Trump Accounts for Kids: IRS Unveils Savings Guidelines
Published Date: 3/9/2026
Proposed Rule
Summary
The IRS is rolling out new rules for Trump accounts, special savings accounts for kids. These rules explain how to open an account, who can make decisions, and what trustees need to know. If you’re involved, get ready to comment by May 8, 2026, and keep an eye on how this might affect your money moves.
Analyzed Economic Effects
6 provisions identified: 3 benefits, 2 costs, 1 mixed.
New kid-focused IRA: who’s eligible
A Trump account is a new type of traditional IRA created for kids who have not turned 18 in the calendar year an election is made and who have a Social Security number. The IRS will create the initial Trump account and the rule is expected to affect about 73 million children in 44 million families.
Contribution limits and employer tax rule
Trump accounts generally have a $5,000 annual contribution limit (adjusted for inflation). Employers may contribute up to $2,500 per year (adjusted for inflation after 2027) to an employee's or dependent's Trump account that is excluded from the employee's income, but employer contributions count toward the $5,000 limit.
One-time $1,000 pilot contribution
The Secretary will make a one-time $1,000 pilot contribution to a Trump account for an eligible child who is a U.S. citizen born in 2025, 2026, 2027, or 2028, has a Social Security number, and has not had a prior pilot contribution request processed. That $1,000 pilot contribution does not count toward the $5,000 annual contribution limit.
Investment rules and ultra-low fees
Investments in Trump accounts must track a broad U.S. equity index (with regulated futures contracts), avoid leverage, and have annual fees and expenses at or below 0.1%. These rules shape expected returns and keep fees very low for account holders.
No withdrawals during growth period; rollovers allowed
During the growth period (from account establishment until December 31 of the year the beneficiary attains age 17), distributions are not permitted. The entire account balance may be transferred by trustee-to-trustee rollover to a new Trump account, and in the calendar year the beneficiary attains age 17 the balance may be rolled to an ABLE account.
Election deadline and first-submission rule
An election to open an initial Trump account must be made on or before December 31 of the calendar year in which the eligible individual attains age 17, using Form 4547 or an electronic application. Only the first election processed by the IRS for an eligible individual will open the initial Trump account; once processed no further initial election is allowed.
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Key Dates
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