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Trump Accounts: Building New Opportunities for Supporting Long Term Savings

This year, the U.S. Treasury Department will launch Trump Accounts—a program designed to give every American child a financial head start. Established under the Working Families Tax Cuts legislation and set to launch on July 5, 2026, these specialized individual retirement accounts (IRAs) represent a new way for Americans help create long term savings for their children.

What Are Trump Accounts?

Trump Accounts are a new type of tax-advantaged individual retirement account specifically designed for children under age 18. Unlike traditional IRAs that require earned income to contribute, Trump Accounts can be established for any eligible child with a valid Social Security number, regardless of whether they have employment income.

The centerpiece of the program is a one-time $1,000 contribution from the U.S. Treasury Department for every American child born between January 1, 2025, and December 31, 2028. This “pilot program contribution” is invested immediately in low-cost index funds, typically tracking the S&P 500, giving children immediate exposure to the American economy’s growth potential.

Eligibility and Account Setup

Any child under age 18 with a valid Social Security number is eligible to have a Trump Account established on their behalf. However, the $1,000 government seed contribution is exclusively available for U.S. citizen children born during the 2025-2028 pilot program window.

Opening a Trump Account requires an election to be made by a parent, legal guardian, or other authorized individual. This can be done in two ways:

1. Filing Form 4547 with your 2025 tax return (the form is currently in draft form and will be finalized soon)
2. Using the online portal at trumpaccounts.gov, which will be available by mid-2026

The Treasury Department will initially create and administer these accounts, selecting one or more financial institutions to serve as trustees based on their reliability, customer service experience, and low costs.

How Contributions Work

Trump Accounts offer multiple pathways for funding, making them uniquely flexible among children’s savings vehicles:

• Individual Contributions: Family members, friends, and other individuals can contribute up to $5,000 per year to a child’s Trump Account. Contributions begin July 4, 2026—appropriately timed with America’s 250th anniversary. The $1,000 Treasury contribution does not count toward this annual limit.
• Employer Contributions: Companies can contribute up to $2,500 annually to an employee’s Trump Account or the accounts of their employee’s dependents through an employer Trump Account contribution program. These contributions don’t count as taxable income for the employee and do count toward the $5,000 annual limit. Major corporations including JPMorgan Chase, Bank of America, Charles Schwab, Uber, Mastercard, Visa, Intel, IBM, and many others have already announced matching contribution programs.
• Charitable Contributions: Governmental entities and qualified charitable organizations can make “qualified general contributions” to Trump Accounts for eligible classes of beneficiaries. Notably, Michael and Susan Dell have pledged $6.25 billion to fund Trump Accounts for 25 million children under age 10—the largest private commitment to American children in the nation’s history. Ray and Barbara Dalio followed with a $75 million pledge to fund accounts for more than 300,000 Connecticut children.

These contribution limits are indexed to inflation and will adjust starting in 2027.

Access and Withdrawals

When the account beneficiary turns 18, the Trump Account essentially converts to function like a traditional IRA. At that point, the young adult has several options:

• Continue growing the account for retirement savings
• Withdraw funds for qualified expenses like higher education or purchasing a first home, with all the tax advantages of a traditional IRA
• Make qualified distributions that avoid the typical 10% early withdrawal penalty
• Withdrawals outside approved categories would be subject to standard IRA penalties and taxes, encouraging young adults to use the funds wisely for major life investments.

Getting Started

For families with children born between 2025 and 2028, the process is straightforward:

1. Ensure your child has a valid Social Security number
2. File Form 4547 with your 2025 tax return or wait for the online portal (expected mid-2026)
3. Activate your account when you receive instructions from the Treasury (starting May 2026)
4. Consider setting up regular contributions to maximize growth potential
5. Check if your employer offers Trump Account contribution matching

For detailed information, guidance, and updates, visit the official websites at trumpaccounts.gov
andirs.gov/trumpaccounts.