Trump Accounts for Children: What Families Need to Know

The IRS has released initial details on a new savings tool created under the One Big Beautiful Bill Act (OBBBA): Trump Accounts, a special type of IRA designed to help eligible children begin saving for the future. These accounts include a one-time $1,000 government contribution for qualifying children and additional options for employer or charitable contributions.

The IRS shared early guidance in Notice 2025-68, with more detailed regulations expected in the months ahead. Here’s what families should know today.

What Is a Trump Account?

A Trump Account is a newly created savings account under Sec. 530A that operates much like a traditional IRA once the child reaches adulthood. A parent, guardian, or (in some cases) the Treasury Department may establish the account on behalf of an eligible child.

Key points:

• Accounts can be opened for children who have not yet turned 18 in the year the election is made.
• The account is owned by the child, not the parent.
• Withdrawals are generally not allowed until Jan. 1 of the calendar year the child turns 18.
• After age 18, the account functions similarly to a traditional IRA, including standard tax rules.

$1,000 Government Pilot Program Contribution

Under Sec. 6434, the federal government will make a one-time $1,000 contribution for each eligible child:

• The child must be a U.S. citizen.
• The child must be born between Jan. 1, 2025 and Dec. 31, 2028.
• A parent or guardian must file the required election using Form 4547, Trump Account Election(s) (draft form coming soon).
• Treasury may also create accounts automatically for eligible children if no election has been made.

Contributions begin July 4, 2026.

Employer Contributions — Up to $2,500 Per Year

A separate OBBBA provision (new Sec. 128) allows employers to contribute up to $2,500 per year into:

• Their employees’ Trump Accounts, or
• The Trump Accounts of their employees’ dependents.

These contributions:

• Are not included in the employee’s taxable income,
• Can begin in 2026,
• Will be indexed for inflation beginning after 2027.

This creates a new benefit employers may consider incorporating into future compensation or wellness programs.

Charitable & Community Contributions

The law also allows general funding contributions—gifts targeted toward a specific “qualified class” of beneficiaries. These can be made by:

• Charitable organizations,
• State, local, or tribal governments,
• Private donors.

Qualified classes may be defined by:

• Age (e.g., all children under 18),
• A specific birth year,
• Geographic location (such as ZIP codes).

A recent example includes a large philanthropic commitment to fund accounts for millions of children who fall outside the federal $1,000 pilot program. This demonstrates how public-private partnerships may expand access to Trump Accounts beyond the core eligibility group.

How Trump Accounts Differ From Traditional IRAs

While Trump Accounts share similarities with IRAs, there are several important distinctions:

After age 18, Trump Accounts are generally treated the same as traditional IRAs for tax and distribution purposes.

When Can Families Take Action?

Although accounts cannot receive contributions until July 4, 2026, parents and guardians will soon be able to:

• Review the IRS draft of Form 4547 when posted,
• Begin preparing to make the election for eligible children,
• Evaluate whether employer contributions may be available,
• Follow additional IRS guidance as it is released.

The IRS is accepting public comments on these provisions through Feb. 20, 2026.

What This Means for Your Family

Trump Accounts create a new opportunity to jump-start savings for children during their earliest years. The $1,000 government contribution—paired with optional employer or charitable contributions—may give many families the ability to help children build long-term financial security before they even reach adulthood.

As more guidance is issued, Hawkins Ash CPAs will continue to update our OBBBA Resource Page and help families determine how these accounts fit into their financial and tax planning.