US President Donald Trump speaks during an event marking the launch of the “Trump Accounts” in the Oval Office at the White House in Washington, DC, US, July 6, 2026.
Evan Vucci | Reuters
Trump Accounts officially launched on July 4, introducing a new tax-deferred investment option for children. Unlike 529 college savings plans and other accounts designed for education or short-term expenses, these accounts are intended for retirement and are intended to help build long-term wealth.
“Trump’s accounts level the playing field by allowing every parent to invest in their children’s future, not just wealthy families with trust funds,” a Treasury spokeswoman told CNBC via email.
This guide breaks down the key features of Trump Accounts, including eligibility requirements, free cash flow and strategies families can use to maximize growth.
More details to come. Please check back for updates.
Read more about Trump Accounts
How to read this guide
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Trump Accounts, also known as 530A accounts, are a type of individual retirement account for children established under President Donald Trump’s “great big bill”.
The accounts work like an IRA, with some exceptions. Trump accounts can receive contributions from many sources, such as family or employers, and the funds grow tax-deferred.
Who qualifies for a Trump Account?
Trump Accounts are available to all children under the age of 18, as long as the child is a US citizen and has a valid Social Security number. An authorized adult – including a parent, legal guardian, grandparent or sibling – can open an account on behalf of an eligible child.
A federal, state, or federal child welfare agency that is the legal guardian may also open a Trump Account for an eligible foster child, in accordance with Treasury guidance.
Who gets the $1,000 union deposit?
Children born from 2025 to 2028 can receive a one-time deposit of $1,000 from the US Treasury Department as part of a pilot program designed to jump-start long-term savings.
That seed money is automatically deposited once the account is opened and verified. Families can track account activity through the Trump Accounts app, which was developed in partnership with Robinhood.
The Trump Accounts app.
Source: US Treasury
What is the Dell $250 offer?
Tech CEO Michael Dell and his wife, Susan, committed $6.25 billion to provide an additional $250 for children born between 2016 and 2024 who live in ZIP codes where the median income is $150,000 or less.
That money is intended for low-income children, but children over the age of 10 can benefit, too, if funds remain available after the initial enrollment, according to a fact sheet from the Dell Foundation.
How do you open a Trump Account?
Parents or guardians can open accounts by filing IRS Form 4547 with their tax return or at TrumpAccounts.gov. The deadline for registration is the year before the child turns 18.
Following a massive advertising campaign before the official launch, 6.5 million children have been registered, according to July 10 figures from the Treasury.
How to avoid Trump account scams?
Initial work emails will only appear at no-reply@TrumpAccounts.Treasury.gov. Future communications will be made through the Trump Accounts app, or to email addresses ending in @trumpaccount.com.
Always access your child’s Trump Account from the official app or by typing TrumpAccounts.gov directly into your browser, the Treasury Department’s guidance says.
How much can you put into the Trump Account?
Parents, guardians, grandparents and others can jointly contribute up to $5,000 per child per year in after-tax dollars up to a year before the beneficiary turns 18. The annual contribution limit includes indications of income increases after 2027.
Employers can also contribute up to $2,500 per employee per year, which is part of the $5,000 limit and will not count as taxable income, according to the IRS. This figure also adjusts for inflation after 2027. A growing list of companies has already promised to freeze the accounts of employees’ children.
Additionally, qualified charitable organizations and state and local governments may make contributions up to a maximum of $5,000.
As of July 10, families have collectively contributed nearly $125 million since the launch, according to a Treasury Department spokeswoman.
How is the Trump account taxed?
Donations made to Trump’s account by parents, guardians, grandparents or others will not trigger a gift tax filing requirement, according to the IRS and the Treasury Department. These contributions will count towards the annual gift disbursement, which is $19,000 per recipient in 2026.
Funds in the Trump account then grow tax-deferred until withdrawal. Because Trump’s accounts may include a mix of tax and after-tax contributions, distributions may still be partially taxable. Withdrawals are taxed as ordinary income, the Treasury said.
Here is the breakdown:
- Direct parent contributions — after tax
- Trial plan $1,000 – early tax
- Employer contributions — before tax
- Other eligible contributions — pre-tax
- Future contribution growth — before tax
What are the withdrawal rules?
In general, it is not possible to withdraw funds from the Trump account before the age of 18. But there are limited exceptions, including certain rollovers, distributions at death and excess contributions, according to the IRS.
Once the child turns 18, the general rules for traditional IRAs apply. Withdrawals before age 59½ are generally subject to income tax and a 10% penalty. There are exceptions to certain penalties, such as the distribution of higher education expenses or the purchase of a first home.
What are the investment options?
How does Trump’s account compare to 529 plans and savings accounts?
Families looking to build long-term savings for children may consider a variety of options, including a 529 college savings plan, a custodial account for children under the Uniform Gifts to Minors Act or Uniform Transfers for Minors Act, also known as UGMA and UTMA, or, if the child has earned income, a Roth retirement account.
When it comes to paying for college, experts often consider 529 plans to be the best way to save because of the tax benefits and higher contribution limits, but which investment vehicle makes the most sense depends on the family’s specific goals and time horizon.
“Trump accounts and 529 plans are not competitors, but they are complementary,” a Treasury spokesperson told CNBC. “While 529s are targeted at families with education expenses, Trump Accounts mark a historic leap in flexibility — allowing all Americans to save, invest and build wealth for the long term.”
– Kate Dore contributed to this report.
