On July 4th, the United States celebrated its 250th anniversary with nationwide festivities.
Another, lesser-known milestone took place that day. “Trump Accounts” became active and eligible children began receiving a $1,000 federal contribution.
If you have children or grandchildren born after January 1, 2025, here’s what you need to know to receive the $1,000 contribution.1
What Is a Trump Account? 1
Trump Accounts are a new type of tax-advantaged account, similar to a custodial IRA, created to encourage long-term savings and investment for children under age 18. The accounts are designed to encourage long-term investing to help children build assets from an early age.
Who Is Eligible?
To open a Trump Account, a child must: 2
To receive the one-time $1,000 federal contribution, a child must additionally: 2
Children born outside of the 2025–2028 window may still qualify to open a Trump Account, but they are not eligible for the $1,000 federal seed contribution.
How Do You Set Up a Trump Account?2
Only one account may be opened per eligible child, and the $1,000 election can only be made by the individual who is eligible to claim the child as a dependent for federal income tax purposes. Accounts can be established in several ways:
1. Enroll directly by either:
2. File IRS Form 4547 with your federal income tax return.
3. Submit Form 4547 electronically through the IRS.gov website.
4. Print and mail a paper Form 4547 to the IRS.3
Account owners will be able to access their accounts and make investment elections through the Trump Accounts app or through the TrumpAccount.com website. In the future, families are expected to have the option to transfer assets to their preferred brokerage firm through a trustee-to-trustee transfer.4
How Can You Invest a Trump Account? 5
Initially, the only investment option for all Trump Accounts is State Street SPDR Portfolio S&P 500 (SPYM). This is an ETF that tracks the S&P 500 index. In the coming months, they expect to add functionality that will allow owners to choose how to allocate funds across additional investment options.
Contribution Limits 2
Current rules allow:
What Happens When the Child Turns 18? 4
When the child turns 18, the account will be converted into a traditional IRA and they assume control of the account and can make their own investment and withdrawal decisions.
Withdrawals may be subject to ordinary income taxes and early withdrawal penalties (with certain exceptions).
Our Perspective
Trump Accounts give eligible families an easy, low-cost way to start investing in their child’s future, with a $1,000 initial federal contribution to help get things started. We are available if you would like to discuss Trump accounts or have any questions on how to apply.
1. Charles Schwab. “What to Know About Trump Accounts.” November 17, 2025.
2. U.S. Department of the Treasury, Trump Accounts: Jumpstarting the American Dream.
3. IRS. Instructions for Form 4547, Trump Account Election(s). December 2025.
4. State Street Global Advisors. “Trump Accounts”.
5. Fidelity Viewpoints. “Trump Accounts: A New Way to Save for Kids.” May 14, 2026.