What is a Trump Account? 

Created under the One Big Beautiful Bill Act (OBBBA), Trump Accounts are a type of traditional individual retirement account (IRA) that is established for the exclusive benefit of an eligible individual and that is designated at its establishment as a Trump account.  The goal of these accounts is to help families build long term savings for children. 

Who Qualifies as an Eligible Individual?

Any child who hasn’t reached the age of 18 during the calendar year and who has a Social Security number can be the owner of a Trump account and is referred to as the account beneficiary. 

How much can be contributed to the Trump Account Each Year?

During the growth period (the period that ends before January 1 of the calendar year in which the account beneficiary attains age 18), there are five types of contributions that can be made to a Trump Account:

1. Pilot program contributions

2. Qualified general contributions

3. Qualified rollover contributions

4. Section 128 Employer contributions

5. Contributions from other sources (such as the account beneficiary, parents, or any other person)

Section 128 employer contributions & contributions from other sources are subject to an aggregate annual limit of $5,000.

What are Pilot Program contributions? 

Upon an election under the pilot program, $1,000 is paid by the Secretary to the Trump account of an eligible child.  An eligible child is a child born after December 31, 2024, and before January 1, 2029, who is a US citizen with a social security number, and for whom no prior pilot program election has been made.  This contribution does not count against the $5,000 annual private contribution limit. 

When can distributions be made from a Trump Account?

During the growth period, no withdrawals are allowed from a Trump Account except for qualified rollover contributions, distributions of excess contributions and distributions upon death of the account beneficiary.  After the account beneficiary attains age 18, distributions from a Trump Account are generally subject to the same rules that apply to traditional IRA’s, meaning distributions could be subject to early withdrawal penalties on distributions made before the beneficiary attains the age 59 ½. The early withdrawal penalty can be avoided if the funds are used for certain qualified expenses, such as for higher education expenses and a first-time home purchase.

Michael and Susan Dell’s $6.25 billion Donation

On Tuesday, December 2, 2025, Michael and Susan Dell announced they would be donating $6.25 billion to expand the reach of the Trump Accounts to children 10 and younger who do not qualify for the initial $1,000 contribution into their Trump Account because they were born prior to January 1, 2025. Each qualifying child will receive $250 to start their Trump Account. To qualify, the child must live in a ZIP code where the median household income is below $150,000.

When Do Trump Accounts Launch?

Trump Accounts will begin accepting contributions July 4, 2026.  

Final Thoughts

Trump Accounts are one way to help children get a head start on saving for the future.   There are also other existing types of savings/investment accounts such as college savings plans and custodial accounts that will also help prepare for a child’s future.  Families should consult their investment advisors to determine which accounts best fulfill their goals. 

The IRS has issued initial guidance on Trump Accounts that is consistent with the information above.  It is anticipated that further guidance will be issued prior to July 4, 2026.