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Trump Accounts were created under Section 530A of the Internal Revenue Code by the One Big Beautiful Bill Act of 2025 and went into effect on 4 July 2026.
A Trump Account is a type of traditional Individual Retirement Account (IRA) that is established for the exclusive benefit of an eligible individual and that is designated at its establishment as a Trump Account. When the Trump Account is opened, the eligible individual is the owner of the Trump Account and is referred to as the account beneficiary.
A Trump Account can be opened for any child with a valid Social Security number and who will not reach age 18 before the end of the calendar year. Additionally, the US Treasury will make a one-time $1,000 contribution for children who are US citizens born on or after 1 January 2025, through 31 December 2028, if the required election and account opening requirements are satisfied.
Other funding sources can include:
- $5,000 per year by individuals such as a parent or legal guardian, or family members.
- $2,500 of the $5,000 limit by employers for their employees or employees’ children. Note: the $2,500 limit is per employee, not per child.
- Certain governmental, tribal, and §501(c)(3) contributors may make ‘qualified general contributions’ through Treasury for specified qualified classes that are not subject to the $5,000 limit. During the initial rollout, Treasury/IRS guidance limits those classes to all eligible beneficiaries, beneficiaries in one or more states or D.C., or beneficiaries born in specified calendar years; Treasury has not yet designated smaller qualified geographic areas. Separately, philanthropists have announced intended support for Trump Accounts, including a reported Dell Foundation commitment. The mechanics and eligible recipient classes for such contributions should be confirmed as Treasury’s general contribution application process is implemented.
Regardless of the contribution source, all Trump Accounts must be established with the US Treasury which is using Bank of New York to manage the initial accounts and which in turn partnered with Robinhood to create the Trump Accounts app. Individuals can have only one Trump Account at any time.
The Trump Account is fully in the child’s name. The parent or legal guardian is responsible for the account until the child turns age 18. After the calendar year in which the beneficiary reaches age 18, the account generally becomes subject to traditional IRA distribution rules. A Trump Account is established by completing IRS Form 4547 “Trump Account Election(s)” and filing this form with the parent or legal guardian’s income tax return or submitting online via TrumpAccounts.gov or the Trump Accounts app.
According to TrumpAccounts.gov projections, the $1,000 US Treasury contribution alone could be worth $6,000 at age 18, $15,000 at age 27 and $243,000 at age 55. Adding an annual $5,000 contribution to the account could be worth $271,000 at age 18 and $742,000, at age 27 and $13 million at age 55 (assuming historical S&P 500 averages). The Trump Account must be invested in unleveraged mutual funds or ETFs that track a qualified index of primarily US equities, and investment fees and expenses cannot exceed 0.1%. During the growth period, Trump Account custodians generally must limit investment options to eligible investments and promptly invest uninvested funds in a default eligible investment, subject to limited operational exceptions.
At launch, all accounts are automatically placed in the default State Street SPDR Portfolio S&P 500 ETF (SPYM). In the coming months, the US Treasury will roll out functionality to allow account holders to diversify across other approved, low-cost options, which include:
- iShares Core S&P 500 ETF (IVV)
- Vanguard Total Stock Market ETF (VTI)
- State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM)
- iShares Core S&P Total U.S. Stock Market ETF (ITOT)
The contributions from individuals are not tax-deductible (i.e., they create basis in the account) while the contributions from others (employers, governments, and non-profits/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 growth period, beneficiaries may have access to traditional IRA options, potentially including a taxable Roth conversion if otherwise permitted under applicable IRA rules.
After the initial Trump Account is established as discussed above, and once Treasury announces procedures, Trump Accounts can be fully transferred to another trustee that offers Trump Accounts. Other firms that will offer Trump Accounts have not yet been announced but are generally going to be a bank or brokerage firm that is eligible to custody IRAs and that will also satisfy the extensive reporting and account administration requirements which are different than those that apply to traditional IRAs.
To open a Trump Account, visit https://trumpaccounts.gov/ .
(This article updates “What to know about Trump Accounts," published on 22 December 2025, and 20 February 2026 with additional details and resources.)
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