Trump Accounts are special savings and investment accounts for children under age 18.
They work a lot like a traditional IRA, but with special rules just for kids.
In simple terms:
- An adult opens the account for a child
- Money is invested early, while the child is young
- The account is meant to grow over many years
- When the child becomes an adult, the account turns into a regular traditional IRA
Who is eligible?
A child is eligible if they:
- Are under 18 at the end of the year the account is established
- Have a Social Security number
- Do not need earned income to contribute
To receive the free starting contribution of $1,000 (government seed money), the child must also:
- Be a U.S. citizen
- Be born between January 1, 2025 and December 31, 2028
The $1,000 government contribution (Pilot Program)
Under a temporary federal pilot program, the U.S. Treasury will deposit $1,000 one time:
- Into each eligible child’s Trump Account
- Starting on or after July 4, 2026
- This $1,000 does NOT count toward annual contribution limits
- Parents must elect to receive this deposit (expected via Form 4547 or an online portal).
- The $1,000 government contribution is not automatic, it can take time to hit the account.
When do Trump Accounts start?
- Accounts can be established in 2026
- No contributions are allowed before July 4, 2026
- Elections to open an account may be made with a 2025 tax return using Form 4547, or through your online IRS account.
Annual contribution limits
During the child’s “growth period” (birth through age 17):
| Contributor | Annual Limit | Tax Treatment |
|---|---|---|
| Parents / family / others | Up to $5,000 total | After‑tax, not deductible |
| Employers | Up to $2,500 | Excluded from employee income |
| Government / charities (qualified programs) | No cap | Tax‑free |
| Federal pilot deposit | $1,000 one‑time | Tax‑free |
All private contributions combined generally count toward the $5,000 annual cap.
Investment Rules for Trump Accounts (Before Age 18)
While the child is under 18, the money in a Trump Account must be invested very simply and safely.
Allowed Investments
The funds must be invested only in:
- Low‑cost mutual funds or ETFs
- Funds that track the overall U.S. stock market, such as the S&P 500
This keeps investing simple, diversified, and low‑risk.
Not Allowed Before Age 18
During the growth period, the account cannot be used for:
- Individual stocks
- Cryptocurrency
- International (non‑U.S.) funds
- Active or frequent trading
Withdrawal Rules for Trump Accounts
Before Age 18
- No withdrawals are allowed
- The money must stay in the account until January 1 of the year the child turns 18
This means the funds are locked in while the child is a minor.
At or After Age 18
Once withdrawals are allowed, the account begins to work similar to a traditional IRA, with special tax rules.
Are Withdrawals Taxable?
- Contributions were made with after‑tax dollars
- Your original contributions are not taxed again
- Only the earnings (growth) are taxable when withdrawn
- The taxable portion is reported as ordinary income
⚠ Early Withdrawal Penalty
- If the earnings are withdrawn before retirement age, a 10% early‑withdrawal penalty may apply
- Some standard IRA exceptions may remove the penalty (but not always the tax), such as:
- Qualified education expenses
- First‑time home purchase (up to IRS limits)
- Other IRS‑approved IRA exceptions
Employer involvement
Employers can:
- Contribute up to $2,500 per year
- For an employee’s child (or under‑18 employee)
- Contributions are tax‑free to the employee
- Many large companies (banks, tech firms) have announced matching programs How Trump Accounts compare to other accounts
Program Navigation
To elect a Trump Account or request the $1,000 deposit
Navigation path:
Federal ➜ Miscellaneous Forms ➜ Trump Account Election(s)
Step‑by‑step:
- Log in to TaxSlayer
- From the Federal menu, select Miscellaneous Forms
- Choose Trump Account Election(s)
-
Choose an existing child from your dependents
- or Add a new dependent if the child is not already listed
- Confirm the child’s information
- Check the confirmation box or
- Add or update the child’s address if prompted
- Check the box to:
- Open the Trump Account and
- Request the $1,000 government deposit (if eligible)
- Continue and save
If you do nothing
- No form is filed
- Account is not opened using tax return
- $1,000 opening contribution is not deposited into account
What if I've already filed or just want to submit Form 4547?
You are not required to file Form 4547 with your return, so you can mail the individual Form 4547 to the IRS to make the election, or file it with your tax return. If you have already filed your taxes, do not need to amend to file Form 4547, simply mail the form to the IRS, or use your IRS account to make the election online after July 4, 2026.