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A recent call with a financial advisor in North Carolina is representative of a common question about Trump Accounts.
Welcome to the Retirement Learning Center’s (RLC’s) Case of the Week. Our ERISA consultants regularly receive calls from financial advisors on a broad array of technical topics related to IRAs, qualified retirement plans, and other types of retirement savings and income plans, including nonqualified plans, stock options, Social Security, and Medicare. This is where we highlight the most relevant topics affecting your business.
“Will eligible children born between 2025 and 2028 automatically receive the $1,000 pilot program contribution to a Trump Account?”
No, to receive the $1,000 pilot program contribution, a parent (or other authorized individual) must affirmatively elect to participate by opening an account and claiming the contribution on behalf of the child. The IRS has made it simple to establish a Trump Account and claim the pilot program contribution. A parent, or other authorized individual, can file IRS Form 4547, Trump Account Election(s) with their taxes, or the form can be completed electronically through Form 4547 Data Submission, Trump Account Election.
Trump Accounts are a new type of tax-advantaged savings vehicle for children, functioning much like a Traditional IRA.
Eligibility: Any child with a valid Social Security number can have an account established for them until the end of the year they turn 17.
There is the potential for a maximum $5,000 annual contribution.
The Pilot Program: U.S. citizens born between 2025 and 2028 are eligible for a unique, one-time $1,000 government-funded contribution.
A calculator on www.Trumpaccounts.gov estimates the exponential growth potential of a single $1,000 contribution, as well as what additional contributions might look like.
| Initial Deposit | Annual Contribution | Estimated Value at Age 55 |
| $1,000 | $0 | $243,000 |
| $1,000 | $250 | $878,000 |
| $1,000 | $5,000 (Max) | $13,000,000 |
The U.S. Treasury has appointed BNY (Bank of New York Mellon) to oversee the program, with Robinhood providing the underlying brokerage services. Accounts are expected to become fully operational by July 4, 2026.
Contributions will be reported on Form 5498-TA, Trump Account Contribution Information, currently in draft form. Tax professionals can provide input online via Comment on tax forms and publications.
With millions of early enrollments according to the IRS, a simple election process, and a government-funded contribution to those who are eligible and claim it, Trump Accounts are quickly emerging as a potentially significant new financial planning tool for families.
For more information on the provisions of the legislation, see the (One, Big, Beautiful Bill Provisions online page.