A Trump Account is a child-owned traditional IRA created under Internal Revenue Code §530A. A parent or guardian generally serves as custodian while the child is a minor. A child may qualify to open an account without qualifying for the separate, one-time $1,000 federal pilot contribution.
What is a Trump Account?
It is a tax-advantaged account established for a child under Internal Revenue Code §530A. The child owns the account; while the child is a minor, a parent or guardian generally manages it as custodian. Special contribution, investment, distribution and reporting rules apply during a period the law calls the “growth period.” After that period, most of those special rules end and traditional IRA rules generally apply. Investor.gov’s Trump Accounts overview and the IRS Instructions for Form 4547 (December 2025) describe the account structure.
When does the growth period end?
The growth period runs through December 31 of the year before the year the child turns 18. For example, the IRS instructions say that a child born October 1, 2025 has a growth period ending December 31, 2042.
Who can open an account, and who qualifies for the $1,000?
Eligibility to elect an account
Under the IRS Instructions for Form 4547, the child generally must be under 18 at the end of the year the election is made and have a valid Social Security number. These are the general account-election requirements; they do not by themselves qualify a child for the pilot contribution.
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Eligibility for the one-time pilot contribution
The $1,000 federal pilot contribution is limited to a child who is a U.S. citizen, was born after December 31, 2024 and before January 1, 2029, has a valid Social Security number, and has not already had a pilot election processed. The authorized person making that election must anticipate that the child will be their qualifying child for the election year. An eligible election is required; the contribution is not automatic. A child who does not meet these pilot conditions may still qualify for an account.
How do you elect an account?
- Gather the child’s identifying information. The election requires the child’s Social Security number, along with other information requested on the form or online process.
- Submit Form 4547 or use the government online process. The IRS identifies Form 4547 and an online route through the IRS Individual Online Account and the government Trump Accounts service.
- Make the pilot election only if the child qualifies. The IRS instructions distinguish who may elect to establish an account from who may request the pilot contribution. A person making the pilot election must meet the qualifying-child condition described above.
The person identified on the election is responsible for the initial account while the child is a minor. Treasury announced the full app launch on July 4, 2026, describing account access, balance and contribution dashboards, recurring-contribution setup, bank linking and 15 financial-education modules. These are features described by Treasury, not a comparison of providers or an assessment of app performance.
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How much can go into the account, and what are the tax rules?
Annual contribution limit
The aggregate limit for non-exempt contributions is $5,000 per year in 2026 and 2027, under the IRS’s Internal Revenue Bulletin 2025-52 (December 22, 2025). The limit is subject to later cost-of-living adjustments. The statutory framework treats certain pilot, rollover and qualified general contributions separately from that limit.
Contributions could not be accepted before July 4, 2026. During the growth period, an individual cannot deduct a Trump Account contribution under Internal Revenue Code §219. Do not assume that a deposit is deductible simply because the account is an IRA.
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Family gifts and employer contributions
- Gifts: IRS Revenue Procedure 2026-25 provides a gift-tax reporting safe harbor for certain contributions when its requirements are met. It is not a blanket rule for every deposit or taxpayer; consult the procedure for the conditions that apply.
- Employer contributions: An employer may contribute up to $2,500 per year to an employee’s account or a dependent’s account under section 128, subject to applicable plan requirements. IRS guidance issued August 11, 2026 describes proposed regulations, including nondiscrimination conditions. The proposal is not a requirement for employers to offer the benefit, and the final rules may differ.
What can a Trump Account invest in?
Investor.gov describes current choices as low-cost mutual funds or exchange-traded funds (ETFs) tracking broad U.S. equity indices, such as the S&P 500. The available choices are therefore narrower than the full range of investments commonly available in other IRAs, and an equity-index investment can rise or fall in value.
The IRS’s Internal Revenue Bulletin 2026-38 (September 14, 2026) describes proposed investment rules. Under that proposal, an eligible fund would need to track a qualified index, use no leverage and have annual fees and expenses no higher than 0.1% of fund balance. A qualified index would include the S&P 500 or another index of primarily U.S. companies with regulated futures contracts traded on a qualified board or exchange; industry- and sector-specific indices would be excluded. These are proposed criteria, not final regulations.
If you are comparing options offered by an account provider, check the provider’s servicing and account access, the index and diversification of each fund, the fund’s expenses, and whether it is currently available under the account rules. Provider menus can change; no particular fund or provider is established here as the best choice.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Can a child withdraw money before turning 18?
Distributions are generally restricted during the growth period. The reviewed Investor.gov and IRS materials do not establish a complete list of exceptions or every tax consequence of a withdrawal, so do not rely on a partial list to determine whether a specific withdrawal is allowed. Check current statutory text and IRS guidance, and seek qualified tax advice for an individual situation.
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