Trump Accounts
A Trump Account is a new tax-advantaged savings account for children, created by 26 U.S.C. § 530A — a section added by the One Big Beautiful Bill Act (Public Law 119-21), signed July 4, 2025. The statute treats a Trump Account as an individual retirement account under section 408(a) — not a Roth IRA — for a beneficiary who is under age 18 and has a valid Social Security number. Once the beneficiary turns 18, the account converts to an ordinary traditional IRA and standard IRA rules take over.
Contribution rules
Total contributions to a Trump Account — other than a short list of exempt contributions (rollovers and the one-time federal pilot deposit described below) — are capped at $5,000 per calendar year until the beneficiary turns 18. That cap is indexed for inflation starting after 2027. Parents or legal guardians can contribute, as can qualified charitable and tax-exempt organizations, and employers may contribute up to $2,500 a year on an employee's behalf — that amount counts toward the same $5,000 cap and is excludable from the employee's taxable income. Once the beneficiary turns 18, they can contribute to their own account.
Actual funding cannot happen before July 4, 2026 — the statute's one-year delay from OBBBA's enactment date. Separately, the Treasury Department is making a one-time $1,000 pilot-program deposit into the account of every eligible child born between January 1, 2025 and December 31, 2028, once a parent or guardian files an election on IRS Form 4547. That $1,000 deposit doesn't count against the $5,000 annual cap.
Before the beneficiary turns 18, the account's investments are restricted by regulation to low-fee, unleveraged mutual funds or exchange-traded funds that track the S&P 500 or a similar broad index of primarily American companies — not a self-directed brokerage account.
Distribution rules
No distribution is allowed before the first day of the calendar year in which the beneficiary turns 18, with a short list of exceptions: correcting an excess contribution, the beneficiary's death, a qualified rollover to an ABLE account (available starting at age 17), and a qualified rollover to another Trump Account. After the beneficiary turns 18, the account is a traditional IRA and ordinary IRA distribution rules — including the usual early-withdrawal exceptions — apply from that point forward.
A note on a common claim that doesn't check out: several secondary summaries describe extra milestones at age 25 (a cap on how much of the balance can come out before then) and age 31 (mandatory full distribution, account termination). Neither appears anywhere in 26 U.S.C. § 530A. The only age threshold the statute sets is 18 — everything past that point runs on ordinary IRA rules, with no special Trump Account provision kicking back in at 25 or 31.
Current guidance status
Treasury and the IRS have not issued final regulations under section 530A as of this writing. Notice 2025-68 (December 2, 2025) gave preliminary guidance and announced upcoming regulations; proposed regulations covering account mechanics followed effective January 1, 2026, with further proposed regulations issued in 2026 on eligible investments and on employer contributions. Anything built on top of proposed — not final — regulations can still change before this account type is actually in use.
Coming to this library
This hub is the first page in a Trump Accounts library that will grow over coming sessions, each getting the same primary-source verification as the page above rather than a summary line:
- State tax treatmentIn progress — some states live
- California treatment (flagship state page)In progress
- Gift-tax interaction checkerIn progress
- Contribution trackersIn progress
- Reporting and tax-form guidanceIn progress
- Employer and tax-pro checklistsIn progress