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From the One Big Beautiful Bill Act - Trump Accounts
Trump Accounts are a new tax-favored investment account for children created by OBBBA. They are structured like traditional IRAs, but can only be opened for eligible minors who are U.S. citizens under age 18 with a valid Social Security number issued before the account is opened and there is no earned income or income-limit requirement. Contributions are not deductible, but earnings grow tax-deferred and the account generally transitions to a traditional IRA in the year the child turns 18, after which the usual traditional IRA rules apply. During the "growth period" (generally through the year before the child turns 18), family and others can contribute up to a combined $5,000 per year (indexed after 2027), and certain employer contributions of up to $2,500 per year can be excluded from income but still count toward that same $5,000 limit. Children born in specified years (currently 2025-2028) may also receive a one-time $1,000 federal contribution.
To open a Trump Account, an "authorized individual" (such as a parent, legal guardian, adult sibling, or grandparent, depending on the situation) must file an election with the IRS on Form 4547, Trump Account Election(s), or use the IRS online tool at TrumpAccounts.gov. The election can be submitted with the authorized individual's income tax return or separately, but generally must be made before January 1 of the year the child turns 18. Once the IRS processes the election and coordinates with the account trustee, the authorized individual receives activation instructions to complete the account setup , and can also view the status of the election in their IRS Individual Online Account.
To make ongoing management easier, Treasury has released an official Trump Account app in the Apple App Store and Google Play. After filing Form 4547 or using TrumpAccounts.gov, parents and guardians should watch for an activation email (send in phases) from the official address no-reply@TrumpAccounts, and then follow the link to complete setup either in the app or on TrumpAccounts.gov. Treasury has emphasized that it will not contact families about activation by phone or text, so any such calls or texts should be treated as potential scams.
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