Trump accounts: the $1,000 pilot and the rules
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A Trump account is a new savings account for children, created by the 2025 tax law. It is a type of traditional IRA opened for a child under 18. Families, employers and others can put money in, and the money is invested in low-cost US stock index funds until the child grows up.
The $1,000 pilot deposit
The Treasury puts $1,000 into the account of each child who:
- was born from January 1, 2025 through December 31, 2028,
- is a US citizen, and
- has a Social Security number.
A parent or guardian must elect the account. You do this on IRS Form 4547, which you can file with your tax return or on its own.
Contributions
- Yearly limit: $5,000 from family and others. The limit will be adjusted for inflation after 2027.
- Employer money: an employer can add up to $2,500 a year for an employee’s child. This counts toward the $5,000 limit and is not taxable income to the employee.
- Start date: contributions can start on July 4, 2026.
- Not counted: the $1,000 pilot deposit and some gifts from governments and charities to groups of children do not count toward the limit.
Contributions from parents are not tax-deductible. The benefit is that the growth is not taxed until the money comes out.
Investments
Until the year the child turns 18, the money must be in mutual funds or ETFs that track a broad index of mostly US stocks, such as the S&P 500, with low fees. You cannot pick single stocks.
Taking money out
No withdrawals are allowed before the year the child turns 18. After that, the account follows the usual traditional IRA rules. Withdrawals are taxed as income, and withdrawals before age 59½ can face a 10% penalty unless an exception applies, such as for college costs or a first home.
How much could it grow?
At an assumed 6% a year, the $1,000 pilot deposit alone grows to about $2,850 after 18 years. With $1,000 added every year as well, the balance after 18 years is about $35,600. Real returns go up and down, so try several rates in the calculator.
Common questions
Who gets the $1,000 Trump account deposit?
US citizen children with a Social Security number who were born from January 1, 2025 through December 31, 2028, if a parent or guardian elects the account.
Can children born before 2025 have a Trump account?
Yes. Any child under 18 with a Social Security number can have an account and get contributions. Only the $1,000 pilot deposit is limited to children born 2025 through 2028.
How much can be put into a Trump account each year?
Up to $5,000 a year, including up to $2,500 from an employer. The limit rises with inflation after 2027.
When can the money be withdrawn?
Not before the year the child turns 18. After that, traditional IRA rules apply.
Updated: November 1, 2026. Based on 26 U.S. Code § 530A and IRS guidance on the 2025 tax law.