Trump Accounts went into effect on July 4, 2026, at which point you could open this tax-advantaged account to give your child a head start on saving for the future. By the end of July, 7 million accounts had been opened, according to the US Treasury. Unlike opening some other kinds of financial accounts, which you can often do directly with a financial institution, Trump Accounts call for a different process. On October 1, the US Treasury announced that all children under age 18 will be automatically enrolled. Until more details on that process surface, here's how to open a Trump Account.
What are Trump Accounts?
A 530A Trump Account (530A references the relevant tax code section) is a custodial-style traditional individual retirement account (IRA) established for an eligible child. The child owns the assets, while an adult acts on their behalf until they reach age 18. Children born between January 1, 2025, and December 31, 2028, qualify to receive a one-time $1,000 seed contribution. Any child under age 18 with a Social Security number is eligible for a Trump Account, even if they're not eligible for the seed contribution. Children may be eligible for other sources of funding through charitable contributions (e.g., Dell contributions with certain criteria) and employer matches/contributions.
How to open a Trump Account
You'll need to go through the account claiming process in the Trump Accounts app or on the Trump Accounts website. As part of claiming, you'll need to verify your identity, then answer a few additional questions to confirm your legal authority to claim the account, such as your relationship to the child. This establishes that you're the appropriate person to take on the Responsible Party role. If you've already submitted an application to open a Trump Account, you don't need to go through the claiming process.
How to get the $1,000 government money
The Treasury opening a Trump Account for an eligible child and you electing to receive the $1,000 Pilot Program Contribution are 2 separate processes. The Treasury may open a Trump Account for your child regardless of whether your child is eligible for the pilot contribution. To receive the $1,000 Pilot Program Contribution, an authorized individual must make a separate election for an eligible child, which you can do on the Trump Accounts app as part of the claiming process. Good to know: The $1,000 seed money does not count toward the $5,000 annual contribution limit. Also, only one funded Trump Account is allowed per child.
Who else is donating to Trump Accounts?
Michael and Susan Dell pledged $6.25 billion for children age 10 and under born before January 1, 2025. The first 25 million children to sign up for a Trump Account who live in a ZIP code with a median family income of $150,000 or less receive $250. There is no separate Dell application. When you open a Trump Account, if the child qualifies, the $250 will be deposited into the account. The $250 does not count toward the $5,000 annual contribution limit. Nor are such contributions considered taxable income for the beneficiary.
Through Dalio Philanthropies, Ray and Barbara Dalio pledged $75 million for about 300,000 children, or $250 per child, living in a Connecticut ZIP code with a median family income of $150,000 or less.
People have also started receiving contributions from other donors to Trump Accounts including: Gwynne Shotwell of SpaceX (for qualifying children, particularly in Texas); Brad Gerstner of Altimeter Capital (for qualifying children in Indiana), and Harold Hamm of Continental Resources (for qualifying children in Oklahoma).
Advantages to opening a Trump Account
The advantages to opening a Trump Account include:
- A head start on a child's retirement, plus they could benefit from years of tax-advantaged compounding potential growth.
- Possible $1,000 in federal seed money if your child qualifies.
- Possible additional contributions from business leaders/philanthropists.
- Possible employer match of up to $2,500 per year, which will not count toward the employee's taxable income but will count against the annual $5,000 contribution limit. This annual limit is tied to inflation and could increase in 2027.
- When the child turns age 18, they can convert the Trump Account into a Roth IRA, which allows for tax-free withdrawals if certain conditions are met.1
- You don't have to file a gift tax return as long as contributions fall below the annual gift limit ($19,000 in 2026).
Drawbacks to opening a Trump Account
The drawbacks to opening a Trump Account include:
- Annual contribution limit of $5,000 versus higher or no contribution limits for other savings vehicles for kids. Some of these other accounts may make more sense, depending on the purpose. If you're saving for education, for example, consider a 529, which has higher contribution limits and features tax-free withdrawals for qualified educational expenses and potential state benefits, depending on your plan and eligibility.
- Contributions are not tax-deductible. Because contributions are after-tax, though, they won't be taxed when withdrawn. Any earnings, however, will be taxed as ordinary income, but they could compound tax-free for years.
- Potential kiddie tax consequences. If you're planning to convert a Trump Account to a Roth IRA, know that any amount above $2,700 will be taxed at the parent's income tax rate. There are ways to avoid the tax, like waiting to convert the account until the child reaches age 24. You may want to consult with a tax professional to understand your options.
- Potential complicated taxes on withdrawals. This is because accounts could have a mix of pre-tax contributions (from the government, some charities, and employers) and after-tax ones (from individuals).
- No withdrawals before age 18 (except for limited rollovers and death of beneficiary). Early withdrawals (before age 59½) are typically taxable and may face a 10% penalty unless an exception applies.2
- Investments are limited to standardized, US market-based index investments until the child is 18, limiting the diversification options of the account.
How to invest a Trump Account
When you open a Trump Account, it is invested in a low-cost exchange-traded fund (ETF) that tracks the S&P 500®.3 The US Treasury will announce when you can roll over the account to another institution. No matter where you move it, all investment options must meet the government criteria of low-cost index funds that track the US stock market.
How to roll over a Trump Account to Fidelity
The Treasury will issue guidance when you can roll over your Trump Account. If you transfer your Trump Account, you will be allowed to stay invested in the default fund when you opened it. Sign up to learn when transfers to Fidelity become available.
What happens when the child turns age 18?
In the year the child turns age 18, the account becomes a traditional IRA that they own. Normal IRA rules apply regarding contributions (the child must have earned income), contribution limits and deadlines, and withdrawals/distributions.