Families
Trump accounts: how they work and how to claim one
A Trump account is a new kind of individual retirement account for children, created by the July 2025 tax law. U.S.-citizen children born from 2025 through 2028 can get a one-time $1,000 deposit from the Treasury. Since July 4, 2026, parents, relatives and employers can add up to $5,000 a year.
The key numbers
A Trump account does not need the $1,000 deposit to exist. Any child who meets the age and Social Security number rules can have one.
| Item | Rule |
|---|---|
| Who can have one | A child with a valid Social Security number who does not turn 18 before the end of the year the account is opened |
| $1,000 Treasury deposit | U.S.-citizen children born January 1, 2025 through December 31, 2028; you must elect it |
| Yearly contribution limit | $5,000 for 2026 and 2027, then adjusted for inflation |
| Employer contribution | Up to $2,500 a year, not taxable to the employee; counts toward the $5,000 |
| Outside the $5,000 limit | The $1,000 Treasury deposit, contributions from governments and charities to groups of children, and rollovers from another Trump account |
| First contributions | July 4, 2026 |
| Withdrawals | Not before January 1 of the year the child turns 18; then traditional IRA rules |
How to claim the account and the $1,000
From October 1, 2026, the Treasury automatically opened Trump accounts for eligible children. You still have to claim the account to manage it, in the Trump Accounts app (App Store or Google Play) or on the Trump Accounts website.
The $1,000 is not automatic, even if the account was opened for you. A parent or guardian asks for it on Form 4547, Trump Account Election(s), through the app, the website, your IRS online account, or with your tax return. If something on the form was wrong, the IRS sends notice CP318 explaining how to send it again; do not amend your tax return for it.
The Bank of New York Mellon is the Treasury’s financial agent for the program, and Robinhood Securities is the brokerage provider and initial trustee. Help line: 866-USA-4547.
How the money is taxed
There is no tax deduction for putting money in. Growth is tax-deferred.
Money that parents, relatives and others put in after tax creates basis, so it is not taxed again when withdrawn; earnings are. The $1,000 Treasury deposit, employer contributions and government or charity contributions do not create basis, so they are taxed when they come out, like the earnings.
From the year the child turns 18, the account is generally treated as a traditional IRA, with the same rules for withdrawals, including the usual 10% additional tax on early withdrawals unless an exception applies.
What it can be invested in
Until the end of the year the child turns 17, the money can only go into mutual funds or exchange-traded funds that track an index of mostly U.S. stocks, such as the S&P 500, with no leverage. Proposed rules would cap fees at 0.1% a year. If no investment is chosen, the trustee picks one.
For employers
Employers can contribute up to $2,500 a year to the Trump accounts of employees or their dependents, tax-free to the employee, under a separate written plan that meets nondiscrimination rules. The regulations for these plans were proposed in August 2026 and are not final.
Had a baby in 2025 or 2026?
We can file Form 4547 with your return so the $1,000 is requested, and check the child tax credit at the same time. Tax preparation from $249, in Naperville, IL, or remotely.
Questions people ask
Who gets the $1,000 Trump account deposit?
U.S.-citizen children with a valid Social Security number born from January 1, 2025 through December 31, 2028. A parent or guardian has to elect it on Form 4547.
How much can I put in a Trump account?
$5,000 a year in total from parents, relatives, employers and others for 2026 and 2027. The $1,000 Treasury deposit and government or charity contributions do not count toward it.
Are Trump account contributions tax-deductible?
No. Growth is tax-deferred, and money you put in after tax is not taxed again when it comes out; earnings are.
When can my child take money out of a Trump account?
Not before January 1 of the year they turn 18. After that the account follows traditional IRA rules.
My child’s account was opened automatically. Do I still need to do anything?
Yes. Claim the account in the Trump Accounts app or website to manage it, and file Form 4547 to elect the $1,000 if your child qualifies.
Where these rules come from
- IRS: Trump accounts
- IRS: Trump accounts frequently asked questions
- IRS Notice 2025-68: Guidance on Trump accounts
- IRS IR-2026-96: Proposed regulations on eligible investments
- IRS IR-2026-90: Proposed regulations on employer contributions
General information, current when written, not advice about your situation. Fees and forms change; the official pages above are the authority.