Trump accounts offer a new and tax-efficient way to invest for a minor’s future without the requirement of earned income.
New Trump accounts, which are a creation of the One Big Beautiful Bill Act (OBBBA), are essentially traditional IRAs for minors who do not have earned income. Parents or guardians may open accounts for their children and make contributions of their own, however, the statute also includes a pilot program authorizing federal government contributions (limited to children born between 2025 and 2029). The statute also permits additional contributions from employers, government entities and charities.
Frequently Asked Questions
Who is eligible?
All U.S. children under 18 with a valid Social Security Number are eligible to establish a Trump Account. Parents or legal guardians can open and manage accounts on behalf of their children.
How much can I contribute?
Families, friends and employers can contribute up to $5,000 per year per child.
How do employers participate?
Employers may choose to contribute to the Trump Accounts for their workers or their workers’ children, supporting early savings and financial readiness. Employers may choose to offer employees a salary reduction program under a “cafeteria plan” so that employees can make pre-tax contributions to Trump Accounts.
What will the money be invested in?
Funds will be invested in a diversified investment vehicle designed to maximize long-term growth while minimizing risk. Additional investment options will be added.
Who owns the money in a Trump account?
The money in a Trump Account (or 530A account) belongs entirely to the child, who is listed as the account owner and beneficiary.
When can funds be used?
Funds can be accessed without penalty when the child turns 18 for qualified expenses like education, or a first home purchase. Withdrawals may be subject to restrictions and would be taxed at ordinary income rates.
Can Trump Account funds be used for anything?
No, Trump Account funds cannot be used for just anything. Before the beneficiary turns 18, money cannot be withdrawn from the account under any circumstances except for the death of the child. After age 18, the account functions like a traditional individual retirement account (IRA).
How do I open an account?
You can elect to open a Trump Account for your eligible children using IRS Form 4547. You can fill out and submit the form right in the Trump Accounts app, when you file your taxes, or through the secure IRS website called Individual Online Accounts, or IOLA.
Where do I manage my Trump Account?
Download the Trump Account mobile app through the Apple App Store or Google Play, or go to TrumpAccount.com to log in, set up and manage a Trump Account. The mobile app and website will allow eligible individuals to activate the account, as well as track and manage account activity.
Can I convert my Trump Account to a Roth IRA?
Yes, you can convert a Trump Account (Section 530A account) into a Roth IRA, but only starting on January 1 of the year the account beneficiary turns 18.
