Michael and Susan Dell of Dell Computers with Ray and Barbara Dalio of Bridgewater Associates have made a combined $10 billion dollar contribution to a child investment program launching 7/4/2026. A Trump Account (503A account) is an investment vehicle for children under 18-years old and designed for long-term savings. All children (U.S. Citizen and registered for an account) born between 1/1/2025 and 12/31/2028, will receive $1,000 from the U.S. Treasury Department to kick-start their account. This program was created under the “One Big Beautiful Bill Act” (Public Law 119-21) and was signed into law on 7/4/2025.
What is a Trump Account?
A Trump Account is a tax-advantaged investment account for children intended to educate them about finance and build long-term wealth for college, home purchase, starting a business, or retirement savings. These accounts offer children the opportunity to start investing early and continue learning the importance of investing throughout life.
Who is eligible?
All U.S Children under 18 with a valid Social Security Number are eligible to establish a Trump Account. Parents or legal guardians can open and manage trump accounts on behalf of their children.
Who can contribute?
Parents, guardians, friends and companies can all add money to a child’s trump account.
How much can I contribute?
$5000/year with a maximum of $2500 coming from an employer. An employer can contribute up to $2500 per employee per year to an employee or an employee’s dependent’s trump account. The employer’s contribution won’t be included as taxable income for the employee.
* The $5,000 contribution limit does not apply to the $1,000 pilot program contribution, qualified general contributions, or qualified rollover contributions.
What type of contributions are allowed?
- A $1,000 pilot program contribution from the Treasury Secretary for an eligible child
- Qualified general contributions (funded by states or political subdivisions), the United States, D.C., Indian tribal governments, or section 501(c)(3) tax exempt organizations.
- Employer contributions that are not includible in gross income of the employee under section 128
- Qualified rollover contributions
- Contributions from traditional sources (account beneficiary, parent, or any other person)
What type of account is this?
A trump account is a type of traditional IRA. After the growth period (18), future distributions will likely be taxable. Trump account contributions during the growth period are separate from contributions to other IRAs of the account beneficiary and not subject to the regular contribution requirements.
How is the account invested and managed?
Similar to a retirement account, funds in a trump account will be invested in a diversified investment portfolio designed to maximize long-term growth while minimizing risk. The account will be managed primarily by BNY Mellon (Bank of New York) and the funds must be invested in State Street SPDR Portfolio S&P ETF (SPYM). These investments include low-cost index funds, exchange trade funds (ETF’s), or Mutual Funds that track the S&P 500.
Other low-cost index ETFs eligible for Trump accounts
- iShares Core S&P 500 ETF (IVV)
- Vanguard Total Stock Market ETF (SPTM)
- iShares Core S&P Total US Stock Market ETF (ITOT)
How do I manage the account?
Download the Trump Account mobile app, or go to trumpaccount.com to log in, set up, and manage the account.
How can the funds be used?
The money cannot be withdrawn from Trump Accounts until account holder reaches 18-years old. The account holder then receives control of the account and can either leave the money invested or start using it for certain expenses like education, first home purchase, or starting a business.
Is Free $ only available to children born between 1/1/2025 and 12/31/2028?
No – Certain children are eligible for a $250 contribution and nearly three dozen companies and philanthropists have pledged to match donations.
Nonprofits and philanthropists
- Michael and Susan Dell are providing eligible children aged 10 and under who live in ZIP codes with a median income of $150,000 or less a contribution of $250.
- Ray and Barbara Dalio have pledged $250 each to about 300,000 children living in Connecticut ZIP codes and households with median incomes below $150,000.
- Altimeter Capital CEO Brad Gerstner said he would donate $250 to each Indiana child under five with a trump account.
- Gwynne Shotwell (President of SpaceX) has gifted 325 million dollars of SpaceX stock to fund trump accounts.
- Rap artist and songwriter Nicki Minaj has pledged $150,000 to $300,00 to the Trump accounts of her fans’ children.
Companies pledging matching funds
- Acorns
- Bank of America
- Bank of NY Mellon
- BlackRock
- Charles Schwab
- Chime
- Citi
- Empower
- Franklin Templeton
- Investment Company Institute
- JP Morgan Chase
- Mastercard
- Robinhood
- Russell Investments
- SoFi Technologies
- State Street
- Visa
- Wells Fargo
- Block, Inc
- Broadcom
- Coinbase
- Dell Technologies
- IBM
- Intel
- Micron
- Nvidia
- Charter Communications
- Chipotle Mexican Grill
- Comcast
- Continental Resources
- SpaceX
- Steak ‘n Shake
- Turning Point USA
- Uber
More Information
- A trump account is opened at your irs.gov online account by filling out an electronic form 4547 here. The account creator will receive an activation email from no-reply@trumpaccounts.treasury.gov to confirm the account is active. Future communications will come from an @trumpaccount.com email address.
- One funded trump account is allowed per child at a time
- Contributions are allowed up to $5k/year indexed for inflation after 2027
- Possessing or contributing to a trump account will not interfere with other 529 contributions or FAFSA financial aid application requirements
- Contributions to trump accounts will not be subject to Gift Tax rules
- Distributions of any kind are not allowed during the “Growth Period” (0-18 years old)
- After 18, the account becomes a traditional IRA with taxable distributions
- Employers may choose to contribute to trump accounts for their workers and their workers’ children
- Employers may choose to offer a “cafeteria plan” where employees can make pre-tax contributions to trump accounts
- Employers may not restrict trump account availability to only “higher-level” employees
- Corporations can contribute up to $2,500 to trump accounts on behalf of their employee’s children. All contributions are tax-deductible
- Nonprofit organizations and local governments can contribute to trump accounts of all children in a state or qualified geographic area
- The Department of Treasury can accept philanthropic contributions of readily tradeable Publicly Traded Stock to help fund trump accounts
- The $1,000 pilot program contribution election must be made by an individual who anticipates the eligible child will be his or her qualifying child in that tax year
- Children can contribute to their own trump account once they have earned income
- If the child dies during the growth period, the account ceases and the value is distributed to the account beneficiary with a 1099-R “total distribution”
How do I apply or get more information?
irs.gov/trumpaccounts
Trumpaccounts.gov
Investamerica.org
https://www.congress.gov/crs-product/R48910
Trump Account Call Center: 866-USA-4547
This material is compiled from sources SST believes to be reliable. The possibility of error does exist. The material is intended only as educational and may omit information on exceptions, qualifications, definitions, and effective dates. The reader should not rely solely on this material but should review original sources to determine the law and applicability for each situation. Neither the author nor Solid State Tax Service, LLC will be responsible for any error, omission, or inaccuracy under any circumstance.