The Trump Account for Parents: What It Is, How to Open One, and What to Do Next
Launches July 4, 2026
IRS Form 4547
$1,000 Federal Seed Deposit
The Trump Account is a new tax-advantaged investment account for U.S. children under 18, launching July 4, 2026. Children born between January 1, 2025 and December 31, 2028 are eligible for a one-time $1,000 federal seed deposit. Parents elect the account by filing IRS Form 4547. Contributions of up to $5,000 per year are allowed once the account is open, invested in low-cost index funds.
What Just Happened
For the first time, the U.S. government is going to deposit money into an investment account for your child. One thousand dollars. Federally seeded. For every American child born between January 1, 2025 and December 31, 2028. The account is called a Trump Account. It launches July 4, 2026.
It is the fourth account option families have for saving and investing on behalf of their child — alongside the 529 plan, the UGMA/UTMA custodial account, and the custodial Roth IRA. Most parents do not know what a UGMA is. Most parents do not know what a 529 is. Now there is a fourth option.
The window to make a calm decision is short. This page is for the parent who wants to understand what they actually have to do, in what order, and how to use the account once it exists.
Who Qualifies for the $1,000 Federal Deposit
The federal seed deposit is a pilot program — not universal. To qualify, the child must:
- Be a U.S. citizen with a valid Social Security number
- Be born between January 1, 2025 and December 31, 2028
- Have a parent or legal guardian who elects the account by filing IRS Form 4547
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If your child does not meet these three criteria, you can still open a Trump Account — but without the $1,000 seed contribution. The same $5,000 annual contribution rules apply.
How to Open a Trump Account: Step by Step
Trump Account vs. 529 vs. UGMA vs. Custodial Roth IRA
The four account types do different things. Most families will end up using two of them. Here is what each one is for.
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The honest summary: Most families will use a 529 for college savings and a Trump Account for general long-term growth. A UGMA makes sense if you want to teach your child about investing with money they can see. A custodial Roth IRA makes sense once your child has actual earned income. The Trump Account is not a replacement for a 529. It is an addition.
Once the Account Is Open: What to Do With It
This is the part nobody else is writing. Opening the account is the easy part. The hard part is what comes next — and what comes next is the conversation with your child. The account is in their name. The $1,000 is theirs. The growth over the next eighteen years is theirs.
What the Junior Wall Street Workbook Series Adds
The Junior Wall Street workbook series is built around the moments above.
→ Workbook 1
Introduces the concept of an account.
→ Workbook 3
Covers compound interest with the Trump Account balance as the example.
→ Workbook 5
Walks parent and child through reading the actual statement.
Families who open a Trump Account this year and use the workbook series will arrive at age fourteen with a child who understands what they own, why it has grown, and what to do next.
Frequently Asked Questions
What is a Trump Account?
A new tax-advantaged investment account for U.S. children under eighteen, launching July 4, 2026. The account is owned by the child but administered by a parent or legal guardian. Children born between 2025 and 2028 are eligible for a one-time $1,000 federal seed deposit. Annual contributions of up to $5,000 are allowed once the account is open.
How do I open a Trump Account for my child?
Parents elect the account by filing IRS Form 4547, either with their 2025 tax return or through the online portal at trumpaccounts.gov. The child must be a U.S. citizen with a valid Social Security number. Initial accounts are administered by the U.S. Treasury; after the first funding, families can transfer the account to a qualified custodian.
Should I open a Trump Account or a 529 plan?
Most families will end up with both. A 529 plan is designed for college savings — tax-free growth, tax-free withdrawals for qualified education expenses. A Trump Account is designed for general long-term wealth building — tax-deferred growth, IRA rules at age eighteen. They serve different goals. The Trump Account is not a replacement for a 529.
Is the $1,000 federal deposit guaranteed?
Eligible children born between January 1, 2025 and December 31, 2028 qualify for the one-time $1,000 federal seed deposit. The deposit is part of a pilot program established under the One Big Beautiful Bill Act of 2025. Families must elect the contribution using IRS Form 4547.
When can my child use the money in a Trump Account?
After age eighteen, traditional IRA rules apply. Generally, withdrawals before age fifty-nine and a half are subject to a 10% penalty unless they qualify for an exception. This is one important way the Trump Account differs from a UGMA, where the child gets full control at eighteen or twenty-one.
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Time-Sensitive: The Trump Account launches July 4, 2026. File IRS Form 4547 with your 2025 tax return or through trumpaccounts.gov to secure your child's $1,000 federal seed deposit. Act before the launch date to ensure eligibility.
