tl;dr: A Trump Account is a tax-advantaged investment account for a child under 18, created by the 2025 tax law. US citizens born from 2025 through 2028 get a one-time $1,000 from the Treasury. Family and others can add up to $5,000 a year, the money goes into low-cost US stock index funds, and it generally can't be withdrawn before the year the child turns 18. Contributions opened on July 4, 2026. Last verified November 14, 2026.
Trump Accounts: the rules in brief
How Trump Accounts Work
Who can have one: a child with a Social Security number who has not turned 18 by the end of the year the account is elected.
The $1,000: a one-time Treasury deposit for US citizens born from 2025 through 2028.
Contributions: up to $5,000 a year in total from parents, relatives and others. The child needs no earned income.
Employers: can contribute up to $2,500 a year for an employee or dependent. It counts toward the $5,000 and isn't taxable income to the employee.
Investments: mutual funds or ETFs that track the S&P 500 or another index of mostly American stocks.
Withdrawals: generally none before January 1 of the year the child turns 18. After that the account is generally treated as a traditional IRA.
In this guide
How to Open a Trump Account
File IRS Form 4547, the Trump Account election, any time before the child turns 18. Opening an account is free.
Finish setup in the Treasury's Trump Accounts app or at trumpaccounts.gov.
The Treasury holds the first accounts. Moving one to a bank or broker comes later, once the IRS issues more guidance, according to Fidelity.
Watch for scams: the Treasury says its messages come through the app or its official addresses.
Trump Account vs 529 vs Custodial Roth IRA
Feature | Trump Account | 529 plan | Custodial Roth IRA |
|---|---|---|---|
Best for | Long-term head start, free $1,000 | Education costs | Teens with job income |
Child needs earned income | No | No | Yes |
Yearly limit | $5,000 | Set by each state plan | $7,500 or the child's earnings, if lower |
Access | From the year the child turns 18 | Any time for education | Contributions any time |
They can be combined. Many families will take the free $1,000 and keep using a 529 for college.
Is a Trump Account Worth It?
Yes, for the $1,000 if your child was born from 2025 through 2028. It costs nothing to claim.
Yes, if an employer contributes. That is extra pay you would otherwise miss.
Compare before adding your own money. A 529 offers tax-free growth for education, and money in a parent's own Roth IRA stays more flexible.
See what $1,000 could grow to over 18 years with our compound interest calculator. For your own investing, compare accounts in our brokerage reviews.
The rules are still being finalized, so details may change. This is general information, not tax or investment advice.
Trump Account FAQ
1. Who gets the $1,000?
US citizens born from 2025 through 2028 whose parent or guardian files the election on Form 4547.
2. How much can you contribute?
Up to $5,000 a year from all private sources combined. Up to $2,500 of that can come from an employer.
3. When can the money be withdrawn?
Generally not before January 1 of the year the child turns 18. After that, traditional IRA rules generally apply.
4. What can a Trump Account invest in?
Mutual funds or ETFs that track the S&P 500 or another index of mostly American stocks.
5. Can older children have one?
Yes. Any child under 18 can have an account, but only those born from 2025 through 2028 get the $1,000.
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