Trump Accounts Are Open: The $1,000 Deposit, the $5,000 Cap and How to Sign Up
Contributions began July 4. Children born from 2025 through 2028 can get a $1,000 federal deposit, and families and employers can add up to $5,000 a year. How the election works, and how the account compares with a 529.
Trump Accounts, created by the 2025 budget law, are up and running. The IRS describes them as a new type of individual retirement account for children, and they have been able to accept contributions since July 4, 2026, twelve months after the law was signed.
The $1,000 federal deposit
A pilot program puts $1,000 into the account of an eligible child: a U.S. citizen with a valid Social Security number, born between January 1, 2025 and December 31, 2028. The deposit doesn't count against the annual contribution limit, and each child can receive it only once. Parents claim it by making an election on IRS Form 4547.
How to sign up
A parent, guardian or other authorized adult can make the election online: sign in to an IRS account through ID.me, complete Form 4547, then check the election's status. The IRS says the process takes 5 to 10 minutes and asks for the child's Social Security number, date of birth and address. Any child who has not turned 18 by the end of the year of the election and has a valid Social Security number can have an account, even one born too early for the $1,000 deposit.
Contribution rules
Contributions from family and employers combined are capped at $5,000 a year until the calendar year the child turns 18. An employer can contribute up to $2,500 a year tax-free for an employee's child, and that money counts toward the $5,000 cap. Rollovers, the pilot deposit and "general" contributions that a government or charity makes for a broad group of children don't count against it. Both dollar limits are indexed for inflation after 2027.
The money has to stay put. Withdrawals aren't allowed before the calendar year the child turns 18, and until then the account can hold only the "eligible investments" the law allows.
Trump Account or 529?
They do different jobs. For money meant for college, a 529 plan's federally tax-free withdrawals for qualified education costs are hard to beat, and our guide to the best 529 plans and our college savings calculator help size that goal. For a child eligible for the pilot, claiming the free $1,000 is an easy call either way. Many families will use both: the Trump Account for the deposit and any employer money, the 529 for tuition. Our new baby financial checklist puts the election on the list with the Social Security card and the 529.