530A Trump Account FAQs

Your child can have a Trump Account if they're a US citizen with a valid Social Security number and will be under 18 for rest of the current calendar year. However, only children born between January 1, 2025, and December 31, 2028, are eligible for the $1,000 government seed contribution. The account setup and funding aren't automatic. To open an account, apply using IRS Form 4547. If your child qualifies for the seed contribution, the US Treasury will fund the account with $1,000.

For children born between 2025–2028 who are claiming the $1,000 government contribution, someone who expects to claim them on their taxes needs to open the account. This is usually a parent or legal guardian. For children who won’t get the $1,000 government contribution, a parent or legal guardian should still be first in line to open the account. If they can’t open it, the IRS prioritizes an adult sibling as the next option, followed by a grandparent.

Later this year, you'll be able to transfer your Trump Account from the US Treasury to Fidelity. From then on, you can manage the account and make contributions through Fidelity. We'll share details about when and how to transfer your account as the Treasury shares additional guidance. Before you can transfer your account, you'll need to open an account by applying with IRS Form 4547 at TrumpAccounts.gov.

A 529 plan can offer more tax advantages if your goal is to save for your child's education, with tax-free withdrawals on qualified education expenses. However, if your child qualifies for the $1,000 government seed contribution, or if your employer offers a matching Trump Account contribution, it may make sense to take advantage of those opportunities. From there, how you prioritize any future contributions to the account may depend on your savings goals.

Trump Accounts are a new type of account for children under 18, meant for early saving and investing for their retirement. TrumpIRA.gov is a website that the federal government is creating, not a new type of account. The new site is designed to share information about low-cost IRA account options, to help people who may not have access to a retirement plan through their employer.

Any individual can contribute, including parents, family members, and friends. Individual contributions are made with after-tax dollars and are not tax-deductible. Qualifying children may get a $1,000 government contribution when the account is created, and some employers and private donors have also pledged contributions. The total contributions to each child's account from individuals and employers combined can't exceed $5,000 per year.

Before age 18, the account is in your child’s name but managed by a custodian. When your child turns 18, control transfers to them and the account can be transferred to a traditional IRA in their name. At that point, they can choose to withdraw funds following traditional IRA withdrawal rules. The investment rules also become more flexible at 18—your child can start to choose from a broader range of investments and adjust their portfolio more freely.

While your child is under 18, their Trump Account can only be invested in low-fee US market–based index investments. These could be mutual funds or exchange traded funds (ETFs) that track a broad index of primarily US companies, like the S&P 500. You can’t invest these funds into individual stocks, bonds, foreign markets, or specific sectors.

Generally, you can't take withdrawals from the account while your child is under 18. When your child turns 18, they take ownership of the account. After age 18, the account rules are like a traditional IRA withdrawals are generally taxed as ordinary income and could have a 10% early withdrawal penalty if taken earlier than age 59½. There may be exceptions on the early withdrawal penalty if the money is used for certain reasons after age 18, such as up to $10,000 to buy their first house or for qualified education expenses.

Any potential earnings in the account grow tax deferred, meaning you won't pay taxes on money that's still invested. After your child turns 18, the account has rules like a traditional IRA, with ordinary income taxes on withdrawals of earnings. Contributions made by individuals (like parents and grandparents) were already taxed, so they're withdrawn tax-free. Other contributions, including those from employers and the government, are taxed when withdrawn.

After your child turns 18, they may be able to convert their account to a Roth IRA. The same Roth conversion rules that apply to traditional IRAs would apply to this conversion. We'll share more details about Roth conversions for Trump Accounts as the IRS shares additional guidance.