Trump Accounts
Established by the One Big Beautiful Bill Act (July 2025), Trump Accounts are custodial tax-advantaged investment accounts designed to help families build long-term savings for children.
Key Features
- Child-owned, adult-custodied account
- Limited investment options (low-cost index funds)
- Funds grow tax-deferred until age 18
- Converts to a retirement-style account at adulthood
- Long-term growth focus
Eligibility Requirements
- Any child under age 18 with a valid Social Security number can open a Trump Account.
- There are no income limitations or phase-out ranges like Traditional IRAs. However, each child is only permitted to have one funded Trump Account.
- Older children born before 2025 or after 2028 may open an account but will not receive the $1,000 contribution.
Contribution Rules
Trump Accounts allow multiple types of contributions (prior to age 18), up to a total annual limit of $5,000 per year (indexed to inflation starting in 2028):
| Contribution Type | Who Can Contribute | Amount |
|---|---|---|
| Direct (Individual) | Anyone | Up to $5,000/year |
| Employer | Employer | Up to $2,500/year* |
| Qualified General | Organizations/Government | No Limit** |
| Government Pilot | Government | $1,000 one-time** |
* Counts toward the $5,000 annual limit. ** Does not count toward the $5,000 annual limit.
A Few More Things to Know
Trump Accounts have some unique rules during a child's early years.
Where Is the Account Held?
Trump Accounts are initially established through the Treasury process with a designated trustee. After the initial account is established, the responsible party may eventually move the account to another eligible Trump Account trustee.
Only one funded Trump Account is permitted per child, so the entire account balance must transfer from one trustee to another.
How Is the Money Invested?
Investment choices are limited during the growth period. Eligible investments generally include mutual funds or exchange-traded funds (ETFs) that:
- Track an equity index primarily made up of U.S. companies
- Have annual fees and expenses of no more than 0.10%
- Do not use leverage
When Can Money Come Out?
Generally, distributions are not permitted during the child's growth period. This helps keep the account focused on long-term investing rather than short-term spending.
Limited exceptions apply, including certain rollovers, excess contributions and distributions following the beneficiary's death.
What Happens at Age 18?
Beginning January 1 of the year the child turns 18, most of the special Trump Account rules end and Traditional IRA rules generally apply.
- The account belongs to the now-adult beneficiary
- Traditional IRA rules generally apply
- Future withdrawals may be subject to taxes and penalties
Time can be a powerful wealth-building tool. Starting early gives invested dollars more time to potentially benefit from compounded growth.
Unlike a typical IRA contribution, contributions to a Trump Account during the growth period do not require the child to have earned income. The account may also receive funding from several sources, including individuals, employers, qualifying organizations and the $1,000 federal pilot contribution for eligible children.
A Trump Account is one of several ways to save and invest for a child. Families should consider how it fits alongside other options and their broader education, retirement and tax strategies.
Opening a Trump Account
A simple overview of the steps and elections.
Who Can Elect/Open a Trump Account?
A legal guardian, parent, adult sibling, or grandparent (referred to as the authorized individual and responsible party) opens the Trump Account for the eligible child by making an official election with the IRS.
There are rules governing the priority for individuals authorized to open the accounts, which must be followed. Keep in mind, the child is the account owner/beneficiary, even though the adult manages the account while the child is a minor.
Once the election is made, the account is set to be opened with the government's primary trustee for Trump Accounts. Contributions to Trump Accounts may begin July 4, 2026.
File Form 4547
On paper, or online through the IRS Individual Online Account (sign in with ID.me at IRS.gov/trumpaccounts).
Or, through the government website: TrumpAccounts.gov.
Key Elections to Make
1. Open the account
2. Claim the $1,000 pilot contribution (if eligible)
Who Can Elect
(in Priority Order)
- Legal guardian
- Parent
- Adult sibling
- Grandparent
The child is the account owner/beneficiary. The adult manages the account while the child is a minor.
Have Questions About Trump Accounts?
Pulse is here to help.
Trump Accounts are one of several ways families can save and invest for a child's future. We can help you understand how this option compares with 529 plans, custodial accounts and other investment strategies — and consider how each may fit into your family's broader financial plan.
Connect With PulseThis information is provided for educational purposes only and is based on guidance available as of September 2026. Trump Account rules and regulatory guidance may continue to evolve. Consult your financial and tax professionals regarding your individual circumstances. Investing involves risk, including possible loss of principal.