TRUMP Account for Kids
1. What is it?
A 530A tax-advantaged IRA designed specifically for kids. This is a new type of IRA established as part of the One Big Beautiful Bill Act. To open a Trump account, your child must have a Social Security number and be under 18 years old on December 31 of the year the account is opened. Each child may have only one Trump account. To be eligible for the $1,000 pilot program, a child must also be a U.S. citizen.
2. How do I open a Trump account?
Legal guardians, parents, adult siblings, or grandparents (in priority order) can elect to open a Trump account for those eligible by submitting IRS Form 4547 at any time, or by using an online portal. Form 4547 serves as an election to establish the account. (You may want to consider filing Form 4547 with your 2025 tax return so your account is available for use in July 2026.) You can submit the form using the online portal at https://trumpaccounts.gov/form.
3. When will these accounts be available?
Trump accounts are available as of 1/1/26. Contributions, however, can’t be made until after 7/4/2026.
4. What are the contribution rules?
Individuals can contribute up to a total of $5,000 per child per year. Unlike other types of IRAs, Trump accounts do not require individuals to have earned income or restrict contributions based on total income.
Additional contributions may be available from other government entities and charitable organizations, which do not count toward the $5,000 contribution limit. Through the pilot program, the federal government has promised to contribute $1,000 to each account for children who are U.S. citizens and born between 1/1/2025 and 12/31/2028. Eligibility to elect the $1,000 pilot contribution depends on whether the individual anticipates the child will be their qualifying child for federal tax purposes, as explained in Form 4547 instructions.
Annual contributions to Trump accounts in years before children turn 18 do not affect how much they can contribute to other IRAs. For example, teenagers with jobs may have earned income that allows them to contribute to a traditional or Roth IRA – which does not reduce the amount they can contribute to a Trump account for that year.
5. What are the rules for investing in Trump accounts?
Funds in a Trump account may be invested only in certain eligible investments, which are generally low-cost stock index mutual funds or ETFs whose underlying securities are composed of predominantly U.S.-based companies. All investments must meet criteria established by the U.S. Treasury Department.
6. What are the withdrawal rules?
Generally, no withdrawals are allowed from these accounts during the “growth period” – basically until the year the child turns 18. Beginning in the year the child turns 18, the account is subject to most of the same contribution and withdrawal rules that govern traditional IRAs.
There is one key difference: If an investor keeps the Trump account separate from other IRAs upon turing 18, it won’t be combined with other IRAs when calculating taxes and penalties on withdrawals. This may provide investors with beneficial financial planning flexibility in deciding which type of account to use for withdrawals or Roth IRA conversions.
7. When can funds be used?
Funds can be accessed without penalty when the child turns 18 for qualified expenses like education, a first home purchase, or starting a business. Withdrawals may be subject to restrictions and would be taxed at ordinary income rates.
8. How are Trump accounts taxed?
Contributions from individuals are made on an after-tax basis, meaning that upon withdrawal, on the earnings on these contributions are subject to income tax and possible penalty.
Contributions from other sources are made on a pre-tax basis, meaning that upon withdrawal, the full value of the contributions and earnings from these sources is subject to income tax and possible penalty.
Investments grow tax-deferred, so no tax is due on the account proceeds until funds are withdrawn.
Get started on the Trump Accounts website at www.trumpaccounts.gov.
