Trump Accounts – The Basics

The One Big Beautiful Bill Act passed in July 2025 established the 530A account, a new type of tax-advantaged IRA designed specifically for children. Better known as Trump accounts, these IRAs are designed to help children enter adulthood with greater financial security. A Trump account is subject to certain special rules on contributions, investments, distributions, and reporting that are different than other IRA arrangements.

The account features a pilot program contribution of $1,000 from the federal government for children born between January 1, 2025, and December 31, 2028. While the pilot contribution is one-time, families can contribute up to $5,000 per year per child after the program starts in July 2026. Families of children born before January 2025 who are younger than 18 years of age can open Trump accounts even if they don’t qualify to receive the pilot contribution.

To qualify for an account, a child must have a Social Security number, be under 18 years of age on December 31 of the year the account is opened and have an account election filed on their behalf. Each child may only have one Trump account. Children receiving the pilot contribution must be US citizens.

How do I open a Trump account?

A parent, guardian, or other authorized individual electing to open a Trump account for a child  must complete and file Form 4547. The same form is used to make an election for the $1,000 pilot program contribution for a qualifying child. Be aware that there are rules defining “authorized individual,” so these accounts cannot be opened by just anyone. For example, a grandparent is not an authorized individual if the child has a parent or legal guardian.

The fastest, safest, and easiest way to make the election is to file the Form 4547 with your current-year e-filed tax return. If that’s not feasible, you can file the form on an online portal (not available yet) beginning sometime in July 2026. You can also mail a paper Form 4547 to the address you use to file your tax returns. Note that Form 4547 cannot be e-filed with an amended tax return.

Once Form 4547 is filed, the IRS will contact parents to activate the accounts through an authentication process.

What is the growth period of a Trump account?

The growth period for a Trump account starts on the day the account is established and ends on December 31^st of the year before the calendar year in which the child turns age 18. For example, a child born on October 1, 2025, would turn 18 on October 1, 2043. Therefore, the last day of the growth period for this child would be December 31, 2042.

What are the special rules during the growth period?

During the growth period, special rules apply to the Trump account, including the following:

• Funds in the account can only be invested in eligible investments.
• Contributions are limited to $5,000 per year, different than contribution limits for  other IRAs.
• Contributions to Trump accounts are not tax deductible.
• In general, no withdrawals are allowed during the growth period.

What are the contribution rules?

Individuals, employers, and government and charitable entities can contribute to the accounts, up to a total of $5,000 per year. Annual contributions to Trump accounts do not affect how much a beneficiary can contribute to other IRAs. For example, a teenager with a job may have earned income that allows them to contribute to a traditional or Roth IRA. Contribution to these types of IRAs does not reduce the amount they can contribute to the Trump account for that year.

What happens to the Trump account when the child turns 18?

When an account beneficiary turns 18, the Trump account converts to a standard IRA, and the beneficiary is given ownership and control of the funds. Funds from the account can be used immediately for things like education or a first home without early withdrawal penalties. It can also be left to grow tax-deferred, but the funds become subject to traditional IRA rules. Alternatively, the account can be rolled over into other IRA types such as Roth IRAs.

What is the difference between a Trump account and a 529 plan?

Trump accounts and 529 plans are both tax-advantaged savings tools for children, but serve different purposes: Trump accounts are broader, acting as government-seeded IRA vehicles for flexible long-term goals (housing/business), while 529s provide tax-free growth strictly for education.

I have more questions about these accounts

So do we! The Department of the Treasury and the Internal Revenue Service  issued proposed regulations on March 9, 2026, providing guidance on the Trump account contribution pilot program. The regulations are subject to a comment period and then Treasury will presumably issue final regulations. Proposed regulations that will govern how the Trump account program will be administered have also been issued. Until the regulations are finalized, we will keep an eye out for new developments and additional information and will let you know what we find out.