Trump Accounts are new, tax-deferred, long-term investment accounts for children under the age of 18, enacted under the One Big Beautiful Bill Act of 2025 (IRC Sec. 530A). In honor of America’s 250th anniversary, these 530A accounts feature a government-funded $1,000 pilot program contribution for children born from 2025 to 2028, with families able to contribute up to $5,000 annually, aimed at fostering lifelong wealth-building for minors. The Michael & Susan Dell Foundation has pledged to contribute $250 to the first 25 million Trump Accounts opened for children born before 2025 who are under age 11 and meet other conditions. The law also allows for other governmental entities or charities to make similar contributions, if given to a qualified class of beneficiaries.
The IRS released Form 4547 and instructions for taxpayers to file with their 2025 or future year’s tax return to open an initial Trump Account and to elect to request a one-time $1,000 pilot program contribution. Form 4547 should be completed by a parent or other authorized individual to establish an account for an eligible child and to request the government-funded pilot contribution for those U.S. citizens born during calendar years 2025 through 2028. For this purpose, the instructions define “authorized individual” as a legal guardian, parent, adult sibling, or grandparent of the child, in that order of priority.
Trump Accounts are scheduled to launch on July 5, 2026, and families who successfully completed Form 4547 with their election will receive a $1,000 government-funded account and may contribute an additional $5,000 annually.
According to IRS Notice 25-68, employers may contribute to a Trump Account of the employee or the employee’s dependent up to $2,500 per year (which counts against the $5,000 annual limit) under an employer’s Trump Account contribution program, and the contribution will not count toward the employee’s taxable income. The annual contribution limits are indexed to inflation and will adjust starting after 2027.
Contributions from the $1,000 pilot program, government agencies, tax-exempt organizations, or employers do not create basis in a Trump Account. After-tax contributions from other sources, such as a parent or the beneficiary, do create basis and will not be taxed when ultimately distributed.
The funds in Trump Accounts must be invested in certain mutual funds or exchange-traded funds that track the S&P 500 or another index of primarily American equities.
Amounts generally cannot be withdrawn from Trump Accounts before January 1st of the calendar year in which the child turns 18 years old. After that point, the account generally is treated as an IRA and is subject to the same rules as other traditional IRAs.
For the latest news on Trump Accounts, please see trumpaccounts.gov and irs.gov.
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