Trump Accounts: what they are, what changed on October 1, and what to do now
A Trump Account is a new kind of IRA for children under 18. Treasury opened one for every eligible child on October 1, 2026, but a parent or guardian still has to claim it. Here is everything in plain English, from a CPA firm.
Prepared by Prem Tax and Accounting Corp. Last checked against official sources on October 9, 2026.
Where things stand today
Checked against official sources on October 9, 2026. Some rules are still proposed, so details can change.
- Dec 2, 2025Treasury and the IRS issued Notice 2025-68, the first official guidance on how Trump Accounts work.
- Jul 4, 2026Accounts opened for contributions and the official launch took place. Before this date, nobody could put money in.
- Aug 2026Proposed rules were issued for employer contributions (August 11) and eligible investments (August 20). They are not final yet.
- Oct 1, 2026Treasury completed automatic enrollment: more than 60 million additional children under 18 with a Social Security number and no account now have one ready to be claimed.
- Coming upOctober 15: public hearing on the employer-contribution rules. October 20: deadline for comments on the eligible-investment rules. See the news page.
What to do now
Check your child has a Social Security number
An account needs an SSN that was issued before the account is opened. A child without one cannot have an account yet.
Claim the account, or open one
If your child was automatically enrolled, claim the account in the official app. If not, open one with Form 4547. See how to open or claim.
Make sure the $1,000 is on its way, if your child qualifies
The deposit is for U.S. citizen children born 2025 through 2028, and the account must be claimed first.
Decide whether to add money
The limit is $5,000 a year from all sources except the government and charities. Employers can add up to $2,500 of that. See contributions.
Trump Accounts at a glance
Does my child qualify?
| Your child | Gets an account? | Gets the $1,000? |
|---|---|---|
| Born 2025 to 2028, U.S. citizen, has an SSN | Yes | Yes, after the account is claimed |
| Born before 2025, under 18, has an SSN | Yes | No (some charities or states may add gifts) |
| Born 2029 or later | Yes, once born with an SSN | No, under current law |
| No Social Security number | Not yet | Not yet |
| Turns 18 before the end of the year of the election | No | No |
Is a Trump Account a good idea?
What is good
- Free $1,000 for eligible children
- Growth is tax-deferred
- Low-cost index funds, with fees capped at 0.1%
- Your child does not need earned income
- Employers can add up to $2,500 tax-free
What to know
- Contributions are not tax-deductible
- The money is locked until the year the child turns 18
- After that it is taxed like a traditional IRA, with a 10% extra tax before age 59 and a half unless an exception applies
- Only $5,000 a year, and only index-fund investing
- Other options may fit education or flexibility goals better
For most families the free $1,000 makes claiming the account worthwhile for an eligible child. Whether to add your own money depends on your goals. We compare it with a 529 plan and a custodial Roth IRA on the withdrawals and taxes page.
The guide, page by page
How to open or claim
Form 4547, the app, who can sign up a child, and the $1,000.
Read →Contributions and limits
The $5,000 limit, who can add money, and what counts.
Read →Investments
What the account can hold, the fee cap and the proposed rules.
Read →Withdrawals and taxes
When money comes out, how it is taxed, and the alternatives.
Read →For employers
The $2,500 employer contribution and what a plan needs.
Read →News and dates
Every official step so far, and what is coming up.
Read →Common questions
Do I have to claim my child's Trump Account?
Treasury opened an account for every eligible child on October 1, 2026, but a parent or guardian must claim it in the official app before it can receive the $1,000 government deposit or contributions from family, friends and employers. Treasury has not announced a claiming deadline, but the money cannot arrive until the account is claimed.
Does it cost anything to open?
No. Treasury says opening an account is free. The funds inside charge fees, which the law caps at 0.1% a year for the investments a Trump Account may hold.
Which children get the $1,000?
A one-time $1,000 deposit is for U.S. citizen children born from January 1, 2025 through December 31, 2028, with a Social Security number, whose account has been claimed. Older children can still have an account, but they do not get the government deposit.
Who owns the account?
The child is the account beneficiary and owner. The parent, guardian or other authorized person who opens or claims it acts as the responsible party and manages it while the child is a minor.
Can a grandparent open one?
For an account-only election, the proposed rules give priority to a legal guardian, then a parent, then an adult sibling, then a grandparent. Anyone can usually contribute once the account is claimed, within the yearly limit.
How do I avoid scams?
Use only the official Trump Accounts app and TrumpAccounts.gov, and the IRS.gov pages. Be careful with look-alike websites, texts or emails that ask for a Social Security number or payment. Treat a surprise request the same way you would a tax scam.
Official sources
- IRS: Trump accounts
- IRS Notice 2025-68
- Treasury: automatic enrollment completed (Oct 1, 2026)
- IRS: Form 4547 and instructions
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