$1,000 pilot
One Treasury contribution for an eligible U.S. citizen child born in 2025, 2026, 2027, or 2028. It is not part of the $5,000 annual cap. Nothing is deposited before July 4, 2026.
Trump Accounts
A Trump Account is a type of traditional IRA opened for a child, with extra rules during a growth period that ends on December 31 of the year before the child turns 18. The election is Form 4547. The IRS also points people to trumpaccounts.gov and says an online election may be available beginning in the middle of 2026.
$5,000 other contributions
Parents, the child, or anyone else can contribute during the growth period even if the child has no compensation. That pool, including employer contributions, stops at $5,000 a year until later inflation adjustments.
$2,500 from an employer
A section 128 employer contribution can go to the employee’s Trump Account or a dependent’s. The employer slice is capped at $2,500 and still counts toward the $5,000.
Growth period, investments, distributions
- The growth period starts when the account is established and ends on December 31 of the year before the calendar year the child turns 18. A child born October 1, 2025, turns 18 on October 1, 2043, so the instructions’ example ends the growth period on December 31, 2042.
- During the growth period the account can be invested only in eligible investments. The instructions describe that, generally, as a mutual fund or ETF that tracks an index of primarily U.S. companies and meets other requirements.
- Distributions during the growth period are limited to qualified rollovers (including an ABLE rollover at age 17), excess contributions, and distributions if the child dies. After the growth period, traditional IRA rules generally apply, including the 10 percent additional tax on early distributions unless an exception applies.
- The authorized individual who files Form 4547 is the responsible party while the child is a minor. For a pilot election, that person anticipates the child will be their qualifying child. For an account-only election, the instructions list legal guardian, parent, adult sibling, or grandparent, in that order.
- Pilot program, qualified general, and employer contributions do not create basis. Other contributions do. The instructions point to Publication 590-B for how basis is treated on a later distribution.
Form 4547 can be filed with a return or, the instructions say, at any time. Do not attach it to Form 1040-X, and do not amend a Form 1040 just to attach it. Paper filers mail it to the refund address for that year’s return. The IRS says activation information starts going out in May 2026.
Questions
Who can have a Trump Account?
An authorized individual can elect an initial Trump Account for a child who is under 18 at the end of the election year, has a valid Social Security number issued before the election, and has not already had an election filed. For an election in 2026, the instructions say the child must have been born after December 31, 2008.
Who gets the $1,000 pilot contribution?
The child must be born after December 31, 2024, and before January 1, 2029, be a U.S. citizen, have an SSN, not have had a prior pilot election processed, and be anticipated to be the qualifying child of the person making the election. No pilot deposit is made before July 4, 2026.
What is the annual contribution limit?
During the growth period, pilot contributions, qualified general contributions, and qualified rollovers are outside the annual cap. Other contributions, including section 128 employer contributions, are limited to $5,000 a year, with cost-of-living adjustments after 2027. Employer contributions have their own $2,500 limit and still count toward the $5,000. Contributions cannot be made before July 4, 2026. No section 219 IRA deduction is allowed for a contribution to a Trump Account.