Trump Accounts are a new type of IRA for children. This post sticks to what the statute, the IRS and Treasury say. It is general information, not financial advice.
Trump account $1,000 pilot eligibility
Under IRS news release IR-2025-117 (Notice 2025-68), the government makes a one-time $1,000 pilot contribution for each eligible child, a U.S. citizen born from January 1, 2025 through December 31, 2028, for whom an election is made. Parents or guardians make the election on IRS Form 4547, and accounts could accept contributions starting July 4, 2026, according to Treasury.
Trump account contribution limit $5,000
26 U.S.C. 530A caps contributions at $5,000 a year before the beneficiary turns 18, adjusted for inflation after 2027. Employer contributions count toward that limit: an employer can add up to $2,500 per employee, tax-free to the employee. The $1,000 pilot deposit and qualified general contributions from governments and charities do not count against the cap. Many online calculators ignore that the cap will be indexed, and so does ours, which keeps $5,000 for simplicity.
Trump account Form 4547
Form 4547 is how a parent or guardian elects to open the account and enrolls in the pilot program. Treasury says there is no cost to open one, and the election can be made at any time during the year before the child turns 18. Withdrawals are not allowed before January 1 of the year the child turns 18.
Trump account growth calculator: what a projection means
Until age 18, the money must be in low-cost index funds with fees of 0.1% or less. Growth depends entirely on the return you assume. Putting in $2,000 a year for 18 years plus the $1,000 pilot deposit gives $37,000 at a 0% return, about $48,500 at 3%, about $64,700 at 6% and about $87,300 at 9%. The deposits are the only certain part: $37,000. Real stock returns swing from year to year and can be negative, which is why our planner shows several assumptions side by side instead of one headline number.
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Sources: 26 U.S.C. 530A (law.cornell.edu); IRS news release IR-2025-117 on Notice 2025-68; U.S. Treasury press release, May 28, 2026. Employer-contribution regulations were still proposed on October 9, 2026.