The Trump Account, a type of traditional IRA, (enacted in 2025) became available for contributions on July 4, 2026. These accounts are designed to encourage long-term savings for eligible children. Children born between January 1, 2025, and December 31, 2028, may qualify for a one-time $1,000 pilot program contribution from the U.S. Department of the Treasury, regardless of family income. The child must be a U.S. citizen and have a valid social security number in order to establish a Trump Account. An authorized individual (a legal guardian, parent, adult sibling, or grandparent, in that order of priority) can establish a Trump Account by filing IRS Form 4547 with their federal income tax return or by going online and registering for an IDme account and completing Form 4547. After the IRS processes Form 4547 the authorized individual will receive an activation e-mail from no-reply@TrumpAccounts.Treasury.gov. The authorized individual should follow the e-mail instructions to activate the child’s Trump Account. Children born outside the eligible birth years may still open an account but will not qualify for the pilot program contribution. Please note there are various rules that must be followed during the growth period of the Trump Account. The growth period begins when the initial Trump account is opened and ends on December 31st of the year in which the child turns age 17.
In addition to the federal contribution, parents, grandparents, relatives, friends, and even employers may contribute to these accounts, subject to annual contribution limits. For 2026, the total maximum contribution is $5,000, not including the $1,000 pilot program contribution with a maximum employer contribution of $2,500. The IRS recently announced a gift tax reporting safe harbor for many qualifying contributions, reducing the reporting burden for family members who choose to contribute. For families already saving through a 529 plan, these accounts may also be worth considering as part of an overall savings strategy, depending on your family’s financial goals.
As with any new tax law, there are important details to consider. State tax treatment may vary, additional IRS guidance is still being released, and different types of contributions may receive different tax treatment when funds are withdrawn. For additional information about eligibility, opening an account, or making contributions, visit TrumpAccounts.gov or IRS.gov. If you have questions about how a Trump Account may affect your tax situation or overall financial planning, your Martin Starnes advisor would be happy to assist.
Sources: IRS.gov; Revenue Procedure 2026-25; Investor.gov; GovInfo.gov.