A new type of investment account for children is now available — and if you act soon, your child may qualify for a $1,000 federal contribution just for opening one. Trump Accounts, established under Internal Revenue Code Section 530A through the One Big Beautiful Bill Act, are custodial-style traditional IRAs designed to help families build long-term retirement wealth beginning at birth.¹ As of July 4, 2026, accounts are open for contributions — meaning now is the time to understand how to get started.
Here’s what you need to know about how to open a Trump Account for your child and the steps to take today.
What is a Trump Account?
A Trump Account (also called a 530A account) is a tax-advantaged investment account established for the exclusive benefit of an eligible minor. It functions similarly to a traditional IRA from when the account is opened until Dec. 31 of the year before the child turns 18 — with one key distinction: No withdrawals are permitted during this period.
During the growth period, investments are limited to low-cost U.S. equity index mutual funds or ETFs — specifically those that track an index of primarily American companies, carry no leverage, and have annual expenses of no more than 0.10%.2 After the growth period ends, the account transitions to a traditional IRA, giving the young adult access to the full range of IRA rules for distributions, rollovers, and Roth conversions.
Who is eligible?
For a child to be eligible for a Trump Account, the child must:
- Be under age 18 before Dec. 31 of the year of opening.
- Have a valid Social Security number.
- Be a qualifying child of the individual filing Form 4547.
A parent, legal guardian, adult sibling, or grandparent may open the account as the responsible party. Only one Trump Account may be opened per chil
How to open a Trump Account: Three steps
Step 1 — file IRS Form 4547
The election to establish a Trump Account is made by filing Form 4547, Trump Account Election(s). You can file in one of three ways:
- Electronically (recommended): Submit Form 4547 through the official online portal at trumpaccounts.gov. The IRS describes this as the fastest, safest, and easiest method.
- With your tax return: Include Form 4547 with your current-year e-filed Form 1040. This option was available starting with 2025 returns.
- By mail: File a paper Form 4547 separately — the slowest option and generally not recommended.
The form covers up to two children; families with more than two eligible children may file multiple forms. If your child qualifies for the $1,000 pilot contribution, check the applicable box in Part III of the form.
Step 2 — activate your account
After the IRS processes Form 4547, the Treasury will send activation instructions. Beginning in May 2026, the government-administered trustee — currently Robinhood, operating via trumpaccounts.gov — provides account access. An authentication step is required before the account becomes fully operational.
Step 3 — fund and invest
After the account is active, you may begin contributing to it. Annual contributions are limited to $5,000 per child (adjusted for inflation after 2027), and Trump Account contributions do not reduce the child’s or parent’s traditional or Roth IRA contribution limits. The only eligible investments during the growth period are U.S. equity index funds meeting IRS expense requirements. Currently, the primary option is an S&P 500 index ETF, with additional U.S. equity index options expected.³
Quick-start checklist: Opening a Trump Account
What you’ll need:
- Your Social Security number.
- Your child’s Social Security number and date of birth.
- An ID.me account (for online filing at trumpaccounts.gov).
Steps at a Glance
How a financial strategy strengthens your Trump Account
Opening a Trump Account is a meaningful first step, and it can work best as part of a broader financial strategy. Here are three integrated planning areas to consider.
1. Financial planning: Fit it into your bigger picture
A Trump Account is designed for long-term retirement wealth, not short-term needs. A financial plan helps you determine how much to contribute, when to contribute, and how the account complements your family’s other financial goals — from emergency savings to home purchases to education funding. Because contributions are locked until age 18, building this account alongside liquidity and near-term savings, not instead of them, can be beneficial.
2. Tax planning: Understand what you owe (and what you don’t)
Individual contributions to a Trump Account are not tax-deductible. However, employer contributions of up to $2,500 per year made through a Section 125 cafeteria plan or directly are excluded from the employee’s taxable income. Additionally, under Revenue Procedure 2026-25, Trump Account contributions may qualify for the annual gift tax exclusion ($19,000 per recipient in 2026) under specific safe harbor conditions, and no gift tax return is required. A tax planning professional can help you navigate these rules accurately.
3. Investment management: Build for the long term
Because Trump Accounts are limited to low-cost U.S. equity index funds, the investment decision is simplified — but not trivial. Selecting the right index fund, monitoring expense ratios, and aligning contributions with your household cash flow can all factor into the long-term outcome. After the growth period ends, the account converts to a traditional IRA, opening Roth conversion opportunities that a thoughtful investment strategy can help optimize.
Ready to take the next step?
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A Trump Account is a custodial-style tax-advantaged investment account for children under 18, created under Internal Revenue Code Section 530A by the One Big Beautiful Bill Act. Families can contribute up to $5,000 per year on behalf of a child, with funds growing tax-deferred until the child reaches age 18, at which point the account converts to a traditional IRA.
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To open a Trump Account, file IRS Form 4547, Trump Account Election(s). The fastest method is to submit the form electronically at trumpaccounts.gov. You can also file it with your annual tax return or mail it separately. After the IRS processes the form, you’ll receive activation instructions and can begin funding the account.
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A parent, legal guardian, adult sibling, or grandparent may open a Trump Account on behalf of an eligible child. The child must be under age 18, have a valid Social Security number, and be a qualifying child of the individual filing Form 4547.
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Children born between Jan. 1, 2025, and Dec. 31, 2028, may receive a one-time $1,000 contribution from the U.S. Treasury — provided the pilot program election is made on Form 4547 and the child meets eligibility requirements, including U.S. citizenship and a valid Social Security number.
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Individual contributions to a Trump Account are not tax-deductible. However, employer contributions of up to $2,500 per year may be excluded from the employee’s taxable income. Additionally, contributions may qualify for the annual gift tax exclusion under the IRS safe harbor rules established in Revenue Procedure 2026-25.
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During the growth period, Trump Accounts may be invested only in eligible investments — specifically, mutual funds or ETFs that track an index of primarily U.S. companies, do not use leverage, and have annual expenses of no more than 0.10%. Currently, the primary option is an S&P 500 index ETF, with additional U.S. equity index options expected.
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Yes. Trump Accounts and 529 plans serve different purposes — a Trump Account helps build long-term retirement wealth, while a 529 plan helps fund education expenses. They can complement each other as part of a comprehensive savings strategy. A financial planning professional can help you determine how to allocate contributions between both accounts based on your goals.
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When the child reaches age 18, the growth period ends and the account converts to a traditional IRA. The young adult may then roll the account over to an IRA or another eligible retirement plan, with ordinary income taxes applying to future distributions. Roth IRA conversions may also be a valuable strategy to consider at that point.
- “Trump Accounts.” Internal Revenue Service, Dec. 4, 2025.
- “Treasury, IRS Issue Guidance on Trump Accounts Established Under the Working Families Tax Cuts; Notice Announces Upcoming Regulations.” Internal Revenue Service, Dec. 2, 2025.
- “Instructions for Form 4547.” Internal Revenue Service, December 2025.
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