The rollout of Trump Accounts is officially underway, and many families are beginning to receive communications from the U.S. Department of the Treasury regarding account activation. If you have children or grandchildren under age 18, here's what you should know.
What is a Trump Account?
A Trump Account is a new tax-advantaged investment account established under IRC Section 530A for eligible children under age 18. For children born between January 1, 2025, and December 31, 2028, the federal government will provide a one-time $1,000 pilot program contribution once the account has been properly established. The account is held in the child's name, with a parent or legal guardian managing it until the child reaches age 18.
Treasury Has Released the Official Trump Accounts App
The U.S. Treasury recently launched the official Trump Accounts app, available through the major mobile app stores. Families can use the app to:
- Activate an existing Trump Account
- Receive secure communications
- Monitor account status
- Complete additional setup requirements
The app will become the primary method for managing Trump Accounts going forward.
Watch for Official Emails
If you previously elected to open a Trump Account through your tax return or IRS Form 4547, Treasury is sending activation emails in phases. The Official activation emails will come from:no-reply@TrumpAccounts.Treasury.gov
Because scams often follow new government programs, we recommend clients:
- Verify the sender's email address carefully.
- Avoid clicking links from unofficial sources.
- Use only the official Treasury app or the official Trump Accounts website when activating an account.
Didn't Open One With Your Tax Return?
If you did not elect to establish a Trump Account when filing your tax return, you still have options. Families may establish an account by filing IRS Form 4547 (Trump Account Election) or by using the online election process available through their IRS Individual Account and the Trump Accounts website/app as Treasury continues the rollout.
When Can Contributions Begin?
Although accounts may now be established and activated, eligible contributions begin on July 4, 2026. The federal $1,000 pilot contributions for qualifying children also begin with the program launch.
Contribution Limits for 2026:
- Annual contribution limit: $5,000 per child
- Contributions may come from parents, grandparents, relatives, friends, or employers.
- Employer contributions (up to $2,500) count toward the annual limit.
- The federal $1,000 pilot contribution for eligible children does not count toward the annual contribution limit.
New Tax Reporting Form: Form 5498-TA
Beginning with the new reporting requirements, trustees of Trump Accounts will issue IRS Form 5498-TA. Much like Form 5498 used for IRAs, we will be requesting this form from you at tax time.
Potential Advantages
Like any savings vehicle, Trump Accounts offer several potential benefits:
- Tax-deferred investment growth
- Opportunity to begin investing early in a child's life
- One-time $1,000 federal contribution for eligible children born between 2025 and 2028
- Annual family contributions of up to $5,000
- Broad participation—family members and employers may contribute
- Automatic transition to traditional IRA rules once the child reaches age 18.
Potential Disadvantages
Families should also consider some important limitations:
- Contributions are not tax-deductible.
- Investment choices are limited to qualifying low-cost broad U.S. equity index funds.
- Funds generally cannot be withdrawn before age 18 except in very limited circumstances.
- Withdrawals after the account converts generally follow traditional IRA taxation rules and may be subject to early withdrawal penalties if taken before age 59½ without an applicable exception.
- As with any investment account, balances are subject to market risk and are not guaranteed.
Questions?
If you'd like to discuss whether a Trump Account fits into your family's long-term savings strategy or have questions about the tax implications, we're happy to help.
DBHW Wealth Partners does not hold, manage, or receive compensation related to Trump Accounts. Accounts can only be opened through the methods mentioned above.