(UBS)
Trump Accounts can be funded with up to $5,000 per year by individuals such as a parent or guardian, for any child with a Social Security Number under the age of 18. Up to $2,500 annually per employee may be funded by the parent’s or child’s employer. Others, such as non-profits or government entities may make additional contributions not subject to the $5,000 limit to all children within a qualified class. For example, on December 2, 2025, President Trump announced that the Michael and Susan Dell foundation committed to contribute $6.25 billion to fund Trump Accounts, with $250 for 25 million US citizen children age 10 and under living in zip codes with median incomes below $150,000. Politicians are encouraging CEOs of US corporations to similarly commit to fund Trump Accounts.
All Trump Accounts must be established with the initial trustee(s) selected by the US Treasury, regardless of the contribution source, and individuals can have only one Trump Account. A new IRS Form 4547 and tool/application on trumpaccounts.gov is anticipated for mid-2026 to establish the account and request the $1,000 contribution from the US Treasury. The Trump Account must be invested in unleveraged mutual funds or ETFs that track a qualified index of primarily US equities (i.e., there is virtually no ability to hold cash), and investment fees and expenses cannot exceed 0.1%.
The contributions from individuals are not tax-deductible while the contributions from others (employers, governments, and tax-exempts) are treated as pretax contributions. Distributions are generally not permitted before the calendar year the beneficiary attains age 18—there is no exception for a hardship distribution. The Trump Account will generally become subject to the normal rules that apply to traditional IRAs at age 18.
After the initial Trump Account is established as discussed above, a Trump Account can be fully transferred to another trustee that is eligible to custody IRAs (e.g., a bank or brokerage firm) that satisfies the extensive reporting and account administration requirements of Trump Accounts. It is likely that many current IRA trustees and custodians will consider whether to offer Trump Accounts after the initial launch with the approved U.S. Treasury trustees in summer 2026 and their analysis of the Treasury’s administrative and reporting requirements.
For more information, visit https://trumpaccounts.gov/ .
