President Trump has announced the Trump Accounts under the One Big Beautiful Bill for US children. The Department of the Treasury and the IRS recently announced the guidelines for the Trump Accounts. If you are wondering about the account, you can find the full details here.
Trump’s Account is a tax-deferred investment vehicle to save for certain child expenses when they turn 18. Contributions to the account will be invested, and it will follow some special rules. The account is a type of traditional individual retirement account to support the eligible individuals.
The initiative will deliver $1000 deposits to the millions of US children under the pilot program. The week the account receives the $6.25 billion fund from CEO Michael Dell and his wife. The investment will provide seed money to people who have just started the accounts and made automatic contributions.
Who will be eligible for Trump’s Account?
The Working Families Tax Cuts establish the Trump Account for every eligible child once the election is made when a parent or guardian opens the account. Under the Treasury Department and IRS guidance, the following individuals are eligible for the Trump Account:
- Any individual who has not attained the age of 18 before the year in which the election is made.
- Individuals for whom the election is made to establish the Trump Account and the Social Security Number are issued before the election date.
Who will receive the $1000 deposit and grant from the Dell contribution?
The US children will receive the $1000 deposit under the pilot program and other grants under the Dell contribution, if they meet the following eligibility conditions:
- US children born between 31 December 2024 and 01 January 2029 will receive the initial and one-time $1000 deposit from the US Treasury under the pilot program.
- The start-up fund from the Tech CEO of $6.25 billion will offer $250 for each recipient who comes from a household with an income under $150,000, and the qualifying child of the Trump’s accounts lives within the zip code.
What will be the type of contributions that can be made to Trump’s Accounts?
The Trump account lasts till the child turns 18; hence, let’s see what type of contributions can be made into the account:
- First, $1000 deposit for the qualifying child under the Pilot program from the US Treasury.
- The government entities, or charitable organizations, can also make a qualified contribution.
- The employer can contribute to the employee’s dependents, which is limited to $2500 per year.
- The parents and others can contribute up to $5000 in a year, and the employer contribution comes under this $5000 limit as well.
- The qualified rollover contribution is allowed, and there is no limit, but it will be adjusted based on inflation.
What is the timeline for Trump’s Accounts?
To not miss any important event of Trump’s Account, you could note down the following dates:
| Events | Dates |
| Trump’s Account Opens | 04 July 2026 |
| Contribution for families, relatives, and employers begins from | In 2026, when the account will open |
| Election | Mid-2026 |
| Withdrawal | 01 January of the year the child turns 18 |
What are the other rules and facts related to Trump’s Account?
If your child is eligible for the Trump Account, you should know the following general rules and facts of the Trump Account:
- The funds of the account will be invested in exchange-traded funds or mutual funds that track the S&P 500 or other American equities.
- The account is treated as an IRA and generally has the same rules, but with some changes.
- The funds are locked in until the child turns 18, and during this growth period, no distribution is made except for qualified ABLE rollover contributions, death of the beneficiary, and excess contributions.
- The account is not subject to 408 (i), just like the IRA; instead, it is subject to section 530A (i).
How to claim the Trump’s Account $1000 deposit?
The first contribution under the Trump Account will not be made until 04 July 2026; however, if your child qualifies, you must complete the IRS Form 4547. The form will require the parents/guardians and the child’s information.
The IRS and Treasury instruct families to complete the election via Form 4547 to open the Trump Account and receive the first deposit. The IRS will send the notice to the eligible families in May 2026 and provide the information on opening the Trump account.
The White House will release a separate website for the Trump Account for parents/guardians to register for the account and save money for their children.
The Trump Administration’s initiative to secure the future of the child through the Trump Account is a great step. It will impact the children from low-to middle-income households and allow the parents or guardians to save for their future.
Disclaimer: IRS guidance on Trump Accounts is for informational purposes only. Official rules and eligibility are determined by the IRS.