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Trump accounts are a new type of individual retirement account (IRA) for eligible children. The IRS has released Notice 2025-68, which provides a general overview of how Trump Accounts work and addresses certain initial questions.
Contributions
Contributions to Trump accounts cannot be made before July 5, 2026. After that, there are five types of contributions that can be made:
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The federal government will make a one-time $1,000 pilot program contribution to the Trump account of each eligible child for whom an election is made. Eligible children are US citizens born on or after January 1, 2025 through December 31, 2028.
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Qualified general contributions can be funded by states, the federal government, or 501(c)(3) tax-exempt organizations.
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Qualified rollover contributions can be made from a prior Trump account.
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Employers can contribute to a Trump account of the employee or employee’s dependent up to $2,500 per year.
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Contributions can be made by the account beneficiary, parents, or other people.
The annual contribution limit for a Trump account is $5,000, subject to cost-of-living adjustments after 2027. This limit does not apply to pilot program contributions, qualified general contributions, or qualified rollover contributions.
Eligible Investments
The funds in Trump accounts must be invested in certain mutual funds or exchange-traded funds that track the S&P 500 or another index of primarily American equities.
Withdrawals
Withdrawals cannot be made from Trump accounts before January 1 of the calendar year in which the child turns 18. After that, the account will be treated as a traditional IRA and is subject to the same rules as other traditional IRAs. This means that withdrawals would be subject to a 10% additional tax penalty if taken before age 59 1/2 unless distributions qualify for an exception, such as distributions made for qualified higher education expenses or by a first time home buyer.
Setting Up an Account
A Trump account can be established by making an election on IRS Form 4547, Trump Account Elections through an online application on trumpaccounts.gov.
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