What You Need to Know About Trump Accounts
NBC News breaks down eligibility, contribution limits, employer and philanthropist pledges, and the July 5, 2026 account launch date.
Based on federal law & IRS guidance — updated Jan 2026
The complete guide to
Trump Accounts
Federally created child investment accounts — with a $1,000 government seed, tax-deferred growth, and automatic conversion to a Traditional IRA at age 18. Independent, nonpartisan, and up to date.
Independent & nonpartisan
Based on One Big Beautiful Bill Act (2025)
3M+ children enrolled as of Feb 2026
$1,000
Federal seed contribution at birth
$5,000
Annual family contribution limit
0.10%
Maximum allowed fund expense ratio
Age 18
When account converts to Traditional IRA
Get your answer
What do you want to know?
Eligibility Checker
Does my child qualify?
Answer two questions for an instant answer on the $1,000 federal seed.
Growth Calculator
How much could it grow?
Estimate your child's balance at age 18 based on your annual contributions.
Projected balance at age 18
$107,373
Includes $1,000 federal seed • Assumes 7% annual growth
Federal seed alone (no contributions)
$3,380
With your contributions
$107,373
Latest news
Recent updates
Treasury: Trump Accounts Sign Up About 3 Million Kids in Early Push
Treasury Secretary Scott Bessent announced ~3 million children enrolled through 2 million Form 4547 filings, boosted by the Super Bowl 60 ad and TrumpAccounts.gov.
President Trump Delivers Live Remarks on Trump Accounts
At a White House event with Treasury Secretary Bessent and Nicki Minaj, Trump called the program one of the most transformative policy innovations of all time.
Overview
How Trump Accounts work
A three-phase lifecycle from birth to adulthood.
Full how-it-works guide →Account opened at or after birth
A parent or guardian opens a Trump Account on behalf of a child with a U.S. Social Security number. Children born 2025–2028 automatically receive a $1,000 government deposit invested in a broad U.S. stock index fund.
Contributions grow, tax-deferred
Families can contribute up to $5,000 per year (plus up to $2,500 from employers). All funds must be in a low-cost U.S. index fund (expense ratio ≤ 0.10%). No withdrawals before age 18.
Converts to a Traditional IRA at 18
On January 1 of the year the child turns 18, the account automatically becomes a Traditional IRA. The young adult can use funds for retirement, a first home purchase, education, disability, and other IRA-qualified uses.
Key features
What makes Trump Accounts distinctive
Federal seed money
U.S. citizen children born 2025–2028 receive a one-time $1,000 government deposit — no extra application required beyond a tax form checkbox.
Index-fund only
By law, all funds must be invested in broad U.S. stock market index funds. No individual stocks, no sector bets, no money market accounts.
Ultra-low fees required
Fund expense ratios are capped at 0.10% annually — lower than most 401(k) plans and far below typical actively managed funds.
IRA conversion at 18
At age 18, the account seamlessly becomes a Traditional IRA — giving the young adult access to the full range of IRA withdrawal rules and exceptions.
Flexible qualified uses
After age 18, funds can be used for retirement, a first home purchase (up to $10,000 lifetime), education, disability, and other IRA-standard exceptions.
Employer contributions allowed
Employers can contribute up to $2,500 per year per employee's child — separate from the family's $5,000 annual limit.
Common questions
Frequently asked questions
Is a Trump Account actually available now?
The One Big Beautiful Bill Act was signed July 4, 2025. Families can elect a Trump Account by checking a box on Form 4547 during tax filing. Accounts are set to go live for deposits and investing on July 4, 2026. As of early 2026, hundreds of thousands of families had already filed.
My child was born before 2025 — can they still get an account?
Yes. Any child under 18 with a Social Security number can have a Trump Account opened for family contributions — up to $5,000 per year. The $1,000 federal seed is only for children born January 1, 2025 – December 31, 2028. Children born 2015–2024 may also qualify for a $250 Dell Foundation contribution. Check your full eligibility →
How is this different from a 529 plan?
A 529 plan is optimized for education expenses — higher contribution limits and better tax treatment for qualified education costs. A Trump Account is a broader investment vehicle that converts to a Traditional IRA at 18, with access for retirement, housing, education, and more. Many financial advisors suggest using both. See full comparison →
Why is it called a "Trump Account"?
The accounts were proposed and signed into law during President Trump's second term — similar to how "Roth IRA" was named after Senator William Roth. The program was also called "MAGA Accounts" (Money Accounts for Growth and Advancement) during the legislative process. The official name appears in the One Big Beautiful Bill Act of 2025.
Explore the guide
Everything you need to know
What Is a Trump Account?
Full definition, legislative background, and a quick-facts box with the essentials at a glance.
How It Works
Step-by-step: eligibility, opening an account, contributions, investments, and withdrawal rules.
Rules & Limits
Contribution limits, eligibility requirements, investment restrictions, and withdrawal rules.
Compare Your Options
Side-by-side comparison with 529 plans, custodial accounts, and Roth IRAs — when each is right.
How to Open (Form 4547)
Step-by-step: file Form 4547, claim the $1,000 seed, and choose a custodian.
FAQ
Answers to the most common questions, including disambiguation from other uses of "Trump accounts."
Glossary
Plain-English definitions of key terms: tax-deferred, index fund, custodial account, beneficiary, and more.
Updates & News
Latest IRS guidance, implementation milestones, and policy changes as the program goes live.