How Does a Trump Account Work?

Although the IRS started accepting tax returns on January 26, 2026, some “soon-to-be” filers may have lingering questions about how to identify the new Trump accounts on their federal tax return. 

Here’s a recap of what’s known about the accounts and a summary of a few unanswered questions.

• Trump accounts are custodial-style traditional IRAs for minors. The account is owned by the child but administered by an adult.
  
  
• Trump accounts are slated to be available July 4, 2026, for newborns born between January 1, 2025, and December 31, 2028.
  
  
• The Treasury intends to set up the accounts initially. Rollovers to financial institutions may be available after launch.
  
  
• A one-time $1,000 government contribution is offered for American children. Additionally, contributions can come from individuals, employers, and charities up to $5,000 each year.
  
  
• There are no withdrawals before age 18. After that, traditional IRA rules apply.

Did You Know: More than a million people have signed up for Trump accounts as of January 29, 2026, according to the Treasury Department. More than 25 million families nationwide could be eligible.

What’s Yet To Be Answered

• The IRS is expected to issue an official “Notice” with specific guidance for people who are ready to open an account. The IRS has not committed to a release date. 
  
  
• The IRS has provided some initial guidance in Notice 2025-68. The Notice gives basic instructions, including that an additional form (Form 4547) would be filed with your federal tax return.
  
  
• The account will be subject to the same required minimum distribution rules as a traditional IRA. The IRS has also indicated that the account can be converted into a Roth IRA. Details about a conversion are expected in the Notice.
  
  

Trump accounts may not be appropriate for everyone, but they may be worth exploring.

More companies, institutions, and individuals are preparing to match government contributions, which may give eligible children an even stronger financial head start.

If you are concerned about filing your federal taxes due to limited information, check with your tax, legal, or accounting professional. They can provide you with more information.

We’re here to help you evaluate how a Trump account can play a role in your overall family finances, including how the new account could alter your approach to preparing for college expenses.

^{atr.org, January 29, 2026. “Trump Accounts: List of Companies and Individuals Providing Contributions for Children”}

^{Fidelity.com, January 9, 2026. “Trump Accounts: A new way to save for kids”}

^{FoxBusiness.com, January 29, 2026. “Trump Accounts hit 1 million sign-ups after Nicki Minaj White House summit appearance, Bessent says."}