FAQ'S on Trump Account

A Trump Account (technically a 530A account) is a new type of tax-advantaged investment account designed to help American children build long-term wealth. Created under the "One Big Beautiful Bill Act" (OBBBA) in 2025, these accounts function similarly to a custodial IRA but are tailored for minors.

1. What is a Trump Account?

It is a custodial investment account where the assets are owned by the child but managed by a parent or guardian until the child turns 18.

• Government "Seed" Money: A hallmark of the program is a one-time $1,000 contribution from the U.S. Treasury for eligible newborns.

• Tax Advantages: The account grows tax-deferred. While contributions are generally made with after-tax dollars (like a Roth), the initial government seed and employer contributions are typically pre-tax.

• Investment Strategy: Funds are restricted to low-cost, U.S.-based index funds (like those tracking the S&P 500) to ensure steady, diversified growth with minimal fees.

• Withdrawal Rules: Money is "locked" until the child turns 18. After 18, it converts to a traditional IRA. Early withdrawals for things like a first-time home purchase, education, or starting a business may be permitted without the typical 10% penalty.

2. Who is Eligible?

Eligibility is primarily based on age and citizenship:

• General Eligibility: Any U.S. citizen under the age of 18 with a valid Social Security number can have a Trump Account opened for them.

• The $1,000 Federal Grant: To receive the automatic $1,000 government deposit, the child must be born between January 1, 2025, and December 31, 2028.

• The $250 Charitable Gift: Children age 10 and under (born before 2025) may be eligible for a $250 deposit from the Michael & Susan Dell Foundation if they live in a ZIP code with a median income below $150,000.

3. How to Enroll

The enrollment process is currently integrated into the 2026 tax filing season:

• IRS Form 4547: This is the primary document used to "elect" or open a Trump Account. You can file this form along with your 2025 tax return.

• Official Portal: A dedicated website, trumpaccounts.gov, is scheduled to launch by Summer 2026. This will allow parents to open accounts, track growth, and manage contributions online.

• Activation: After filing Form 4547, the Treasury will send instructions (expected around May 2026) to officially activate the account and authenticate the child's details.