Trump Accounts
The federal "Trump Account" is a new, tax-advantaged investment account designed to help families build long-term wealth for children under 18. Structured like a custodial Traditional IRA, these accounts allow parents and guardians to invest early for their children's future with help from a government kickstart.
The one-time $1,000 Treasury pilot contribution is not automatic. It applies to qualifying children and requires that the election actually be made.
Key details
- Who can have one
- An account may be established for an eligible child who has not reached age 18 before the end of the election year and has a valid Social Security number.
- The $1,000 pilot contribution
- Qualifying U.S.-citizen children born January 1, 2025 through December 31, 2028 may qualify for the one-time $1,000 Treasury pilot contribution when the required election is made.
- Annual contribution limit
- Parents, grandparents, or legal guardians can contribute up to $5,000 per year total.
- Employer matching
- Employers can contribute up to $2,500 of that annual $5,000 limit as an added employee benefit.
- Deductibility
- Personal contributions made by parents, grandparents, or other individuals are not deductible on their federal income tax return. Qualifying employer contributions are subject to different rules.
- Investment and distribution rules
- Special investment and distribution rules apply during the child's growth period.
- Making the election
- Form 4547 is used for the election.
What to save or bring to your appointment
- The child's Social Security card and date of birth
- Records of contributions made during the year
- Any employer contribution documentation
- Account statements from the Trump Accounts platform
Download the document checklist (PDF) →
Official IRS information
This page is general educational information and is not tax advice for your particular situation. These rules carry additional eligibility and reporting requirements. See the official IRS information linked above, or contact Borinken Tax to talk through your circumstances.
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