Trump Accounts:
The Child Investment Account, Explained
Trump Accounts are federally created, tax-advantaged investment accounts for American children. Established by the One Big Beautiful Bill Act, they come with a $1,000 government contribution at birth and convert to a Traditional IRA at age 18.
Find out what you qualify for
Not sure if your child qualifies for the $1,000 government seed, the $250 Dell Foundation contribution, or whether you qualify for the proposed DOGE Dividend? Answer a few quick questions and get a personalized answer in under a minute.
Check My Eligibility →The phrase "Trump accounts" can sound ambiguous — it might call to mind personal bank accounts, social media accounts, or other unrelated topics. This website is specifically about Trump Accounts as a savings and investment vehicle for children, a formal category established by federal law. This is a financial and policy topic, not a political one. See the FAQ for more.
How Trump Accounts work
A simple, three-phase lifecycle — from birth to adulthood.
Account is opened at or after birth
A parent or guardian opens a Trump Account on behalf of a child with a valid U.S. Social Security number. For children born between 2025 and 2028, the federal government deposits a one-time $1,000 contribution, automatically invested in a broad U.S. stock index fund.
Contributions grow, tax-deferred
Families, relatives, and employers can contribute up to $5,000 per year (plus up to $2,500 from employers). All funds must be invested in a low-cost U.S. index fund with an expense ratio no higher than 0.10%. The account cannot be withdrawn from before the child turns 18.
Converts to a Traditional IRA at age 18
On January 1 of the year the child turns 18, the account automatically becomes a Traditional IRA. The young adult takes full control, can make new contributions subject to IRA rules, and may withdraw funds for retirement, a first home purchase, education, and other qualifying life events.
What makes Trump Accounts distinctive
U.S. citizen children born 2025–2028 receive a one-time $1,000 government deposit — no application required beyond a tax form check box.
By law, all funds must be invested in broad U.S. stock market index funds. No picking individual stocks, no sector bets, no money market accounts.
Fund expense ratios are capped at 0.10% annually — lower than most 401(k) plans and far below typical actively managed funds.
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.
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.
Employers can contribute up to $2,500 per year per employee's child — separate from the family's $5,000 annual limit.
Trump Accounts vs. other child savings options
Each account type has distinct trade-offs. Here is a quick look.
| Feature | Trump Account | 529 Plan | UGMA/UTMA Custodial |
|---|---|---|---|
| Primary purpose | Broad (retirement, housing, education) | Education expenses | General investing for a minor |
| Annual contribution limit | $5,000 + $2,500 employer | Up to $95,000 via 5-year gift tax election | No limit |
| Federal seed money | $1,000 (2025–2028 births) | None | None |
| Investment options | U.S. index funds only (≤0.10% fee) | Wide range of funds | Almost anything |
| Tax treatment | Tax-deferred; ordinary income tax on withdrawal | Tax-free growth; tax-free for education | Annual taxes; capital gains rates on growth |
| Early access | No access before age 18 | Anytime for qualified education | For child's benefit at any age |
| Account end date | Converts to IRA at age 18 | No required end date | Transfers at age 18–25 (state varies) |
Frequently asked questions
Is a Trump Account actually available now?
The One Big Beautiful Bill Act was signed into law on July 4, 2025. Families can elect a Trump Account by checking a box on Form 4547 during tax filing. Accounts are expected to go live for deposits and investing starting July 4, 2026. As of early 2026, hundreds of thousands of families had already filed the election form.
Who qualifies for the $1,000 government contribution?
U.S. citizen children with a valid Social Security number who are born between January 1, 2025, and December 31, 2028, are eligible for the $1,000 federal seed deposit. The contribution is one-time and automatically invested in an index fund when the account is opened.
Can I have both a Trump Account and a 529 plan?
Yes — and many financial advisors suggest this. A 529 plan is optimized for education expenses with better tax treatment for qualified education costs and higher contribution limits. A Trump Account builds a broader nest egg for retirement and other life milestones. They are complementary, not mutually exclusive.
Why is it called a "Trump Account"?
The accounts were proposed and signed into law during President Trump's second term and are commonly referred to by his name — similar to how "Roth IRA" is named after Senator William Roth. The program was also called "MAGA Accounts" (Money Accounts for Growth and Advancement) during the legislative process before the final name was settled. The official statutory name appears in the One Big Beautiful Bill Act.
Everything you need to know
Full definition, legislative background, and a quick-facts box with the essentials at a glance.
Step-by-step walkthrough: eligibility, opening an account, contributions, investments, and withdrawal rules.
Contribution limits, eligibility requirements, investment restrictions, and withdrawal rules in one place.
Side-by-side comparison with 529 plans, custodial accounts, and Roth IRAs for kids — when each is the right choice.
Answers to the most common questions, including disambiguation from unrelated uses of the phrase "Trump accounts."
Plain-English definitions of key terms: tax-deferred, index fund, custodial account, beneficiary, and more.
Step-by-step: file Form 4547, claim the $1,000 seed contribution, and choose a custodian when accounts go live.
Estimate your child's account balance at age 18 and at retirement based on your annual contributions.