FAMILY TAX PLANNING · 4 MIN READ
What Is a Trump Account? How It Works and How to Sign Up
By Hevia & Hevia CPA Firm · Published
A Trump Account is a tax-advantaged individual retirement account for an eligible child, designed for long-term investing. Certain children also qualify for a one-time $1,000 federal government contribution deposited directly into their account.
The account belongs to the child. An authorized adult manages it during childhood, subject to special contribution, investment, and withdrawal rules.
Who qualifies for a Trump Account?
Generally, a child must have a valid Social Security number and must not turn 18 before the end of the calendar year in which the account is established.
Eligibility for an account is broader than eligibility for the $1,000 government contribution. To qualify for that contribution, the child must also be a U.S. citizen born between January 1, 2025, and December 31, 2028, and the applicable election requirements must be satisfied. IRS eligibility guidance
How does the account work?
During the account’s special childhood “growth period,” contributions can be made even if the child has no earned income. Investments are restricted to qualifying low-cost funds tracking broad U.S. stock indexes.
Ordinary contributions from family members and other contributors generally share a $5,000 annual limit for 2026 and 2027. Qualifying employer contributions count toward that limit. The federal $1,000 pilot contribution and certain other qualifying contributions do not.
The $5,000 limit applies collectively—not separately to each parent or grandparent. Investment returns are not guaranteed. IRS contribution guidance
How do I sign up for my child?
The process changed during 2026. Treasury began automatic enrollment on October 1, 2026, so first check whether your child already has an account.
1. Start through an official government website
Visit TrumpAccounts.gov or the IRS Trump Accounts page. Follow their links to the official app or account-management website.
Have the identifying information needed for yourself and your child available.
2. Claim and activate an existing account
Follow the instructions to verify your identity and your authority to manage the child’s account, then complete activation.
If Treasury automatically opened the account, you do not need to submit Form 4547 merely to open another one. If no account exists, follow the current instructions for requesting one.
3. Submit Form 4547, including with your tax return
You can submit Form 4547, Trump Account Election(s), with your current-year electronically filed federal income tax return. Ask your tax preparer to include the appropriate elections for your eligible child.
You can also submit the election through the official Trump Accounts app, account website, or IRS Individual Online Account without waiting to file your tax return.
If your child qualifies for the $1,000 government contribution, select the pilot-program contribution election. An automatically opened account does not replace this election.
If you already filed your return, do not amend it solely to attach Form 4547. Use a separate authorized submission method instead. Avoid duplicate elections if your request has already been submitted. IRS filing instructions · IRS enrollment and election FAQs
When can the money be withdrawn?
Ordinary withdrawals are generally prohibited during the growth period, subject to limited exceptions.
That period ends on December 31 of the year before the child turns 18. Beginning January 1 of the year the child turns 18, traditional IRA distribution rules generally apply. Access does not mean tax-free access: income tax and an early-distribution tax may apply. IRS Notice 2025-68
How can our firm help?
Hevia & Hevia CPA Firm can help families understand contribution rules, coordinate employer benefits, and evaluate the tax consequences within their broader financial circumstances.
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