Trump Accounts: A Parent's Guide

A Trump Account is a type of individual retirement account (IRA) set up for a child under Section 530A of the Internal Revenue Code. Money in the account is invested in diversified U.S. stock index funds and can grow over the child's lifetime.

During the 'growth period' — generally until the end of the year the child turns 17 — withdrawals are restricted. After that, the account generally follows traditional IRA rules.

An account can be set up for any U.S. child under 18 (at the end of the year of the election) who has a valid Social Security number.

The Treasury began automatically enrolling eligible children on October 1, 2026, and more than 70 million accounts have been reported as created. Parents or guardians still need to claim and activate the account to manage it.

U.S. citizen children born between January 1, 2025 and December 31, 2028 can receive a one-time $1,000 'pilot program' deposit from the federal government.

To get it, a parent or guardian must make an election using IRS Form 4547 — through the official Trump Accounts app, trumpaccounts.gov, or their IRS Individual Account. The $1,000 does not count toward the yearly contribution limit.

Individuals can contribute up to $5,000 per child per year (2026 limit, adjusted for inflation after 2027). Employers can contribute up to $2,500 a year, which counts toward the $5,000 total.

Contributions above the limit face a 6% tax each year until they are removed.

President Trump has said Musk's pledged shares would be distributed through Trump Accounts in 2027. Full terms have not been published.

Donations to Trump Accounts must come through a 501(c)(3) charity, private foundation or donor-advised fund and need Treasury approval. Under current temporary Treasury rules, reported by CNBC, families cannot decline gifted stock, and gifted shares generally cannot be sold until the earlier of five years or the end of the year the child turns 17.

Michael and Susan Dell contributed $6.25 billion — $250 each for about 25 million children born between 2016 and 2024 in ZIP codes with a median family income of about $117,300 or less, plus children on military bases. Those cash deposits were reported as completed by October 9, 2026.