Trump Accounts: What you need to know

Update Aug. 11, 2026: The United States Treasury and the IRS issued proposed regulations on employer contributions to Trump Accounts under the Working Families Tax Cuts. More info

One of the provisions in the Big, Beautiful Bill Act (OB3) for tax year 2026 is the Trump Account. Designed to build long-term wealth, Trump Accounts are tax-advantaged, IRA-style investment accounts for US children under 18 years old. in early March, the Department of the Treasury and the IRS issued proposed regulations providing guidance regarding the pilot program.

Launching in 2026, they allow for a $1,000 initial federal contribution for children born 2025–2028. Voluntary contributions can be made to the account of up to $5,000 annually, and $2,500 of the voluntary contribution can come from an employer.

Trump accounts can be established on behalf of every eligible American child, and a  Social Security number is required. Funds are locked until age 18; then, the accounts become traditional IRAs.

Children born before January 1, 2025 and under age 18 will also still be eligible for the Trump Account, but they do not get the $1,000 deposit from the government.

On March 9, the Department of the Treasury and the Internal Revenue Service issued proposed regulations providing guidance regarding the pilot program for Trump Accounts, which are a new type of individual retirement account for eligible children. Trump Accounts and the Trump Account Pilot Program were established under the One, Big, Beautiful Bill enacted on July 4, 2025.

 Key Features:

• Investment: Money is invested in equity index funds, often with low fees; for example, a max fee of 0.10%.
• Contributions: Parents, guardians, or others can contribute up to $5,000 per year.
• Withdrawals: Funds cannot be accessed before the child turns 18.
• Conversion: At age 18, the account converts to a traditional IRA.
• How to open: Parents can file IRS Form 4547, Trump Account Election(s), or through trumpaccounts.gov to activate the account.

Advisory conversations you can have with your clients

Aside from the $1,000 contribution and potential employer contributions, other vehicles such as 529 plans might be more beneficial, especially with the OB3’s new changes to 529 plans that make them more flexible. Key updates include doubling the annual tax-free K–12 tuition withdrawal limit to $20,000; broadening qualified expenses to include tutoring, curriculum materials, and testing fees; and expanding coverage to professional certifications and vocational training.

Discuss these options with your clients and help them plan for their children’s future.

Editor’s note: This article was originally published March 18, 2026, and updated with new content on Aug. 11, 2026.