Frequently Asked Questions

A Trump Account is a tax-advantaged savings account created under IRC Section 530A by the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025. It provides a $1,000 federal pilot deposit for children born 2025–2028 and allows tax-deferred growth until age 18, when it converts to a traditional IRA.

Trump Accounts were established by the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025. The IRS published guidance in Notice 2025-68 on December 3, 2025.

Yes. Trump Accounts are established in federal law under IRC Section 530A. The IRS has published formal guidance (Notice 2025-68), created Form 4547, and is building the trumpaccounts.gov portal.

Any U.S. citizen child under 18 with a valid Social Security Number. There are no income restrictions.

Only children born between January 1, 2025 and December 31, 2028 qualify for the one-time $1,000 federal pilot deposit. Use our Eligibility Checker to confirm.

Yes — any U.S. citizen child under 18 can have a Trump Account. However, children born before 2025 do not receive the $1,000 pilot deposit.

No. Unlike Roth IRAs, Trump Accounts have no income restrictions. Any family can participate.

Up to $5,000 per year (after-tax). This limit is indexed for inflation starting in 2027.

Yes. Employers can contribute up to $2,500/year per employee, tax-free under IRC §128. This counts toward the $5,000 annual cap and is per employee, not per dependent.

Yes. Anyone can contribute to a Trump Account, including grandparents, relatives, or friends — as long as the total annual contributions don't exceed $5,000.

Yes. Anyone can contribute — family, friends, employers, charities, or strangers. There is no authorized-giver list. All gifts still share the $5,000 annual cap (with the usual exceptions for pilot deposits and certain qualified general contributions). Deep dive: Money & Funding FAQ.

Yes. No account, no gift — no matter who is giving. Dell, SpaceX/Shotwell, employers, family, and strangers can only put money into an existing Trump Account. Open first, then gifts can arrive.

Funds must be invested in mutual funds or ETFs that track the S&P 500 or a broad U.S. equity index. Expense ratios are capped at 0.1% (10 basis points). See our Fund Expense Tracker for eligible options.

No. Trump Accounts are restricted to S&P 500 or broad U.S. equity index funds/ETFs only.

No. Withdrawals before age 18 are not permitted except for: (1) rollovers to another Trump Account, (2) return of excess contributions, or (3) the child's death.

The Trump Account automatically converts to a traditional IRA. From that point, standard IRA rules apply for contributions, withdrawals, and required minimum distributions.

Withdrawals are taxed as ordinary income (traditional IRA treatment). Before age 59½, a 10% early withdrawal penalty also applies. Use our Withdrawal Simulator to see the impact.

Not automatically. Converting at 18 can be a mistake if you treat it as “convert ASAP.” The goal is to convert when the account owner is in their lowest tax bracket — often during college, a gap year, or early career, before income rises. More: Tax FAQ.

No. Trump Accounts (§530A) become a traditional IRA at 18. HSAs are for qualified medical expenses (usually with a high-deductible health plan). There is no enacted “Trump Account HSA.” See Comparisons FAQ.

Three ways: (1) Include IRS Form 4547 with your 2025 tax return (due April 15, 2026), (2) through the trumpaccounts.gov portal (launching mid-2026), or (3) by mailing Form 4547 to the IRS.

IRS Form 4547 (Trump Account Election(s)) is the form you file to establish a Trump Account for your child. It's included with your federal tax return.

Michael and Susan Dell pledged $6.25 billion — $250 each to about 25 million children born 2016–2024 in ZIP codes with Median Family Income of $150,000 or less. Private philanthropy, on top of the $1,000 federal pilot when eligible. Confirm at investamerica.org/dell. The money only lands if the Trump Account is already open.

SpaceX president Gwynne Shotwell pledged over 2 million shares of SpaceX stock for kids in lower-income areas (similar ZIP targeting as Dell). Private gift — confirm claim rules when published. Same rule: no open account, no gift. See Money & Funding FAQ.