The IRS has unveiled guidance on Trump Accounts, a new type of Individual Retirement Account (IRA) designed for eligible children under the One Big Beautiful Bill Act (OBBBA). As part of this initiative, parents can open an IRA for their child with no initial contribution required.
Under OBBBA, a Trump account can be created for any qualifying child under 18 at the end of the calendar year. The child must have a Social Security number to qualify. Once opened, the account can accumulate savings and grow tax-free over time.
To open the account, an authorized person (such as a parent or guardian) must make an election, which will then trigger the Treasury's creation of the initial Trump account for the child. Additionally, there is a one-time $1,000 "pilot program" contribution that the federal government will deposit into the Trump account of any eligible child who is a U.S. citizen and whose birth falls between January 1, 2025, and December 31, 2028.
Funds in these accounts are subject to investment restrictions, such as requiring low-cost mutual funds or ETFs tracking U.S. stock indexes with no leverage and fees of less than 0.1%. Contributions can be made by anyone other than an employer, government entity, or charity, which will not be tax-deductible.
Parents who opt their child into Trump accounts for the first 25 million American children aged 10 and under living in low-income ZIP codes are eligible to receive an additional $250. This funding is provided by Michael and Susan Dell.
There is a limit of $5,000 per year on contributions, adjusted for inflation. An employer can make annual contributions up to $2,500 to the employee's or dependent's Trump Account without counting towards the limit, while government entities and charities are not subject to this cap.
Contributions cannot be made until July 4, 2026, and withdrawals from accounts are generally restricted until the child is 18 years old, with exceptions allowed for certain events such as distribution of assets upon death or rollover into another Trump Account.
A new website has been created by the IRS to provide more information on Trump Accounts. Final regulations will be issued in the future following a comment period, and taxpayers can find draft versions of relevant forms, including Form 4547, "Trump Account Election", available on the same site.
Under OBBBA, a Trump account can be created for any qualifying child under 18 at the end of the calendar year. The child must have a Social Security number to qualify. Once opened, the account can accumulate savings and grow tax-free over time.
To open the account, an authorized person (such as a parent or guardian) must make an election, which will then trigger the Treasury's creation of the initial Trump account for the child. Additionally, there is a one-time $1,000 "pilot program" contribution that the federal government will deposit into the Trump account of any eligible child who is a U.S. citizen and whose birth falls between January 1, 2025, and December 31, 2028.
Funds in these accounts are subject to investment restrictions, such as requiring low-cost mutual funds or ETFs tracking U.S. stock indexes with no leverage and fees of less than 0.1%. Contributions can be made by anyone other than an employer, government entity, or charity, which will not be tax-deductible.
Parents who opt their child into Trump accounts for the first 25 million American children aged 10 and under living in low-income ZIP codes are eligible to receive an additional $250. This funding is provided by Michael and Susan Dell.
There is a limit of $5,000 per year on contributions, adjusted for inflation. An employer can make annual contributions up to $2,500 to the employee's or dependent's Trump Account without counting towards the limit, while government entities and charities are not subject to this cap.
Contributions cannot be made until July 4, 2026, and withdrawals from accounts are generally restricted until the child is 18 years old, with exceptions allowed for certain events such as distribution of assets upon death or rollover into another Trump Account.
A new website has been created by the IRS to provide more information on Trump Accounts. Final regulations will be issued in the future following a comment period, and taxpayers can find draft versions of relevant forms, including Form 4547, "Trump Account Election", available on the same site.
the idea of having a retirement account for kids is genius i mean who doesn't want to give their little ones a head start on savings and financial stability? 
it's also awesome that there's no initial contribution required, that way low-income families can still take advantage of this amazing opportunity 
that's like the ultimate incentive to make a difference in their community 
i'm definitely down for supporting this initiative and helping out those families 
The $250 bonus for participating in Trump accounts for children in low-income ZIP codes seems like a nice gesture, especially since Michael and Susan Dell are footing the bill 
And what's with the $5,000 annual contribution limit? That sounds kinda restrictive to me 
But, on the other hand, it's possible that it'll help families prioritize saving for their kids' futures over other expenses. Ugh, I don't know... maybe I'm just being too skeptical 
.
. And the fact that there are no limits on contributions from employers or government entities is pretty cool too 
It's great to see organizations like theirs getting involved in making financial literacy more accessible to all kids 
.
! So, I just read about these new Trump Accounts for kids under 18, and let me tell you, it's a game-changer! But, seriously, parents can open an IRA for their kid with zero initial contribution required, which is super cool. And, the best part? The government is basically giving them a head start by adding a one-time $1k "pilot program" contribution to the account. It's like they're throwing money at these kids' future savings! 
Anyway, I guess this is a nice gesture from the government and the Dell twins, but we'll just have to wait and see how it plays out.
and 25 million low-income kiddos get an extra $250... sounds like a solid investment plan to me 
and the fact that michael and susan dell are funding $250 for low-income zip codes is just amazing 
those two are literally angels on earth 