Trump Accounts: What Parents Need to Know
Trump Accounts are a new type of tax-advantaged account for children created by the Working Families Tax Cuts law. Eligible children receive a one-time $1,000 contribution from the federal government, and families and employers can add contributions each year.
Source: IRS — Working Families Tax Cuts: individuals and workers
The $1,000 seed contribution
- For U.S. citizen children born between January 1, 2025 and December 31, 2028.
- One-time federal pilot contribution of $1,000 per eligible child.
- An SSN is required for the child.
Annual contributions
- Up to $5,000 per year per child from all sources combined.
- Employers may contribute up to $2,500 per year, which counts toward the $5,000 cap.
- Contributions are not tax-deductible; growth is tax-deferred.
- Accounts cannot receive contributions before July 4, 2026.
How the money is treated
- The account is a form of individual retirement account owned by the child.
- Funds generally cannot be withdrawn until the child turns 18, after which IRA-type rules apply.
- Details continue to be defined by IRS and Treasury guidance — check back as the July 2026 launch approaches.