Last updated: March 26, 2026
A Trump Account is the official name for the new children’s long-term savings vehicle created under the One Big Beautiful Bill Act (Public Law 119-21) and codified in the Internal Revenue Code as 26 U.S.C. § 530A. It is designed to help families save for a child’s future with tax-advantaged growth and a government seed contribution.
Every child born between January 1, 2025 and December 31, 2028 automatically qualifies for a $1,000 government seed deposit. Any minor under age 18 who has a valid Social Security number may also open an account.
Parents/guardians must actively elect to open the account by filing IRS Form 4547 with their 2025 tax return (due April 15, 2026) or by using the official online portal at trumpaccounts.gov. The account is not opened automatically.
No contributions (including the $1,000 government seed) may be made before July 4, 2026. That is the official funding and rollover activation date.
Annual contribution limit is $5,000 per child. Employers may contribute up to $2,500 per year to an employee’s dependent child’s account (this counts toward the overall $5,000 limit).
Under Section 530A(g), investments are restricted to broad-based U.S. equity index funds or ETFs that track a qualifying index (e.g., S&P 500 or total market) and carry an expense ratio of 0.10% or lower. Leverage, individual stocks, and most actively managed funds are not permitted in the default rules.
Yes. Beginning mid-2026, trustee-to-trustee rollovers from the Treasury’s default custody to a private custodian (Fidelity, Schwab, Vanguard, Empower, etc.) are allowed. This is how most families will move the account to their preferred financial institution.
Yes. Several major firms (including Charles Schwab, Empower, Robinhood, SoFi, and others) have announced they will match all or part of the $1,000 government seed for eligible employees’ children. Check with your employer’s benefits department.
Trump Accounts are a separate statutory vehicle with their own contribution limits, investment restrictions, and government seed. They are not a replacement for 529 plans or custodial Roth IRAs — many families will use all three vehicles side-by-side.
Visit the official government site: trumpaccounts.gov
IRS guidance: irs.gov/trumpaccounts
Proposed regulations (March 2026): Federal Register / IRS Notice 2025-68
