Can I withdraw money from a Trump Account before age 18?

No, with very narrow exceptions. Before age 18, distributions are only allowed for qualified rollovers, ABLE account rollovers, correcting excess contributions, or the death of the beneficiary. After 18, standard traditional IRA rules apply, including a 10% early withdrawal penalty unless an exception applies.

What Is a Trump Account? The New Child Savings Account Explained

Q: What is a Trump Account?

A Trump Account is a new type of tax-advantaged savings account for children, created by the One Big Beautiful Bill Act (signed July 4, 2025). It functions like a traditional IRA set up for a minor, with special rules while the child is under 18.

Q: Who gets the $1,000 government seed deposit?

Only U.S. citizen children born between 2025 and 2028, with a Social Security number. Parents or guardians elect the deposit through IRS Form 4547 or the trumpaccounts.gov portal. The $1,000 is a one-time pilot program contribution, not available to children born outside that window.

Q: How much can a family contribute each year?

Up to $5,000 per year per child from family contributions, not counting the $1,000 pilot deposit or qualified rollovers. Employers can also contribute up to $2,500 per year per employee across all their dependents' accounts.

Q: What can the money be invested in?

Until the year the beneficiary turns 17, funds can only go into low-cost (0.10% expense ratio or less), unleveraged mutual funds or ETFs that track a broad U.S. equity index, such as the S&P 500. The IRS was still finalizing additional investment rules as of late 2026.

8 min read · Guide · Updated October 2026

What a Trump Account Actually Is

A Trump Account is a new tax-advantaged savings account for children, created by the One Big Beautiful Bill Act, signed into law on July 4, 2025. Structurally, it's a traditional IRA opened in a child's name — but with special restrictions while the child is a minor, and a one-time federal seed deposit for a specific window of birth years.

💡 In plain terms: think of it as a government-seeded retirement-style account that starts growing from birth (or whenever it's opened), with contribution rules more like an IRA than a 529 college savings plan.

Who Qualifies for the $1,000 Seed Deposit

The one-time $1,000 federal "pilot program" contribution is limited to children who are U.S. citizens born between 2025 and 2028 with a Social Security number. Parents or guardians elect the deposit through IRS Form 4547 or the trumpaccounts.gov portal, which opened July 5, 2026. Deposits began no earlier than July 4, 2026.

A Trump Account itself can be opened for any child under 18 — but only children in that 2025–2028 birth-year window receive the $1,000 seed money. Only one account is permitted per child.

How Much Can Go In Each Year

Contribution Source	Annual Limit
Family (parents, relatives, anyone)	$5,000 per child
Employer	$2,500 per employee (across all their dependents combined)
Federal pilot seed deposit	$1,000 one-time, not counted against the $5,000 cap

The $5,000 family limit is expected to adjust for inflation in future years, and doesn't include the pilot seed deposit or qualified rollovers from other accounts.

What the Money Can Be Invested In

Until the year the child turns 17, funds are restricted to low-cost, unleveraged mutual funds or ETFs that track a broad U.S. equity index — the law specifically references something like an S&P 500 index fund, capped at a 0.10% annual expense ratio. If no investment is actively chosen, the account defaults into an eligible fund automatically.

After that growth-period restriction lifts, standard IRA investment rules apply.

⚠️ As of late 2026, the IRS was still finalizing some of these investment rules through proposed regulations (comment period closed October 20, 2026). Exact eligible-fund details may be refined — check the current IRS guidance before assuming a specific fund qualifies.

Taxes and Withdrawals

While growing (under 18): Contributions aren't counted as the child's taxable income, and earnings grow tax-deferred. No one gets a tax deduction for contributing.
Withdrawals before 18: Essentially locked. Distributions are only allowed for qualified rollovers, ABLE account rollovers, correcting an excess contribution, or the death of the beneficiary.
After 18: The account behaves like a standard traditional IRA. Earnings are taxed as ordinary income when withdrawn, and a 10% early withdrawal penalty applies unless an exception applies — such as qualified education expenses, a first-home purchase, or reaching age 59½.

How It Compares to a 529 Plan

A 529 plan is purpose-built for education costs and offers more flexibility on contribution size and investment choice, with tax-free withdrawals for qualified education expenses. A Trump Account is structured more like a retirement account — tax-deferred rather than tax-free growth, a hard contribution cap, restricted investments while young, and withdrawal rules modeled on IRAs rather than education accounts. Families saving specifically for college tuition may still find a 529 more flexible; families wanting a retirement-style head start may prefer the structure a Trump Account offers. Talk to a tax advisor about which — or both — fits your situation.

Frequently Asked Questions

What is a Trump Account?

A new tax-advantaged child savings account created by the One Big Beautiful Bill Act, structured like a traditional IRA with special rules while the child is under 18.

Who gets the $1,000 government seed deposit?

Only U.S. citizen children born 2025–2028 with a Social Security number, elected via IRS Form 4547 or trumpaccounts.gov.

How much can a family contribute each year?

Up to $5,000 per child annually from family, separate from the $1,000 seed. Employers can add up to $2,500 per employee across all dependents.

Can I withdraw money before age 18?

Only for qualified rollovers, ABLE rollovers, excess-contribution correction, or the beneficiary's death. After 18, standard IRA withdrawal rules apply.

What can the money be invested in?

Until age 17, only low-cost (≤0.10% expense ratio), unleveraged broad U.S. equity index funds or ETFs. The IRS was still finalizing some details as of late 2026.