The federal government has introduced an innovative savings vehicle designed to help families build long-term wealth for their children. Trump accounts, established under the One, Big, Beautiful Bill Act, (OBBBA) combine the tax advantages of traditional IRAs with special features tailored for children under 18.
What is a Trump Account
A Trump Account is a special type of savings account created for children under 18. It works like a traditional IRA, but with extra rules designed to help minors build long-term savings safely. Think of the account as a "starter IRA" for your child. While traditional IRAs require earned income and have complex rules, Trump accounts are specifically designed for children, with simplified contribution rules and protective investment restrictions during the critical growth years.
Key advantages include
- No earned income requirement for your child
- Potential $1,000 government contribution for eligible children
- Protected investment in low-cost index funds
- Tax-deferred growth until withdrawal
- Flexibility after age 18 to use funds for education, home purchase, or retirement
Getting Started: The $1,000 Opportunity
If your child was born between January 1, 2025, and December 31, 2028, you may be eligible for the pilot program contribution—a $1,000 deposit from the government directly into your child's Trump account. This is essentially free money to jumpstart your child's savings.
To qualify, your child must
- Be your qualifying child for tax purposes
- Be a U.S. citizen
- Have a Social Security number
You can apply for both the account and the pilot program contribution simultaneously using IRS Form 4547 or through the online portal at trumpaccounts.gov (available mid-2026).
Contributions
Trump accounts offer multiple ways to build savings:
- Family Contributions (Up to $5,000/year) — You, your spouse, grandparents, or anyone else can contribute up to $5,000 annually (for 2026-2027) to your child's account. Unlike traditional IRAs, these contributions aren't tax-deductible, but they create "basis" in the account—meaning those dollars won't be taxed when eventually withdrawn.
- Employer Contributions (Up to $2,500/year) — If your employer offers a Trump account contribution program, they can contribute up to $2,500 annually to your child's (or children's) Trump accounts. These contributions are excluded from your taxable income—a valuable benefit that doesn't reduce your contribution limit.
- State and Charitable Contributions — States, tribal governments, and charitable organizations can make "qualified general contributions" to groups of Trump accounts. For example, your state might contribute $100 to every Trump account for children born in a specific year or living in your state.
Investments
During the growth period (until your child turns 18), Trump account funds must be invested in "eligible investments"—low-cost mutual funds or ETFs that track broad U.S. market indexes like the S&P 500. These rules are designed to protect your child's savings during the critical accumulation years while still providing exposure to long-term market growth. Risky or high-fee investments are not allowed.
Flexibility at 18: Multiple Options
When your child reaches 18, the account transforms into a traditional IRA with full flexibility.
Your child can:
- Leave funds invested for retirement (no required distributions until age 73)
- Withdraw funds for qualified education expenses (avoiding the 10% early withdrawal penalty)
- Use funds for a first-time home purchase (up to $10,000 penalty-free)
- Convert to a Roth IRA for tax-free growth going forward
- Take distributions for any reason (subject to regular income tax and potentially a 10% penalty)
To open a Trump account
Continue to check trumpaccounts.gov for the latest information.
- Complete Form 4547 or use the online tool: (available mid-2026 at trumpaccounts.gov)
- Apply for the pilot program if your child was born between 2025-2028
- Activate the account when you receive information from the Treasury Department (starting May 2026)
- Make your first contribution (no earlier than July 4, 2026)
- Choose investments from the eligible options provided by your trustee
Note: The information on the Trump Account is intended for information and educational purposes only. Interactive Brokers will continue to update and to share additional information as details are finalized.