Trump Accounts for Kids: The $1,000 Deposit, Limits and Rules

Trump Accounts are a new type of investment account for American children, created by the 2025 tax law and launched on July 4, 2026. Kids born from 2025 through 2028 can get a $1,000 deposit from the federal government, and families and employers can add more each year. Here's how they work.

Who can have a Trump Account?

Any child who is a U.S. citizen under age 18 with a valid Social Security number can have an account. A parent or legal guardian opens it on the child's behalf.

The $1,000 pilot deposit

Children born from January 1, 2025 through December 31, 2028 qualify for a one-time $1,000 contribution from the Treasury. It doesn't count toward the annual contribution limit. Parents have to elect it, so if your child is in that age group, make sure you sign up.

Contribution limits

Contributions from families are made with after-tax dollars and are not tax-deductible. Contributions can be made until the year the child turns 18.

How the money is invested

Trump Accounts are designed as long-term, IRA-style accounts. Until the child turns 18, the money must be invested in low-cost funds that track the U.S. stock market, the kind of broad index funds long-term investors favor. Investment gains grow tax-deferred.

Withdrawal rules

• Before 18: withdrawals generally aren't allowed, except in narrow cases.
• At 18: the child takes control. The account then follows traditional IRA rules. It can stay invested, be rolled into a traditional IRA, or be converted to a Roth IRA (with tax due on the conversion).
• Taking money out after 18: withdrawals of earnings are taxable. Withdrawals before 59½ for non-qualified purposes can face a 10% penalty, while IRA exceptions such as higher education costs or a first home purchase (up to $10,000) can avoid the penalty.

What could the $1,000 grow into?

At a hypothetical 7% average annual return, a single $1,000 deposit left alone for 18 years would grow to roughly $3,380. Add $50 a month for 18 years and the total could reach roughly $25,000. Hypothetical illustration; returns are not guaranteed and can be negative.

How to sign up

1. File IRS Form 4547, either on its own or with your tax return, or through the official Trump Account app or IRS webpage.
2. Elect the $1,000 pilot deposit if your child was born 2025–2028.
3. Set up contributions and ask your employer whether it offers contributions.

Opening an account is free. Be cautious of third-party sites or messages asking for fees or personal information; use official IRS channels.

Trump Account vs 529 plan vs custodial account

Many families will use more than one. If college is the main goal, a 529 plan usually offers better tax benefits for that purpose.

Sources: One Big Beautiful Bill Act (2025); IRS guidance on Trump Accounts (Section 530A); reporting on the July 2026 launch.