Trump Accounts Are Now Live: What They Are, Who Qualifies, and What to Do Next

A Trump Account, formally a Section 530A account under the Internal Revenue Code, is a new type of tax-advantaged savings account for children under 18. It was created by the One Big Beautiful Bill Act, signed into law on July 4, 2025, and became operational for contributions on July 4, 2026.

The clearest way to understand it: it functions like a traditional IRA for kids.

During the childhood years (before the child turns 18), contributions are invested in U.S. stock index funds. Money grows tax-deferred, no annual taxes on gains while the funds remain invested. When the child turns 18, ownership transfers fully to them, and from that point it operates under standard IRA rules: withdrawals are taxed as ordinary income, and withdrawals before age 59 and a half may be subject to a 10% IRS penalty unless an exception applies.

One important distinction: these are tax-deferred, not tax-free. That's different from a Roth IRA or 529 plan used for education, where qualified withdrawals come out free of federal tax.

Who Can Open One?

Any U.S. citizen under age 18 with a valid Social Security number is eligible. There are no household income limits, and the child does not need to have earned income to qualify.

An authorized individual, a legal guardian, parent, adult sibling, or grandparent, in that order of priority, opens and manages the account on the child's behalf until they turn 18.

How to Open One

Families can enroll through two routes:

•  File IRS Form 4547 electronically through your IRS Online Account, by mail, or with your 2025 federal tax return (Form 1040). Note: Form 4547 cannot be added by amendment or extension. If filing with a return, it must be included at the time of filing.

•  Enroll through TrumpAccounts.gov, where the official app (developed by Robinhood and managed by BNY as the Treasury's designated financial agent) is available to download.

After submitting Form 4547, Treasury will send an email confirmation and follow-up instructions to activate the account. The IRS indicates the process typically takes about 5 to 10 minutes.

At launch, all accounts are held at the U.S. Treasury. After the child turns 18 and the account converts to a traditional IRA, families will have the option to roll it to a custodian of their choice. Guidance on transfer timing and mechanics is still forthcoming from the IRS.

The $1,000 Federal Contribution

Children who are U.S. citizens born between January 1, 2025 and December 31, 2028, and who meet the IRS definition of a qualifying child of the person filing, are eligible for a one-time $1,000 contribution from the U.S. Treasury. As of this writing, that contribution is actively being issued.

This $1,000 does not count against the annual contribution limit.

It is not automatic. Families must opt in by filing Form 4547 or enrolling through TrumpAccounts.gov. Opening an account to receive it doesn't commit you to any particular ongoing funding strategy.

Contribution Limits and Who Can Contribute

The annual contribution limit is $5,000 per child, shared across all contributors: parents, grandparents, family members, friends, and employers all draw from the same ceiling.

Employers may also contribute up to $2,500 per year through a Section 128 employer contribution program (this counts toward the $5,000 limit). Intel, Uber, and SoFi have already announced plans to participate.

Individual contributions are made with after-tax dollars. There is no upfront tax deduction.

How Does This Compare to Other Savings Options?

529 plans

One of the strongest options for education-focused savings. Contributions and qualified withdrawals are tax-free at the federal level. If education is the primary goal, a 529's tax-free treatment is generally more favorable than a Trump Account's tax-deferred structure.

Custodial Roth IRAs

Available for children who have earned income. Qualified withdrawals in retirement are completely tax-free. Trump Accounts don't require earned income, making them accessible to younger children who can't yet contribute to a Roth IRA.

UTMA/UGMA accounts

Offer flexibility with no restrictions on how the money is used, but gains are taxed annually with no tax deferral benefit.

Trump Accounts

Closest in structure to a traditional IRA. Primary advantages: no earned income requirement, accepts contributions from a wide range of people, and decades of potential tax-deferred growth. The tradeoff: withdrawals are taxed as income and early withdrawals carry penalties.

What to Do If Your Child or Grandchild Qualifies

If you have a child or grandchild who is a U.S. citizen born between January 1, 2025 and December 31, 2028, the $1,000 federal contribution is worth claiming. File Form 4547 or enroll at TrumpAccounts.gov. A tax professional can help confirm eligibility and walk through the process.

Whether to contribute additional funds beyond the federal pilot contribution is a separate question -- one worth thinking through in the context of what your family already has in place.

If you have questions about how a Trump Account fits alongside your existing plan, we're happy to talk it through.

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4. ^{IRS, 2026, [URL: www.irs.gov/trumpaccounts#:~:text=Trump Accounts give,Form 4547]}