Trump Accounts are a new tax‑advantaged way to help children build long‑term financial security.
Recent IRS guidance clarified how Trump Accounts work, how families can open them, and what contributions are allowed.
If you have children, grandchildren, or dependents born in or after 2025, these accounts could offer meaningful opportunities, especially during the program’s early years.
How Trump Accounts work
Opening an account
The IRS has released Form 4547, which parents or legal guardians can use to elect and open an account for an eligible child. These are expected to be available by July 4, 2026. An online option to open the accounts may be available at trumpaccounts.gov in mid-2026.
Whoever files Form 4547 becomes the responsible party, which means they control investment decisions, manage rollovers, and name a successor responsible party, up until the child’s 18th birthday.
Initially, all Trump accounts will be opened at custodians selected by the U.S. Treasury. After the first funding, the responsible party may transfer the account to another qualified custodian.
Transition at age 18
On the beneficiary’s 18th birthday, a Trump Account becomes a standard IRA. At that point, normal IRA withdrawal and penalty rules apply. The account can also be rolled into a traditional IRA.
Federal pilot program: $1,000 seed contributions for eligible children
Children born in the United States between January 1, 2025 and December 31, 2028 may qualify for an initial $1,000 federal deposit, but families must specifically elect the contribution using Form 4547.
Five ways Trump Accounts can be funded
Trump Accounts allow contributions from five distinct sources:
- Federal pilot program contributions
- Qualified general contributions from government entities or 501(c)(3) organizations
- Employer contributions
- Qualified rollovers from another Trump Account
- Individual contributions
Gift tax considerations
When someone other than the beneficiary contributes to the account, the IRS is expected to treat it as a gift. While similar transfers have historically been treated as “present interest” gifts qualifying for the annual exclusion ($19,000 in 2026), no official guidance has been issued yet. Contributors should include these gifts when preparing Form 709.
Individual contributions
Families can contribute up to $5,000 annually beginning July 4, 2026. Notably:
- Minors don’t need earned income to receive contributions
- Trump Account contributions don’t affect traditional IRA or Roth IRA limits for the contributor