Retirement Retirement Planning

Trump's IRA Program Promises a $1,000 Federal Match - Here's Who Actually Qualifies

Your child could get $1,000, but only if you qualify.

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated Sept. 13, 2026

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In the One Big Beautiful Bill Act (OBBBA), there is a provision for a new type of IRA program for children. Known as "Trump Accounts," these tax-advantaged accounts are a great way to start investing in your child's future. While it's fairly easy to open an account, not every child will qualify for the $1,000 federal contribution, which is the centerpiece of the bill.

Here are the details behind Trump's new IRA program and who is eligible for the federal contribution.

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Is the $1,000 Trump Account contribution a match?

The Treasury is running a one-time $1,000 pilot contribution for eligible Trump Accounts. You do not have to deposit $1,000 of your own money to receive it. If you never add a cent, the seed can still sit in the account and invest. If you add $5,000, the Treasury does not drop in another $5,000.

A second child born in the window can get their own $1,000. A child who already had a processed pilot election does not get another.

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Who is eligible for the $1,000 Trump Account contribution?

The $1,000 federal deposit is available only to children who meet specific requirements.

The child must meet the requirements below:

U.S. citizen
Born between Jan. 1, 2025, and Dec. 31, 2028
Valid Social Security number
An election for the pilot contribution, which is the checkbox on IRS Form 4547, line 7

A child born in 2026 who meets the other requirements can qualify for the $1,000. A child born in 2024 cannot receive the federal deposit, even if the child may still be eligible for a Trump Account.

Trump Account eligibility and $1,000 eligibility aren't the same thing. The IRS describes the $1,000 as a one-time Treasury contribution. It doesn't count against the account's regular annual contribution limit of $5,000.

What is a Trump Account?

Created by the OBBA, a Trump Account is a tax-advantaged type of traditional IRA account for children.

The child owns the account, while a parent or another authorized adult manages it while the child is a minor. During the account's initial growth period, the money generally can't be withdrawn for everyday expenses because it's designed for long-term investing.

Contributions are invested in qualifying low-cost index funds that track broad U.S. stock indexes. The goal is to give the money decades to compound rather than leaving it sitting in cash.

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How much can you contribute to a Trump Account?

Family members and other eligible contributors are able to contribute up to $5,000 annually during the account's growth period, subject to future inflation adjustments.

An employer can also contribute to a child's Trump Account. Starting on July 4, 2026, employers can contribute up to $2,500 annually for an employee or the employee's dependent through a qualifying program. Employer contributions generally count toward the $5,000 annual limit.

What happens to a Trump Account when a child turns 18?

Trump Accounts don't remain special children's accounts forever.

Starting Jan. 1 of the year the child turns 18, the special rules generally end, and the account becomes subject to traditional IRA rules. That means the money can continue to grow on a tax-deferred basis, but withdrawals generally trigger income taxes and may also trigger an additional 10% tax unless an exception applies.

For a newborn, that's potentially nearly two decades of tax-deferred investing before the account enters the traditional IRA phase.

How to open a Trump Account and claim the $1,000 contribution

Parents, guardians, and other authorized individuals can establish a Trump Account by making an election with the IRS, including through Form 4547, Trump Account Election(s).

The IRS says parents can use an IRS Individual Online Account to submit the form electronically. The process requires information such as the child's Social Security number, date of birth, and address. Parents are also able to make the election through their federal tax return.

For newborns, the Social Security number is an important first step. Parents will need the child's valid SSN before making the federal contribution election.

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Is a Trump Account worth it for your child?

The $1,000 deposit makes the program particularly interesting for families with children born during the qualifying window. Since parents aren't required to match the government contribution, there's no need to come up with $1,000 just to unlock the benefit. However, families shouldn't necessarily feel obligated to contribute the full $5,000 every year.

A household might have higher-priority financial goals, such as paying off expensive debt, building an emergency fund, or saving for near-term expenses. The Trump Account also belongs to the child, so parents should understand that they're setting aside money for the child's future rather than keeping the assets under their own control.

Bottom line

A Trump Account is worth opening for any child born between Jan. 1, 2025, and Dec. 31, 2028, since the $1,000 government payment costs nothing out of pocket to claim. The election is what triggers the deposit, so the checkbox on Form 4547 matters more than how much you contribute afterward. Past that point, treat the account as long-term investing rather than savings you can reach. Getting the account funded and growing will help your child build real wealth later in life.

Missing the birth window doesn't necessarily mean missing out on seed money. Children born before 2025 and 10 or younger could receive a $250 deposit from the Michael & Susan Dell Foundation, which committed more than $6 billion specifically for kids who fell outside the federal cutoff. This is provided that the family lives in a ZIP code with a median family income below $150,000. The account still has to be opened the same way, so the same form that unlocks the federal deposit for a newborn is what unlocks the private one for an older sibling.

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