Key facts
- Over 6 million children have been signed up for tax-advantaged Trump Accounts.
- Contributions to Trump Accounts can begin on July 4, 2026.
- Over 1 million children are eligible for the $1,000 Trump Accounts pilot program contribution.
- Eligibility for the pilot program is limited to children born between January 1, 2025, and December 31, 2028.
- Funds must be invested in mutual funds or ETFs tracking the S&P 500 or similar American equity indices.
- Withdrawals are restricted until the child turns 18, after which the account converts to a traditional IRA.
The IRS has announced that over six million children have been enrolled in the newly established Trump Accounts, a type of tax-advantaged individual retirement account for minors. Contributions to these accounts are set to begin on July 4, 2026. A key feature of the program is a $1,000 pilot program contribution offered by the federal government, but eligibility for this specific contribution is limited to children born between January 1, 2025, and December 31, 2028. This means that out of the millions enrolled, only approximately one million children qualify for the initial $1,000 seed money, representing less than 10% of all eligible children.
The Trump Accounts were created under the One, Big, Beautiful Bill, enacted on July 4, 2025. Parents, guardians, or other authorized individuals can establish an account for an eligible minor by completing IRS Form 4547, typically when filing their tax return. The funds within these accounts must be invested in specific mutual funds or exchange-traded funds that track the S&P 500 or other primarily American equity indices. Generally, funds cannot be withdrawn until the child reaches 18 years of age, at which point the account transitions into a traditional IRA, subject to its standard rules.
The Treasury Department and the IRS have issued guidance detailing the operational aspects of Trump Accounts, including initial setup, rollovers, the pilot program contribution, other qualified contributions from individuals, employers, and governmental entities, as well as investment options, distributions, and reporting requirements. The IRS is also preparing a draft version of Form 4547 for public review.