Trump Savings Accounts for Kids: Rules & Eligibility (2026)

The One Big Beautiful Bill Act (OBBBA) created a new type of savings and investment account for kids, called Trump accounts. These accounts follow traditional IRA tax rules once the child reaches age 18.

Trump accounts officially launched on Jul 4, 2026, and are available for enrollment and contributions.

Learn more about the Trump account for kids, including who’s eligible and how to contribute.

What Is a Trump Account?

Trump accounts are tax-advantaged savings and investment accounts for eligible children under the age of 18, and they are one way to invest for your kids. Children must be U.S. citizens and have a Social Security number to qualify for a Trump account.

Trump accounts can be opened for a child by parents, legal guardians, grandparents, and adult siblings, and they allow these individuals, as well as other family members, friends, and employers, to make annual contributions on behalf of the child.

Contributions are generally invested in mutual funds and exchange-traded funds (ETFs) and account balances grow tax-deferred. There is no option for other investments, such as buying stock online.

The parent, guardian, or other eligible family member who opens the account acts as its custodian until the child turns 18. While the child is a minor, Trump accounts are subject to restrictions on annual contributions, distributions, and investments.

Once the child turns 18, the account transfers to their control and they can begin making contributions of their own if they have earned income. At that time, traditional IRA tax rules will begin to apply to contributions and distributions.

Trump accounts are intended to help kids get a head start on saving for retirement. You might choose to open a retirement account for your kids if you’re fully funding your own retirement and have money to spare for saving and investing.

While custodial IRAs allow kids with earned income to save for retirement, the Trump account does not have an earned-income requirement. That means kids potentially have a longer window to benefit from the power of compounding interest, since contributions to a Trump savings account can begin at birth.

Recommended: How Custodial Accounts Work

How Does the $1,000 Government “Seed Money” Work for Newborns?

In an effort to spur interest in the Trump savings account, the federal government is offering a $1,000 seed investment for eligible newborns. This is a one-time contribution for children who are born within a specific window. Parents are not required to match this contribution.

Who Is Eligible for the Free $1,000 Deposit?

Only children who meet the eligibility requirements can receive the $1,000 seed deposit as part of the federal government’s pilot program.

An eligible child must be:

•   A U.S. citizen

•   Have a valid Social Security number

•   Be born within a specific window

The 2025–2028 Birth Window Requirements

The initial pilot window is a three-year period in which parents can claim the $1,000 seed deposit for a newborn child. This window extends from January 1, 2025 to December 31, 2028. If your child was born before the January 1 start date or after the December 31 deadline, they will not be eligible to receive the $1,000 deposit.

Trump Account Rules and Contribution Limits for 2026

The Trump account for kids is designed for eligible children who meet citizenship and Social Security requirements. Parents, family members, and employers can contribute on behalf of an eligible child, up to certain limits.

Annual Limits for Parents and Family Members

As of 2026, the maximum annual contribution limit for the Trump savings account is $5,000. Parents, legal guardians, adult siblings, grandparents, and friends can make after-tax contributions annually. Employers can also make matching contributions. The total amount contributed by individuals and employers cannot exceed the total annual contribution limit.

If your child is eligible for the $1,000 seed deposit, it won’t count against your $5,000 contribution cap. Beginning in 2028, the annual contribution limit for Trump accounts will be indexed for inflation, similar to other tax-advantaged savings accounts.

Children can contribute to their own Trump accounts once they have earned income, such as a part-time job.

How Does Employer Matching Work?

Employers can contribute up to $2,500 to a Trump account for kids on behalf of an employee’s eligible child. This amount is deducted from the $5,000 annual contribution limit. So, if you add $2,500 to your child’s account your employer can match that full amount without putting you over the limit.

This benefit also extends to kids who are employed and have a Trump account. That means if your teen is working a part-time job and making regular contributions to their account, their employer can also chip in something toward their investment goals. Any amounts contributed by an employer, up to the $2,500 annual limit, will not count as taxable income for the employee.

Eligibility: Can Your Child Get a Trump Account?

Trump account eligibility is determined by a child’s age, citizenship status, and whether they possess a valid Social Security number. Unlike traditional IRAs or Roth IRAs, parents and other eligible individuals can open Trump savings accounts for children, regardless of their annual income or whether they’re covered by an employer’s retirement plan at work.

Age Requirements and Social Security Rules

To qualify for a Trump account, a child must be under the age of 18 before the end of the calendar year in which a contribution is made. For a contribution made in 2026, the child must have been born after December 31, 2008 to qualify.

Children must be U.S. citizens and have a valid work-authorized Social Security number (meaning the child can be authorized to work in the U.S. once they’re old enough to be hired). A child does not need to have a job or earned income to qualify.

What If My Child Was Born Before 2025?

If your child was born before 2025 they’re still eligible to open a Trump savings account, as long as they meet the citizenship and Social Security number requirements. They would, however, be ineligible to receive the $1,000 seed deposit since they’re not within the approved age window.

How to Open a Trump Account: A Step-by-Step Guide

You can open a Trump account for kids through the TrumpAccounts.gov portal by downloading the Trump Accounts app, or by completing Form 4547 through the IRS website. You’ll need an ID.me account to use the IRS application portal. You’ll also need to have your child’s Social Security number, date of birth, and address ready.

Using IRS Form 4547 to Get Started

IRS Form 4547 is the designated form used to make Trump account elections. You can download the form from the IRS website or complete it electronically in your ID.me account. If you have more than two children, you’ll need to complete separate forms for each child you’d like to open an account for. Otherwise, you can list up to two kids per form.

In Part I, you’ll provide your:

•   Full name

•   Social Security number

•   Address

•   Date of birth

•   Phone number

In Part II, you’ll provide your child’s:

•   Full name

•   Social Security number

•   Address

•   Date of birth

•   Relationship to you

If your child is eligible for the $1,000 pilot program deposit you’ll also complete Part III. Part IV is where you’ll sign and date the form before submitting it.

The July 4, 2026 Launch Date

Although Trump accounts for kids could be opened before the official launch date of July 4, 2026, no contributions could be made until that time. The date was chosen to coincide with the 250th anniversary of the signing of the Declaration of Independence.

As of July 15, 2026, over 6.5 million families have signed up for Trump savings accounts, including more than 1.5 million children eligible for the $1,000 seed deposit, according to the Treasury Department.

Recommended: How to Open a Brokerage Account for Your Child

Trump Accounts vs. 529 Plans vs. UTMA Accounts

Trump accounts, 529 plans, and UTMAs (Uniform Transfer to Minors Act) accounts are designed to help kids build a solid financial foundation from an early age. The 529 account is traditionally a college savings plan, though tax law changes now allow 529 contributions to be used for K-12 private tuition and qualified student loan repayment, up to certain limits. UTMA accounts, meanwhile, offer more flexibility when it comes to how funds can be used.

Which Account Is Best for College Savings?

The best account for college savings is the one that allows you to contribute the most money, for maximum tax benefits, without impacting your child’s financial aid eligibility. Between Trump accounts, 529 plans, and UTMA accounts, only the 529 is designated specifically for higher education.

Of the three, the Trump savings account for children has the lowest annual contribution limit; 529s and UTMAs generally have no annual cap. However, you may owe gift tax for annual contributions that exceed the yearly gift tax exclusion limit. For 2026, the limit is $19,000 per recipient, or up to $38,000 per recipient for married couples who file a joint tax return and opt to split gifts.

In terms of financial aid impacts, 529 plan funds are considered parental assets when completing the Free Application for Federal Student Aid (FAFSA®). Trump accounts and UTMA accounts are considered assets of the child, which could affect their aid package.

Comparing Tax Benefits and Withdrawal Rules

Tax treatment, along with higher contribution limits, generally give 529s an edge over Trump accounts and UTMAs, at least for college savings. Here’s a side-by-side comparison of the tax benefits and withdrawal rules for all three.

	Tax Benefits	Withdrawals
Trump Savings Accounts	•   Tax-deferred growth •   Tax-free employer contributions •   Tax-free $1,000 seed deposit (for eligible children)	•   No withdrawals are allowed until the child turns 18, unless the withdrawal is a rollover to an ABLE account for a disabled child •   Withdrawals follow traditional IRA rules thereafter
529 Accounts	•   Tax-free growth when withdrawals are used for qualified higher education expenses •   Tax deductions/credits for contributions offered in selected states •   Roll over up to $35,000 in unused funds to an IRA without penalties	•   Qualified withdrawals are 100% tax-free. •   Non-qualified withdrawals are subject to 10% penalty and ordinary income tax on earnings. •   Funds can be withdrawn to pay for qualified higher education expenses, K-12 private tuition and fees, apprenticeships, or student loan interest. •   Withdrawals are not mandatory and funds may be rolled over to another beneficiary.
UTMAs	•   “Kiddie tax” rules allow for a portion of unearned income in a UTMA to be tax-free.	•   Withdrawals can be made at any time, but only for eligible expenses. •   Once the child reaches the age of majority in their state, they can use the money for anything they want.

How to Manage Your Child’s Investments

Trump accounts are investment accounts for kids, which makes them different from a traditional savings account. Currently, funds can only be invested in low-cost mutual funds or ETFs that track broad U.S. equity indices, like the S&P 500.

Creating an investment plan for your child with a Trump account begins with knowing what options you have. Your brokerage or account provider should tell you which funds are eligible. As you compare investments, consider the expense ratio or cost to own the fund, the underlying investments included in the index the fund tracks, and its overall risk profile.

Annual reviews can help you manage your child’s asset allocation to make sure it’s still aligned with your goals and risk tolerance. You can also review your contributions against the annual contribution cap to ensure you’re making the most of the account.

The Takeaway

Making the decision to invest for your kids could give them an advantage when they’re ready to head out into the real world. A Trump savings account is just one way to build a portfolio on behalf of your child while they’re young.

And if you’ve delayed saving for your own retirement, you may want to consider opening a SoFi IRA. Traditional IRAs offer deductible contributions, while Roth IRAs allow for tax-free withdrawals in retirement. Comparing each type can help you decide which may be better for funding your retirement goals.

Easily manage your retirement savings with a SoFi IRA.

FAQ

Is the $1,000 Trump Account deposit real “free money”?

A key benefit of the Trump child savings account is the $1,000 seed deposit for eligible kids born between January 1, 2025 and December 31, 2028. This money is essentially no strings attached; if your child is eligible for this benefit, you can typically claim it. The $1,000 deposit does not count against your annual $5,000 contribution limit.

Can I withdraw money from a Trump Account before my child is 18?

Withdrawals from a Trump account are not allowed before the child beneficiary turns 18. If you’d like to be able to pull money from a tax-advantaged account on behalf of your child before 18, you might consider a 529 plan or UTMA instead, both of which allow for withdrawals before age 18 within certain limits.

Do I need to have a job to open a Trump Account for my kid?

Parents do not need to prove they have a job or earned income to open a Trump account. If you do have a job, you might ask your employer if they’re open to making a matching contribution on your child’s behalf.

What can the money in a Trump Account be invested in?

The money in a Trump savings account can only be invested in low-cost mutual funds or ETFs that track broad U.S. market indexes. The range of eligible investments may be expanded later, but for now, those are the only options.

Does a Trump Account affect my eligibility for the Child Tax Credit?

Eligibility for the Child Tax Credit is based on whether you have one or more eligible dependent children, your household income, and your filing status. Opening a Trump savings account for a child does not impact your ability to claim the Child Tax Credit if you’re eligible for it.

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