How to Open a Trump Account for Your Child (2026): Claim the $1,000, Then Decide If It Beats a 529 or Custodial Account
To open a Trump Account, file IRS Form 4547 (with your tax return or on its own) or register online at trumpaccounts.gov. The child needs a Social Security number and must be under 18. Children who are US citizens born January 1, 2025 through December 31, 2028 get a $1,000 Treasury seed deposit. The account first opens with the Treasury's designated agent. The official app was built by BNY Mellon and Robinhood. Family can add up to $5,000 a year, of which employers can contribute up to $2,500. Investments are limited to low-cost US stock index funds (fees 0.10% or less). No withdrawals before 18. At 18 it follows traditional IRA rules.
Trump Accounts are a new kind of US children's savings account created by the 2025 tax law. They became available on July 4, 2026. The headline feature is a $1,000 deposit from the US Treasury for eligible babies. The most important thing to understand is that you have to claim it. Nothing happens automatically.
Here's how to open one, the rules, and how it fits alongside a 529 or custodial account.
Trump Account rules at a glance
| Rule | Detail |
|---|---|
| Who's eligible | Children under 18 with a Social Security number |
| $1,000 Treasury seed | US-citizen children born Jan. 1, 2025 - Dec. 31, 2028 |
| How to open | IRS Form 4547 or trumpaccounts.gov |
| Election deadline | Before January 1 of the year the child turns 18 |
| Annual contribution limit | $5,000, indexed after 2027 |
| Employer contribution | Up to $2,500/year, counts within the $5,000 |
| Allowed investments | US equity index funds or ETFs, fees 0.10% or less, no leverage |
| Withdrawals | Not before 18. After that, traditional IRA rules apply. |
| Number of accounts | One funded Trump Account per child |
| Initial trustee | The Treasury's designated agent. The official app was built by BNY Mellon and Robinhood. |
Step 1: Get your child's Social Security number
Every Trump Account requires one. Most parents apply at birth through the hospital's birth-registration paperwork.
Step 2: Make the election
Choose one route:
- Online: register at trumpaccounts.gov and use the official app, built by BNY Mellon and Robinhood as Treasury partners.
- By form: file IRS Form 4547, either with your tax return or on its own.
The election creates the account with the Treasury's designated financial agent. For eligible children born 2025-2028, it triggers the $1,000 deposit.
Deadline: the election must be made before January 1 of the year your child turns 18. For babies, there's no reason to wait.
Step 3: Decide whether to add money
Anyone can contribute, including parents, grandparents and friends, up to $5,000 a year combined. Some employers now contribute up to $2,500 a year as a benefit, which counts within the $5,000. Check with HR. Separately, Michael and Susan Dell pledged $250 per account for about 25 million children age 10 and under, starting with lower- and middle-income ZIP codes.
Step 4: Choose the investment
The menu is intentionally narrow: US stock index funds or ETFs, such as an S&P 500 fund, with total fees of 0.10% or less, at least 90% in US companies, and no leverage. For an 18-year horizon, a broad, cheap US index fund is a reasonable default. It's also the only real option.
Step 5: Moving it later
Accounts start with the Treasury's agent. Families are expected to be able to move the full balance to another financial institution through a trustee-to-trustee transfer. Details and timing are still being rolled out, so check with the provider you want to move to.
Trump Account vs 529 vs custodial (UTMA/UGMA)
| Trump Account | 529 plan | Custodial (UTMA/UGMA) | |
|---|---|---|---|
| Free money | $1,000 seed (2025-28 births), possible Dell $250, employer up to $2,500 | State tax deduction in many states | None |
| Tax on growth | Tax-deferred. Taxed as ordinary income on withdrawal. | Tax-free for qualified education | Taxable yearly, with kiddie tax rules |
| Withdrawals | Not before 18. Then IRA rules, with a 10% penalty before 59½ unless an exception applies. | Education anytime. Penalty on non-qualified earnings. | Anytime, for the child's benefit |
| Investments | US equity index funds only | Plan menu | Anything |
| Financial aid | Likely treated as a student asset | Parent asset (more favourable) | Student asset |
| Child's control | At 18 | Owner (parent) keeps control | Age of majority (18-21, varies by state) |
What this means in practice:
- Claim the $1,000. It's free money, and electing costs nothing.
- Next dollar for education? A 529 is usually better: tax-free for school, more favourable for aid, and the parent keeps control.
- Next dollar for long-term wealth? A Trump Account works like an early IRA. Once your teen has earned income, a custodial Roth IRA is even better, because qualified withdrawals are tax-free rather than taxed as income. See how to open a Roth IRA.
- Want flexibility? A custodial account has no withdrawal restrictions but gives no tax break.
The trade-offs people miss
- Taxed on the way out. Earnings and pre-tax money are taxed as ordinary income. Unlike a Roth, this isn't a tax-free account.
- Financial aid. Savingforcollege.com notes Trump Accounts will likely be assessed as student assets, at 20%, compared with up to 5.64% for parent assets like a 529.
- The child controls it at 18. Consider that before you put a lot in.
- Only US index funds. There are no bonds, no international funds and no way to reduce risk as the child gets older.
Canadians
Trump Accounts are for US citizens and residents with SSNs. The Canadian equivalent for children's savings is the RESP, which comes with a 20% government grant. See how to open an RESP.
Bottom line
If your child was born between 2025 and 2028, elect a Trump Account this year. The $1,000 is free, and it'll grow for 18 years at index-fund cost. Then put your next dollars where they work hardest: a 529 for education, a custodial Roth once your teen has a job.
Frequently asked questions
How do I get the $1,000 Trump Account deposit?
Your child must be a US citizen with a Social Security number, born between January 1, 2025 and December 31, 2028. A parent or guardian elects the account by filing IRS Form 4547, with a tax return or separately, or by registering at trumpaccounts.gov. The Treasury deposits $1,000 after the election is processed.
How much can I contribute to a Trump Account?
Up to $5,000 a year from family and others combined, indexed for inflation after 2027. An employer can contribute up to $2,500 a year per employee's child, within that $5,000. The $1,000 government seed and qualified charitable contributions don't count toward the annual limit.
What can a Trump Account invest in?
Only mutual funds or ETFs that track the S&P 500 or another US equity index, with at least 90% in US companies, no leverage, and total annual fees and expenses of 0.10% or less. You can't pick individual stocks, bonds or international funds.
Can I withdraw money from a Trump Account before 18?
Generally no. Distributions aren't allowed before the year the child turns 18. From then on, the account follows traditional IRA rules: earnings and pre-tax money are taxed as ordinary income when withdrawn, and withdrawals before 59 and a half may face a 10% penalty unless an exception applies.
Is a Trump Account better than a 529 plan?
For education, usually not. A 529 offers tax-free withdrawals for qualified education costs and is generally treated more favourably for financial aid. A Trump Account is tax-deferred with ordinary-income tax on withdrawal. The best move for most families is to claim the free $1,000 in a Trump Account, then put additional education savings into a 529.
What is the Dell pledge for Trump Accounts?
Michael and Susan Dell pledged $6.25 billion to add $250 to Trump Accounts for about 25 million children age 10 and under, starting with children in ZIP codes where the median household income is $150,000 or less. Eligibility details are set by the pledge program, not the IRS.
Primary sources
Data & disclaimer: This article is for educational purposes only and is not financial or investment advice. Figures reflect data available as of Sep 18, 2026, and conditions change — always confirm current pricing, rates and rules with the provider before you act. Written by Elizabeta Dimoska. See our editorial standards and disclosure.
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