What a Trump Account is
A Trump Account is a savings account for a child, created by the One Big Beautiful Bill Act, signed July 4, 2025, as section 530A of the tax code. It began as the Invest America Act, which is why you will still hear that name. Money in the account is invested in low cost U.S. stock index funds and grows tax deferred until the child is an adult. Contributions were allowed starting July 4, 2026.
Until December 31 of the year the child turns 17, the account is in its growth period: money can go in, nothing can come out. After that it works like a traditional IRA in the child's name.
Who already has one
Families could open accounts from early 2026. Then, on or about October 1, 2026, the Treasury created an account automatically for every eligible child under 18 with a Social Security number who did not already have one, which brought the total to about 70 million accounts. The first trustee is Robinhood Securities, with BNY acting as the Treasury's financial agent.
Being created is not the same as being claimed. In mid October, Bloomberg reported that fewer than 1% of the automatic accounts had been claimed by a parent. An unclaimed account can still receive the $1,000 pilot deposit if it was elected, and gifts from governments and charities, but not money from family or an employer.
How to claim it
- Get the official app. Download the Trump Accounts app, or start at trumpaccounts.gov. Opening and keeping the account is free.
- Verify yourself. A parent or legal guardian confirms their identity and their relationship to the child, and accepts the terms.
- Elect the $1,000, if your child qualifies. File Form 4547 in the app, online, in your IRS Individual Online Account, or with your tax return.
- Share the gift link. Next to each child's name the app shows a contribution link and QR code that anyone can use to give.
Watch for look alike sites. The official site ends in .gov. InvestAmerica.net is an independent guide and never asks for your Social Security number or bank details.
The $1,000 deposit
The Treasury's pilot program puts $1,000 into the account of a child who:
- was born between January 1, 2025 and December 31, 2028,
- is a U.S. citizen with a Social Security number issued before the election, and
- has an adult who elects it on Form 4547 and expects the child to be their qualifying child for that year.
It is not automatic. The Treasury pays it after the election is processed and the account is open, and it does not count toward the $5,000 yearly limit. Each child can receive it only once.
The Dell gift and other donors
In December 2025 Michael and Susan Dell pledged $6.25 billion: $250 each for up to 25 million children. The gift goes to children born 2016 through 2024 who live in ZIP codes with a median income of $150,000 or less, and funding began in October 2026. Gifts like this, from charities and governments, do not count toward the yearly limit.
Others have announced gifts too, including Ray and Barbara Dalio ($250 each for about 300,000 Connecticut children) and employers such as Goldman Sachs, Delta, Visa, Edward Jones and Dell Technologies, which have announced matches of the $1,000 deposit for their employees' children. On October 19, 2026 Elon Musk posted that next year he will give one SpaceX share to every child in America; how and when that would reach accounts has not been announced. Treat any pledge as a promise until the money shows up in the app.
Who can put money in
| Source | How much | Counts toward the $5,000 limit? |
|---|---|---|
| Treasury pilot | $1,000 once | No |
| Charities and governments | Any amount, to a whole group of children | No |
| Parents, grandparents, anyone | Together up to $5,000 a year per child | Yes |
| An employer | Up to $2,500 a year per employee, tax free | Yes |
The $5,000 limit is per child per year, from all family, friends and employers combined, and rises with inflation after 2027. The child does not need earned income. Family contributions are not tax deductible. The IRS has also said that a cash gift can count toward the donor's annual gift tax exclusion.
Employers need a separate written plan to keep their contributions tax free. Our Employer Plan Kit covers what that plan needs.
How the money is invested
During the growth period the account can only hold mutual funds or exchange traded funds that track an index of mostly U.S. companies, use no leverage, and charge no more than 0.1% a year. That keeps fees low, and it means the balance moves with the U.S. stock market, down as well as up. Later, the whole account can move to another trustee that meets the same rules.
Taking money out at 18
No money can come out before January 1 of the year the child turns 18, apart from a few exceptions such as a rollover or the death of the child. From then on the account follows the rules for a traditional IRA. Withdrawals before age 59½ generally owe a 10% additional tax on the taxable part, unless an IRA exception applies, such as qualified higher education costs or up to $10,000 toward a first home. Money can also stay invested for decades, or be converted to a Roth IRA under the usual rules.
Taxes
- Family money goes in after tax, so it is the child's basis and comes back out without tax.
- The $1,000 pilot, charity gifts and employer money were never taxed, so they are taxed as ordinary income when withdrawn.
- Growth is tax deferred and taxed as ordinary income when withdrawn.
Compared with a 529 and a Roth IRA
| Trump Account | 529 plan | Custodial Roth IRA | |
|---|---|---|---|
| Free money in | $1,000 pilot for 2025 to 2028 births, donor gifts | Some states match | None |
| Who can contribute | Anyone, $5,000 a year in total | Anyone, high lifetime limits | Only up to the child's earned income |
| Investments | U.S. stock index funds, fee 0.1% or less | The plan's menu | Almost anything |
| Tax on growth | Taxed when withdrawn | Tax free for education | Tax free in retirement |
| When you can use it | From the year the child turns 18, under IRA rules | Any time, for education | Contributions any time; growth later |
Many families will use more than one. Claiming the Trump Account costs nothing, so the $1,000 and any donor gifts are worth collecting either way.
Questions people ask
My child was born before 2025. Do they get anything?
They still have an account if they have a Social Security number and are under 18, and family and employers can contribute. They do not get the $1,000 pilot. Children born 2016 through 2024 in qualifying ZIP codes may receive the $250 Dell gift.
Do I have to claim the account?
Only a claimed account can receive money from family and employers. Claiming is free and is done by a parent or guardian in the official app.
Does my child need to be a citizen?
The account needs a valid Social Security number. The $1,000 pilot deposit is only for U.S. citizens born 2025 to 2028.
Can grandparents give?
Yes. Anyone can give through the child's contribution link, as long as total family and employer money stays within $5,000 for that year.
Can I choose a different brokerage?
The account starts with the Treasury's trustee. The rules allow moving the whole account to another trustee that meets the same investment and fee rules.
Is InvestAmerica part of the program?
No. We are an independent guide, not the government, the IRS, trumpaccounts.gov, Robinhood, or the Invest America campaign. We never ask for Social Security numbers or account logins.
Sources
- IRS: Trump Accounts and frequently asked questions
- IRS: Instructions for Form 4547
- Federal Register: Trump Accounts, September 30, 2026
- Federal Register: Trump Accounts contribution pilot program
- Federal Register: Employer contributions to Trump Accounts (proposed)
- trumpaccounts.gov, the official site
This guide is general information, not tax or legal advice. Rules can change; check the official sources above before you act.