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- The Trump account was officially launched on July 4th.
- Children under 18 are eligible for an account, but only children born between 2025 and 2028 are eligible to receive the $1,000 government benefit.
A year after signing the “One Big Beautiful Bill Act,” the Trump account is now up and running.
The children’s investment account, which is managed by parents until their child turns 18, officially began operation on July 4. Some children’s accounts will receive $1,000 in “seed” money from the government, depending on their year of birth.
“The Trump Account is about giving every American child a right to America’s future and a share of the profits,” President Donald Trump said at the July 6 launch event, adding, “What better way to start our nation’s 250th anniversary?”
Here’s what you need to know about your account.
How does the Trump account work?
A Trump account is a savings account invested in low-cost index funds, and withdrawals are typically not allowed until the child turns 18. Contributions from non-governmental organizations are limited to $5,000 per child per year.
Anyone under the age of 18 is eligible to get an account, but only children born between 2025 and 2028 can receive a $1,000 seed payment from the government. The child owns it, but the parent controls it until the child turns 18, at which point it converts to a traditional IRA.
How do I open a Trump account?
Parents can file IRS Form 4547 online at trumpaccounts.gov. This form asks for your date of birth, social security number, and contact information. There is also a form in the mobile app for the Trump account.
When will $1,000 be deposited into your Trump account?
President Trump said seed money was deposited into the accounts of more than 500,000 American children on July 4th.
Who actually owns the Trump account?
Trump accounts are owned by children but managed by adults until the child turns 18, according to Fidelity Investments.
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Who is eligible for a Trump account?
All U.S. citizens born between 2025 and 2028 are eligible to receive a $1,000 stipend and get a Trump Account. They must have a social security number.
What about Trump accounts for children under 18?
U.S. children under 18 born before 2025 will also qualify for a Trump Account with the same features, but without the $1,000 seed money from the federal government. These accounts may still be eligible to receive donations to other governments or charities. For example, Michael and Susan Dell pledged $250 to the first 25 million applicants for children up to age 10, for a total of $6.25 billion, with several other limitations. (Please check your child’s eligibility here.)
Only one Trump Account may be opened per child.
When can I withdraw my money?
IRS rules state that Trump can begin receiving distributions from his account on January 1 of the year he turns 18. Fidelity says withdrawals before then are severely restricted.
However, that guidance could change to only allow withdrawals after the child turns 18.th said Rita Assaf, Fidelity’s vice president of retirement promotions. Reason: Children under the age of 18 do not have the same legal rights as adults.
From that point of view, a Trump account could function similarly to an individual retirement account. IRA rules generally include penalties for withdrawals made before age 59 1/2, with exceptions for qualifying first-time home purchases, higher education expenses, and medical expenses. After age 59 1/2, you can withdraw IRA funds without penalty.
Who can contribute to a Trump account?
Donations can come from almost anyone: individuals, employers, governments, philanthropists, and charities.
How much can I donate to my Trump account?
The contribution limit is $5,000 per year. However, one-time “seed” contributions from governments do not count toward the annual limit, nor do contributions from governments or charities.
Employers can contribute up to $2,500 per employee per year, and the money can be split among multiple children. Employees can transfer their pre-tax paychecks to Trump accounts. These contributions count toward the $5,000 annual limit.
The annual limit is indexed to inflation and increases over time.
Contributor: Medora Lee, USA TODAY
Kinsey Crowley is a Trump Connect reporter for the USA TODAY Network. Please contact KCrowley@usatodayco.com. follow her X (Twitter), thread, blue sky and TikTok.
