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Last verified: February 2026

What Are Trump Accounts for Kids? A Complete Guide for Parents

What is a Trump Account? A Trump Account is a new type of tax-advantaged investment account created by the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025. Officially established under IRC Section 530A, Trump Accounts are designed to give every American child a financial head start.

✅ The short version

The government deposits $1,000 for every child born 2025–2028. Parents can add up to $5,000/year. It grows tax-deferred in S&P 500 funds until age 18, then converts to a traditional IRA.

How Trump Accounts Work

  1. Federal Seed Money: Children born January 1, 2025 through December 31, 2028 receive a one-time $1,000 pilot deposit from the federal government.
  2. Annual Contributions: Parents (or anyone) can contribute up to $5,000/year in after-tax dollars. This limit is indexed for inflation starting in 2027.
  3. Employer Contributions: Employers can contribute up to $2,500/year per employee, tax-free under IRC §128. This counts toward the $5,000 cap.
  4. Investment: All funds must be invested in mutual funds or ETFs tracking the S&P 500 or a broad U.S. equity index. Expense ratios are capped at 0.1%.
  5. Growth Phase: From birth to age 18, the account grows tax-deferred. No withdrawals are allowed.
  6. At Age 18: The Trump Account automatically converts to a traditional IRA with standard IRA rules.

Who Is Eligible?

To open a Trump Account, the child must be:

  • A U.S. citizen
  • Have a valid Social Security Number (SSN)
  • Under 18 at the end of the election year

There are no income restrictions — any family can participate regardless of how much they earn.

ℹ️ $1,000 pilot deposit eligibility

Only children born between January 1, 2025 and December 31, 2028 qualify for the $1,000 federal pilot deposit. Children born outside this window can still open a Trump Account but won't receive the deposit.

How to Open a Trump Account

There are three ways to establish a Trump Account:

  1. With your tax return: Include IRS Form 4547 (Trump Account Election(s)) with your 2025 tax return, due April 15, 2026.
  2. Online portal: Through trumpaccounts.gov (expected to launch mid-2026).
  3. By mail: Send Form 4547 to the IRS.

The Dell Foundation Pledge

Michael and Susan Dell pledged $6.25 billion — $250 per child under 10 in ZIP codes where the median income is below $150,000. This is in addition to the $1,000 federal pilot deposit.

Tax Treatment

Trump Accounts use traditional (tax-deferred) treatment:

  • Contributions are made with after-tax dollars (no tax deduction)
  • Earnings grow tax-deferred during the growth phase
  • Withdrawals after age 18 are taxed as ordinary income
  • Before age 59½, a 10% early withdrawal penalty applies (standard IRA rules)

📜 From IRS Notice 2025-68

"A Trump Account is a trust created or organized in the United States for the exclusive benefit of an eligible beneficiary..."

Plain English: It's a savings account your kid owns. You manage it until they turn 18, then it becomes their traditional IRA.

The Trump Accounts Bill (One Big Beautiful Bill Act)

Trump Accounts were created by the One Big Beautiful Bill Act (OBBBA), a sweeping federal bill signed into law on July 4, 2025. The specific section that establishes Trump Accounts is IRC Section 530A. The IRS published its first official guidance in Notice 2025-68 on December 3, 2025, detailing how the accounts work, who qualifies, and how to file. Parents open accounts by submitting IRS Form 4547 (Trump Account Election(s)) with their tax return or through trumpaccounts.gov.

Frequently Asked Questions

Is a Trump Account the same as a 529 plan?
No. While both help families save for children, a 529 is for education expenses with tax-free growth, while a Trump Account converts to a traditional IRA at age 18 with tax-deferred growth and a $1,000 federal seed deposit.
Can I open a Trump Account for my existing child (born before 2025)?
Yes! Any U.S. citizen child under 18 can have a Trump Account opened for them. However, only children born between Jan 1, 2025 and Dec 31, 2028 receive the $1,000 federal pilot deposit.
What if I make too much money?
There are no income restrictions for Trump Accounts. Unlike Roth IRAs, any family can open and contribute regardless of income.
Can I withdraw the money before age 18?
No. Withdrawals before age 18 are not permitted except for rollovers to another Trump Account, return of excess contributions, or in the event of the child's death.
Are Trump Accounts savings accounts?
No. Despite the nickname "Trump savings accounts," they are investment accounts. The money goes into S&P 500 index funds — not a bank savings account. Over 18 years, the difference is dramatic: $1,000 in a bank at 4% APY grows to about $2,026, while $1,000 in a Trump Account at the S&P 500's historical 10% average grows to roughly $5,560.
Can I open a Trump Account for my baby or any child?
Yes. Any U.S. citizen child under 18 with a valid SSN qualifies — babies, toddlers, kids, and teenagers. "Trump baby accounts" and "child Trump accounts" all refer to the same program under IRC Section 530A.

Run the Numbers

Use our free calculators to see how a Trump Account could work for your family:

Eligibility Checker

See if your child qualifies

Growth Calculator

Project how much it could grow

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