What a Trump account is
- An IRA for a child: the IRS describes it as a type of traditional IRA set up for a child by the end of the year the child turns 17.
- Who can have one: a child with a valid Social Security number who will not turn 18 before the end of the year the account is opened.
- The growth period runs from the opening of the account to December 31 of the year before the child turns 18. During it, money stays in the account apart from a few exceptions.
- Investments are limited to eligible investments, generally a mutual fund or ETF that tracks an index of primarily US companies.
The $1,000 pilot contribution
Children who are US citizens, born from January 1, 2025 through December 31, 2028, with a valid Social Security number can get a one-time $1,000 deposit from the federal government. It is not automatic: an authorized individual elects it on Form 4547, even when Treasury has already opened the account. No pilot contribution is deposited before July 4, 2026. If you have already requested it, you do not need to file again.
Who can add money, and how much
| Contribution | Limit |
|---|---|
| All regular contributions together, including employer contributions | $5,000 a year |
| Employer contributions within that | $2,500 a year |
| The $1,000 pilot contribution, qualified general contributions and qualified rollovers | No annual limit |
The $5,000 and $2,500 limits are adjusted for inflation after 2027. No contributions of any kind can be made before July 4, 2026.
What it could grow to
An illustration over 17 years, assuming steady annual returns; actual returns of the index funds the account must hold will differ:
| Assumed yearly return | $1,000 pilot only | $5,000 every year |
|---|---|---|
| 0% | $1,000 | $85,000 |
| 4% | $1,948 | $118,488 |
| 7% | $3,159 | $154,201 |
The compound interest calculator runs the same math with your own numbers.
When the money can come out
During the growth period the only distributions allowed are a rollover to another Trump account, a rollover of the whole balance to an ABLE account at 17, the removal of excess contributions, and payment on the child's death. Distributions are reported on Form 1099-R, which has a new Trump account box from 2026, as described in Form 1099-R explained.
Opening and claiming
- Automatic accounts: since October 1, 2026, Treasury has opened accounts for eligible children; claim and activate yours through the Trump Accounts app or website.
- Form 4547: for a child without an account, or to elect the $1,000, file it through the app, the website, your IRS Individual Online Account, or with your tax return. It can be filed at any time.
- Who may elect: a legal guardian, parent, adult sibling or grandparent, in that order of priority.
For other ways to save for a child, compare a 529 plan for education.
Frequently asked questions
What is a Trump account?
A new type of individual retirement account for children, under section 530A of the tax code. The IRS describes it as a type of traditional IRA set up for a child by the end of the year the child turns 17.
Who gets the $1,000 from the government?
US citizens born from January 1, 2025 through December 31, 2028 with a valid Social Security number. Parents or other authorized individuals must elect it with Form 4547, even if Treasury opened the account automatically.
How much can be put into a Trump account each year?
$5,000 a year from all regular sources together, including up to $2,500 from an employer, with cost-of-living adjustments after 2027. The $1,000 pilot contribution, qualified general contributions and qualified rollovers do not count toward that limit.
Can the money be taken out before 18?
Generally no. During the growth period, which ends on December 31 of the year before the child turns 18, the only allowed distributions are rollovers to another Trump account, a rollover to an ABLE account at 17, removal of excess contributions and distributions on the child's death.
How do I open one?
Since October 1, 2026, Treasury has opened accounts automatically for eligible children, which parents then claim through the Trump Accounts app or website. Otherwise, file Form 4547 through the app, the website, your IRS Individual Online Account or with your tax return.
Sources
- IRS: Trump Accounts frequently asked questions (a new type of IRA for children; valid SSN and under 18 at the end of the year; automatic enrollment from October 1, 2026; claiming through the app or website; Form 4547 by app, website or IRS Online Account; the $1,000 pilot contribution for US citizens born 2025 to 2028 and how to elect it)
- IRS: Instructions for Form 4547 (12/2025) (authorized individuals, child eligibility, the growth period, no contributions before July 4, 2026, the $5,000 and $2,500 limits with COLAs after 2027, contributions outside the limit, eligible investments tracking an index of primarily US companies, distributions allowed during the growth period, filing at any time including with the return)
- IRS: Instructions for Forms 1099-R and 5498 (2026) (a Trump account is a type of traditional IRA established by the end of the year the beneficiary reaches 17; the growth period; new box 7c)
General information based on the sources above, not tax, legal or financial advice.