Trump Accounts: What You Need to Know
In a recent press release, the Social Security Administration (SSA) announced that it is launching processes to help parents enroll newborns in Trump Accounts. Last year, Congress passed legislation creating Trump Accounts—the first federal child savings accounts in the United States. Here is what you need to know about these savings accounts, which officially launched on July 4, 2026.
What is a Trump Account?
It is a federal tax-advantaged investment account which allows any U.S. citizen under the age of eighteen who has a Social Security number to grow tax-free funds for their future.
Who can open a Trump Account?
The account rules establish a priority order for the individuals who may open a Trump Account on a child’s behalf: legal guardian first, followed by parent, adult sibling, or grandparent of the beneficiary.
The Internal Revenue Service is requesting comments on whether others should be authorized to open an account and on who should be authorized to do so for foster children, orphans, emancipated minors, and wards of the state.
Who can contribute to a child’s account?
Anyone (parents, relatives, friends) or even the child can contribute up to $5,000 per year per child. Employers can also contribute up to $2,500 per year for an employee’s dependent, and these contributions are excluded from the employee’s taxable income.
Governments and nonprofits can also contribute to Trump Accounts through the Treasury Department. However, such contributions must be made in equal amounts to the Trump Accounts of every account beneficiary living in a given state or geographic area or born in a given year. These contributions are not regarded as taxable income for the beneficiary. As with employer contributions, investment returns on these contributions grow tax-free, and withdrawals are taxed as ordinary income.
Some prominent foundations have already pledged to make major contributions to Trump Accounts. Most notably, the Michael & Susan Dell Foundation committed $6.25 billion to contribute $250 to every child under the age of one.
Is the federal government chipping in?
Yes. Any child who is a U.S. citizen born in the U.S. between January 1, 2025, and December 31, 2028, and possessing a valid Social Security number, will receive an automatic one-time $1,000 contribution from the U.S. Treasury which will be invested on their behalf. These contributions do not count against the $5,000 annual limit. Only individuals who can claim a child as a dependent for tax purposes can claim the $1,000 contribution for that child.
How do I set up an account?
To establish an account for a child, fill out IRS Form 4547 through the Trump Accounts Portal, your secure IRS Individual Account, or by using the official Trump Accounts App available for both iOS and Android.
How will the funds in the accounts be invested?
All accounts will initially be managed by BNY (a major American global financial services company headquartered in New York City) in partnership with Robinhood (a California-based financial technology company), but they can be rolled over to a Trump Account at a different financial institution. An individual can only have one funded Trump Account.
What is the “growth period” and what limitations apply during this time?
The growth period is the time starting when an account is opened and lasting until December 31 of the year prior to the beneficiary turning eighteen. During the growth period, money cannot be withdrawn from Trump Accounts under any circumstances, except due to the death of the account beneficiary.
During this time, investments must track a broad index of primarily U.S. equities, avoid leverage, and carry fees no higher than 0.1%.
After the growth period, the Trump Account becomes a traditional IRA with standard IRA limitations on distributions.
When can a child access the funds in their Trump Account?
Funds generally cannot be withdrawn from a Trump Account until the calendar year the account beneficiary turns eighteen. The funds can also be left in the account and continue to grow.
What is the SSA doing to promote the use of Trump Accounts?
According to its press release, “Social Security will update guidance to hospitals to include Trump Account enrollment information. SSA will assist the states to modify their existing hospital forms used by parents to apply for Social Security numbers through the Enumeration at Birth (EAB) program to include the automatic creation of a Trump Account. Future Social Security card mailers for newborns will also include information to inform parents about the benefits of Trump Accounts and convenient and streamlined ways to open an account.”
