A Trump Account is a special type of tax‑advantaged retirement investment account for children, created under federal law and administered by the U.S. Treasury and IRS. It is not a social‑media account or anything related to Donald Trump personally — it’s a government savings program named in the legislation. Here’s the clear breakdown of what it is and how it works.
What a Trump Account is
A Trump Account is a child IRA established under IRC §530A, designed to give minors an early start on long‑term investing. It functions similarly to a traditional IRA but with special rules until the child turns 18.
Key characteristics:
- It is held in the child’s name.
- A parent or guardian acts as custodian until age 18.
- It is tax‑advantaged, meaning investment growth is tax‑deferred like a traditional IRA.
- It was created under the One Big Beautiful Bill Act (OBBBA).
Who is eligible?
Any U.S. child who:
- Is under 18, and
- Has a valid Social Security number.
There are also special federal and charitable contributions depending on birth year:
- $1,000 federal deposit for children born 2025–2028.
- $250 charitable deposit (Michael & Susan Dell Foundation) for children under age 10 born before 2025.
How contributions work
Parents or guardians can contribute up to an annual cap (adjusted for inflation).
To open or elect the account:
- Sign in to your IRS account (via ID.me).
- Submit Form 4547 to elect your child.
- Check the status online.
The process typically takes 5–10 minutes.
How the money grows
Investment options are limited to low‑cost index funds, such as:
- S&P 500 mutual funds
- Broad U.S. equity ETFs
This keeps fees low and encourages long‑term growth.
When the money can be used
Before age 18:
- Funds are restricted under special rules unique to Trump Accounts.
After age 18:
- The account converts to a regular traditional IRA, and standard IRA rules apply.