What is a Trump Account?

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.

How do I open a Trump Account for my child?

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.

Who can open a Trump Account?

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.

What is the $1,000 federal pilot contribution?

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.

Are contributions to a Trump Account tax-deductible?

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.

What can a Trump Account be invested in?

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.

Can I have both a Trump Account and a 529 plan for my child?

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.

What happens to a Trump Account when my child turns 18?

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.

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The Family Guide to Estate Planning: Helping To Protect What You’ve Built Across Generations

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