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Five million. That's how many Trump Accounts had already been opened by April 15, 2026. Contributions haven't even started yet. If you're a parent who hasn't heard much about this new savings vehicle, you're not alone. But with the July 4, 2026 launch date fast approaching, now is the time to get up to speed. Missing out on free government money for your child's future isn't something you want to do by accident.
Here's the who, what, when, and how on Trump Accounts.
What Is a Trump Account?
A Trump Account is a new tax-advantaged investment account created specifically for American children. These accounts are designed to give kids a head start on long-term financial growth.
Think of it as a hybrid between a children's savings program and a traditional IRA. During childhood, the account grows tax-deferred, meaning you won't owe taxes on investment gains year after year. However, the contributions go in with post-tax dollars (this is NOT the same as a traditional pre-tax IRA). Then, when the child turns 18, the account automatically converts into a traditional IRA, unlocking the full suite of retirement savings benefits.
The goal is simple: get money working for American children as early as possible, letting decades of compound growth do the heavy lifting.
How does it compare to other accounts?
As you can start to guess, these Trump Accounts are intended to complement, not replace, these existing strategies. There’s a time and a place for all of them. One is not uniquely superior in all household situations.
Who Qualifies?
Eligibility is straightforward but worth reviewing carefully before you try to open an account.
The child must:
How Do I Qualify for the $1,000 Federal Seed Deposit:
One of the most talked-about features is the federal deposit of $1,000 directly into Trump Accounts for eligible children. This contribution is available for children born between January 1, 2025, and December 31, 2028 (nearly mirroring Trump’s term in office). If your child falls within that window, that $1,000 is essentially free money from the government.
As of April 2026, 1.2 million families had already claimed this seed contribution.
How to Open a Trump Account
There are three ways to register, and the process is simpler than you might expect.
Option 1: File IRS Form 4547 with Your 2025 Tax Return
This was the most common method used by families who opened accounts by the April 15 deadline. Form 4547, officially titled "Trump Account Election(s)," is included with your federal tax return. Now that the tax filling deadline is behind us (for those who did not file an extension), this option is no longer available.
Option 2: The TrumpAccounts.gov Online Portal
The official government portal is live! This will be the easiest route for families who missed the tax filing window. First, click on the blue “Get Started” button. From there, you may need to create a ID.Me + IRS login if you haven’t already. It requires a form of identification (I used my drivers license), so make sure your phone is nearby to take a photo of your ID as well as a video selfie.
You’ll then be directed to the IRS website. You’ll need your child’s date of birth and social security number to complete their account opening.
Option 3: Mail IRS Form 4547 Directly
You can also download and mail Form 4547 to the IRS independently of your tax return.
One important note: while you can register now, contributions won't actually be accepted until July 4, 2026. Registration and funding are two separate steps.
How much can be contributed?
The total amount of contributions between parents, grandparents, employers, and other contributors is $5,000 per year in the Trump Account. Exceptions to this include the $1,000 in federal seed money for those born between January 2025 and December 2028. When the $1,000 is contributed, you can also do the $5,000 in that year.
Can I get employer contributions into my Trump Account?
Yes. According to trumpaccounts.gov, the following companies have stated their support:
Dell, Block, Uber, BNY, Mastercard, Blockrock, VISA, Charter Communications, Charles Schwab, Chime, SoFi, State Street, Comcast, Chipotle, Steak N Shake, and Robinhood.
In addition, Michael and Susan Dell as well as Ray and Barbara Dalio have pledged as philanthropists. The Dell’s are contributing to the first 25 million children age 10 and under living in zip codes with median incomes below $150,000. Those children will receive an additional $250. The Dalio's contribution will be an extra $250 donation per child for those under 10 living in Connecticut zip codes where the median income is less than $150,000.
Where are my Oregon philanthropists at?! 😅
What can the money be invested in?
During childhood, Trump Account investments are tightly regulated to keep things simple, safe, and focused on long-term growth. Specifically, funds must be invested in:
These restrictions are intentional. The government wants these accounts to be straightforward, diversified investments. Once the account converts to a traditional IRA at age 18, standard IRA investment rules apply and the child gains full control.
Tax Implications: What You Need to Know
Understanding the tax treatment of Trump Accounts is critical to making the most of them.
During childhood:
At withdrawal (after converting to a traditional IRA at 18):
One major warning: If you don't keep careful records of after-tax contributions versus pre-tax contributions, you could end up paying taxes twice on money you already paid taxes on. Tracking your contributions from day one is essential!!
State Taxes:
What's Still Unknown
Despite 5 million accounts already being opened, there are meaningful gaps in the guidance available to families right now.
The bottom line: Trump Accounts are legitimate and established in federal law, but they are still new. Staying informed as guidance evolves is part of being a smart account holder.
Should You Open a Trump Account?
If your child qualifies for the $1,000 federal seed deposit, the answer is almost certainly yes. There's no good reason to turn down free money that will grow tax-deferred for potentially 50+ years.
As far as additional account funding, I’d urge you to consider how you’d like your child to be set at 18 and beyond. If your primary goal is education savings, a 529 plan might make the most sense.
Trump Accounts are essentially retirement accounts established for your child. With compounding growth, if you contribute $5,000 every year to this account, your child could have full access to $271,000 at 18 per trumpaccounts.gov. This sounds fantastic, but evaluating where else that money can go is important here.
When attending a seminar specifically around Trump Accounts, I couldn’t help but think, “Wait. As a millennial parent, not only am I responsible for my retirement, insanely expensive healthcare costs in my final years, AND the costs of higher education for my child… but now I need to start saving for THEIR retirement too? Thanks, but no thanks :)”
Remember folks, this is optional. I choose to use our resources for living a great life today, ensuring I have enough money for my future, saving money for my daughter's education, and that’s it (for now). I’d rather spend $5,000 of my money each year on a trip with my daughter than her retirement that I won’t be around to participate in. But hey, that’s just me.
Now, if the grandparents want another place to sock away their wealth for the precious grandbabies, let’s not get in the way of that…!
The Bottom Line
If you had or will be having a child between January 1, 2025 and December 31, 2028, go get your $1,000! If you had children prior to this date then a real conversation and analysis is warranted for what type of account you should open.
That said, unresolved questions around gift taxes and rollout logistics mean this isn't a set-it-and-forget-it situation. Stay engaged, keep good records, and don't hesitate to work with a financial professional to make the most of what this program offers.
Schedule a consultation with us if you need help deciding if a Trump Account is right for your child.
Fyooz Financial Planning is a fee-only, fiduciary financial planner based in Minneapolis, MN and Portland, OR, dedicated to helping couples achieve their financial goals. Whether you're planning for retirement, managing investments, or looking for tax-efficient strategies, our experienced team provides personalized guidance.
Disclaimer: This article is for informational purposes only and is not a recommendation of Fyooz Financial Planning, Natalie Slagle CFP®, or Daniel Slagle CFP®. Past performance may not be indicative of future results and may have been impacted by events and economic conditions that will not prevail in the future. Therefore, it should not be assumed that future performance of any specific security, investment product or investment strategy referenced in the article, either directly or indirectly, will be profitable or equal to the corresponding indicated performance level(s). No portion of the article shall be construed as a solicitation to buy or sell any specific security or investment product or to engage in any particular investment or financial planning strategy. Any reference to a market index is included for illustrative purposes only, as it is not possible to directly invest in an index. Indices are unmanaged, hypothetical vehicles that serve as market indicators and do not account for the deduction of management fees or transaction costs generally associated with investable products, which otherwise have the effect of reducing the performance of an actual investment portfolio.
