logging on to TrumpAccount.com.
Note: It helps to have an ID.me account and the child’s Social Security number, date of birth, and address at the ready when opening a Trump Account.
To learn more, consider visiting these official sources:
- Trump Accounts official website
- Please note that the official website uses a .gov domain and not a .com domain.
- IRS Trump Accounts page
- IRS Instructions for Form 4547
- gov Trump Accounts overview
Account returns are not guaranteed. Growth examples shown by the official site are illustrative and hypothetical. Families should review IRS and Investor.gov guidance before making decisions because Trump Accounts are new and have special rules. This summary is educational and should not be understood or relied upon as individualized tax, investment, or legal advice.
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