Key insights
- Trump Accounts are a newly created retirement savings vehicle for minors. When the beneficiary turns 18, the account automatically becomes a traditional IRA.
- Children born in 2025 through 2028 may qualify for a federal $1,000 pilot contribution.
- The IRS released guidance outlining how accounts will be opened, funded, and administered.
Are Trump Accounts a good savings tool for your family?
Trump Accounts are a new tax‑advantaged way to help children build long‑term financial security.
Recent IRS guidance clarified how Trump Accounts work, how families can open them, and what contributions are allowed.
If you have children, grandchildren, or dependents born in or after 2025, these accounts could offer meaningful opportunities, especially during the program’s early years.
How Trump Accounts work
Opening an account
The IRS has released Form 4547, which parents or legal guardians can use to elect and open an account for an eligible child. These are expected to be available by July 4, 2026. An online option to open the accounts may be available at trumpaccounts.gov in mid-2026.
Whoever files Form 4547 becomes the responsible party, which means they control investment decisions, manage rollovers, and name a successor responsible party, up until the child’s 18th birthday.
Initially, all Trump accounts will be opened at custodians selected by the U.S. Treasury. After the first funding, the responsible party may transfer the account to another qualified custodian.
Transition at age 18
On the beneficiary’s 18th birthday, a Trump Account becomes a standard IRA. At that point, normal IRA withdrawal and penalty rules apply. The account can also be rolled into a traditional IRA.
Federal pilot program: $1,000 seed contributions for eligible children
Children born in the United States between January 1, 2025 and December 31, 2028 may qualify for an initial $1,000 federal deposit, but families must specifically elect the contribution using Form 4547 or the online tool.
Five ways Trump Accounts can be funded
Trump Accounts allow contributions from five distinct sources:
- Federal pilot program contributions
- Qualified general contributions from government entities or 501(c)(3) organizations
- Employer contributions
- Qualified rollovers from another Trump Account
- Individual contributions
Gift tax considerations
When someone other than the beneficiary contributes to the account, the IRS is expected to treat it as a gift. While similar transfers have historically been treated as “present interest” gifts qualifying for the annual exclusion ($19,000 in 2026), no official guidance has been issued yet. Contributors should include these gifts when preparing Form 709.
Qualified general contributions: New opportunities ahead
Government bodies and nonprofits may apply to make qualified general contributions to groups of eligible children. These contributions may be limited based on geographic area or age range.
For example, Michael and Susan Dell announced a $6.25 billion pledge — up to $250 for the first 25 million qualifying accounts — for children age 10 and under in ZIP codes with median household incomes below $150,000.
More regulatory guidance is expected, especially around geographical limits. Families living in qualifying ZIP codes may want to consider opening accounts early to benefit from future approved contributions.
Employer contributions for Trump Accounts
Employers may contribute up to $2,500 per employee toward the Trump Accounts of an employee’s dependents, tax‑free.
If an employee has more than one dependent, the $2,500 limit applies to the total annual employer contribution. Amounts above $2,500 are treated as taxable income. Employers offering contributions through cafeteria plans should watch for additional IRS rules.
Individual contributions
Families can contribute up to $5,000 annually beginning July 4, 2026. Notably:
- Minors don’t need earned income to receive contributions
- Trump Account contributions don’t affect traditional IRA or Roth IRA limits for the contributor
Broader financial planning insights to support long‑term goals
Building financial resilience often starts with a few steady habits helping families stay prepared across different life stages. While account types and tax rules may shift over time, several guiding ideas remain helpful for parents, caregivers, and young adults:
- Build a habit of steady saving, even if the amounts are small
- Keep short‑term and long‑term goals separate to help prevent competing priorities
- Prepare for major life events such as marriage, a home purchase, or career shift
- Build financial awareness among young adults around budgeting, saving, and investing
- Review tax considerations regularly to adjust contributions, gifting approaches, or holdings
- Coordinate planning across generations
How CLA can help you understand Trump Accounts
Trump Accounts introduce new opportunities for families, employers, and donors — and they come with important decisions about taxes, savings goals, and long‑term planning. CLA can help you:
- Determine whether your child or dependent qualifies for federal or philanthropic contributions
- Compare the long‑term growth potential of Trump Accounts with 529 plans, trusts, and other savings vehicles
- Coordinate Trump accounts with ABLE accounts and explore rollover options for disability planning.
- Explore tax considerations tied to contributions, gifting, and estate planning
- Support employers interested in offering contributions as part of their employee benefits strategy
- Coordinate broader wealth strategies that connect childhood savings with family financial planning
Our team can guide you through the rules and implementation strategies so you can choose the path that fits your family or organization.
Contact us
Are Trump Accounts a good savings tool for your family? We can help model the options and advise on tax implications. Complete the form below to connect with CLA.