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TRUMP ACCOUNTS:
What is a Trump Account?
A Trump Account is a tax-deferred savings account for children under 18. The accounts are designed to grow with investment earnings over time, and when the child becomes an adult, the accounts generally function like a traditional IRA.
Who is eligible?
Any child under 18 with a valid Social Security number may open a Trump Account. Parents or guardians must set up and manage the account until the child turns 18.
What is the $1,000 government contribution?
The parent or guardian of a child born between calendar year 2025 and 2028 who is a U.S. citizen with a valid Social Security number may choose to have a one-time $1,000 contribution made by Treasury to the child’s Trump Account. This contribution does not count against the annual $5,000 contribution limit. This benefit is available for these children so long as the account is opened before the year in which the child turns age 18.
Who can contribute to a Trump Account?
Children, parents or guardians, grandparents, family members, friends, and employers (with the first $2,500 per employee per year excluded from the employee’s income) may make contributions. Additionally, qualifying charitable organizations and government entities (e.g., states, tribes, localities, etc.) may make contributions for all children in a “qualified class” (e.g., all children born in a year, all children in a state, all children nationwide, etc.).
How much can be contributed each year?
The annual contribution limit is $5,000 total per child, with cost-of-living increases after 2027. Qualifying charitable organizations and government entities may make additional contributions that do not count toward the $5,000 limit.
When do contributions begin?
Contributions to Trump Accounts will be accepted starting July 4, 2026.
Can money be withdrawn before age 18?
No. Funds may not be withdrawn before the child turns 18, except for a rollover of the entire account to a Trump Account with another brokerage (trustee-to-trustee transfer), certain rollovers to an ABLE account in the year the child turns 17, or distribution upon death. After age 18, standard IRA rules for withdrawals apply.
What happens when the child turns 18?
At age 18, the account is generally treated like a traditional IRA. The account holder may continue contributing subject to IRA rules and earned income requirements. Withdrawals follow traditional IRA rules and the account holder may be subject to a 10% additional tax for any withdrawal before age 59 ½, unless an exception (such as for distributions for higher education expenses or first home purchases) applies.
How do I open a Trump Account for my child?
Use IRS Form 4547 to make the election to establish an initial Trump Account for the exclusive benefit of a child who is eligible; also use Form 4547 to make an election for the $1,000 pilot program contribution from the U.S. Treasury to the child’s Trump Account if they are eligible for the contribution. After the election is made, beginning in May 2026, Treasury or its agent will send information to the individual who made the election to activate the account through an authentication process and complete the opening of the initial Trump account.
When can I open a Trump Account for my child?
Once it is available, IRS Form 4547 can be filed at any time. Beginning mid-2026, these elections can also be made through an online account at trumpaccounts.gov.
Where will the Trump Account be held? Can I use my preferred brokerage firm?
All Trump Accounts will initially be created and held with Treasury’s designated financial agent. At a later date, parents or guardians will be able to transfer the full balance of a Trump Account to their preferred brokerage firm through a simple trustee-to-trustee rollover.
Can my employer offer Trump Account contributions through a cafeteria plan?
Yes. Pre-tax salary-reduction contributions will be allowed to Trump Accounts owned by an employee’s dependent child through an employer-sponsored cafeteria plan, up to $2,500 per employee per year.
For more information, visit www.trumpaccounts.gov
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