A new savings account for kids is now available. It’s called a Trump Account (also known as an IRC §530A account). Parents, grandparents, and others can start

contributing July 4, 2026.

Think of it as a long-term savings account for a child that can grow without yearly taxes on the earnings while the money stays in the account. It has special rules while the child is under 18.

Here’s what to know—without the jargon.

1) Who can have a Trump Account?

A Trump Account can be opened for a child who:

• Will be under age 18 at the end of the year, and
• Has a Social Security number

Some children may also qualify for a $1,000 government deposit:

• The child must be a U.S. citizen, and
• Must be born between January 1, 2025 and December 31, 2028

Even if you’re not sure you’ll add your own money, it may still be worth opening the account if your child qualifies for the $1,000 deposit.

2) What makes it “tax-advantaged”?

“Tax-advantaged” mainly means this:

• The money in the account can grow over time, and you generally don’t pay tax each year on the growth while it stays in the account.

During the years before the child turns 18, the account has extra rules (the “growth period”):

• The child does not need a job for someone to contribute
• The annual contribution limit is generally $5,000 (it may change after 2027)
• You must contribute during the calendar year (you can’t wait until the next April like some IRA contributions)
• Contributions are not tax-deductible
• Investments are limited (generally certain index mutual funds or ETFs)
• The account generally can’t pay money out until the year the child turns 18

Starting January 1 of the year the child turns 18, the account generally starts following traditional IRA rules (including rules for withdrawals and taxes).

3) IRS guidance that may reduce gift-tax paperwork

Many families worry: “If I contribute for a child or grandchild, do I need to file a gift tax return?”

The IRS issued guidance (Revenue Procedure 2026-25) that can make things easier in many cases. In simple terms, it says:

• If your gifts stay within certain limits, your Trump Account contributions may count as normal gifts that can qualify for the annual gift tax exclusion, and you may not need to file a gift tax return (Form 709).

You generally may avoid filing Form 709 if all of these are true:

• Your cash contributions to Trump Accounts are your only taxable gifts for the year
• Gifts to any one person (including Trump Account contributions) stay at or under $19,000 per recipient for 2026
• Your gifts don’t create gift tax or GST tax after applying your lifetime exemptions ($15 million each for 2026, reduced by what you’ve already used)
• You aren’t required to file Form 709 for another reason

If you don’t meet even one of those conditions, you may need to file Form 709 for each beneficiary who received a contribution (even if you still don’t owe gift tax).

4) How do you open one?

These accounts are set up through a Treasury/IRS process. To open one, you make an election after the child has a Social Security number.

You do this by filing Form 4547 (“Trump Account Election(s)”) through:

• the Trump Accounts app at trumpaccounts.gov or
• your online IRS Individual Account

5) Who can contribute?

During the growth period, contributions can come from:

• Parents, grandparents, family members, friends, and the child
• Some government entities and nonprofits (in certain cases)
• Employers (up to $2,500 per year, with future inflation adjustments). Employer contributions generally count toward the annual limit.

6) Is this a good education savings account?

It can help a child build savings, but it may not be the best first choice for education.

For education goals, many families compare it to:

• 529 plans (often allow tax-free withdrawals for qualified education expenses)
• Coverdell ESAs (also education-focused, but with lower annual limits and income rules)

Also, Trump Account funds generally can’t be withdrawn until the year the child turns 18, which may not line up with every family’s needs.

Bottom line

Trump Accounts can be a helpful tool for some families—especially if your child qualifies for the $1,000 government deposit. Still, the rules are specific, and gift-tax reporting can get tricky depending on how much you give and who you give to.

If you’re considering opening an account, talk with your tax and financial advisors to confirm eligibility, contribution strategy, and whether a 530A account fits alongside other options like a 529 plan.