As a parent or guardian, securing your child’s financial future is one of the most rewarding steps you can take. In 2026, a new initiative under the Trump administration has introduced the Trump Account—a special tax-advantaged investment vehicle designed to help children build wealth from an early age. This program includes an optional pilot contribution from the government, and it’s generating buzz, including generous pledges from philanthropists like Michael Dell.

In this guide, we’ll break down what a Trump Account is, who qualifies, how to claim it, the benefits, and key tax perks. Whether you’re a new parent or have older kids under 18, this could be a game-changer for your family’s finances. Note: This information is based on current IRS guidelines as of February 2026, and activations begin in May with contributions starting July 4, 2026. Always consult a tax professional for personalized advice.

What Is a Trump Account?

A Trump Account is essentially a traditional Individual Retirement Account (IRA) tailored specifically for minors. It’s owned by the child but managed by a responsible adult until they reach adulthood. The account aims to encourage early savings and investments, giving kids a head start on building wealth.

Key features include:

• Growth Period: From setup until the end of the year before the child turns 18, the account has special rules for contributions and investments.
• Pilot Program: For eligible newborns, the U.S. Treasury provides a one-time $1,000 contribution to kickstart the account.
• Additional Support: Private donors, like Michael Dell and his wife, have pledged to add $250 per child for up to 25 million kids in qualifying lower-income areas (ZIP codes with median income of $150,000 or less).

This initiative ties into broader efforts to promote financial independence and reduce poverty cycles, as highlighted in discussions around financial literacy.

A Notable Endorsement

Tech billionaire Michael Dell recently announced his family’s commitment on X (formerly Twitter):

“My wife and I are seeding 25M kids with $250 each, and the government is giving newborns $1,000. 🇺🇸🚀 To claim your child’s ‘Future Wealth’ starter pack, you must file IRS Form 4547. Don’t let them start at zero. Claim it here: https://www.irs.gov/instructions/i4547” — Michael Dell (@MichaelDell), February 9, 2026

You can view the full post here: https://x.com/MichaelDell/status/2020904376202821904. Dell’s pledge emphasizes the program’s potential, but remember, his contribution has income-based limits and covers only the first 25 million eligible children.

Eligibility Criteria

Not every child qualifies for a Trump Account or the pilot program. Here’s the breakdown:

For Opening a Basic Trump Account

• The child must be under 18 by the end of the year the account is set up (e.g., born after December 31, 2008, for 2026 setups).
• They need a valid Social Security Number (SSN) issued for employment purposes.
• No prior Trump Account has been established for them.

Authorized individuals to set it up include parents, legal guardians, adult siblings, or grandparents (in that priority order).

For the $1,000 Government Pilot Contribution

This is more restrictive:

• The child must be born between January 1, 2025, and December 31, 2028.
• They must be a U.S. citizen.
• The authorized individual (typically a parent) expects the child to be their qualifying dependent for the tax year.
• No prior pilot election has been made for the child.

If your child doesn’t qualify for the pilot, you can still open the account and make other contributions.

For Dell’s $250 add-on, check your ZIP code’s median income and apply separately if instructions become available—it’s not automatic through the IRS form.

How to Claim: Step-by-Step Filing Process

Claiming is straightforward using IRS Form 4547. You can file it anytime, but electronic filing with your tax return is recommended for speed.

1. Gather Information:
   • Child’s full name, SSN, birthdate, and address.
   • Your details as the authorized individual (name, SSN, relationship to child).
   • If claiming for multiple children, use additional forms.
2. Complete Form 4547:
   • Part I: Your info as the responsible party.
   • Part II: Child’s details.
   • Part III: Check boxes for the pilot program if eligible.
   • Part IV: Sign under penalty of perjury, consenting to info sharing.
   • If someone else signs (e.g., via power of attorney), attach Form 2848.
3. File the Form:
   • Electronically: Attach to your 2025 or 2026 e-filed tax return (online options start mid-2026).
   • By Mail: Send to the IRS address for your return type (find at IRS.gov/PaperReturns). Don’t attach to your Form 1040.
   • No filing fee, and it takes about an hour total to prepare.
4. After Filing:
   • The IRS processes it and sends activation details (starting May 2026).
   • You’ll need to authenticate and choose investments (limited to certain mutual funds or ETFs tracking U.S. indexes during the growth period).
   • Contributions, including the pilot $1,000, begin depositing no earlier than July 4, 2026.

If issues arise (e.g., invalid SSN), the election may not go through. Track status via IRS tools or trumpaccounts.gov.

Benefits of a Trump Account

This account isn’t just a savings jar—it’s a powerful tool for long-term growth:

• Government Kickstart: Up to $1,000 free for qualifying newborns.
• Multiple Contribution Sources: Accept funds from employers (up to $2,500/year via Section 128), states, rollovers, and more—without needing the child’s earned income.
• Investment Growth: Money grows tax-deferred, potentially compounding into a significant nest egg by adulthood.
• Flexibility: Use for education, home buying, or retirement later on.
• Financial Education Opportunity: Pair it with teaching kids about investing to break poverty cycles, as noted by experts in youth financial literacy.

For families in eligible areas, add-ons like Dell’s pledge could boost the starting balance to $1,250 or more.

Tax Advantages Explained

The Trump Account shines in its tax treatment:

• Tax-Deferred Growth: Earnings accumulate without annual taxes.
• Non-Taxable Contributions: Government pilot, employer, and certain other contributions aren’t income to the child.
• Contribution Limits: Up to $5,000/year from non-exempt sources (adjusts for inflation after 2027); unlimited for pilot and rollovers.
• Post-Growth Rules: After age 18, it converts to a standard traditional IRA, with potential deductions and penalty-free withdrawals for qualified expenses (e.g., no 10% early withdrawal penalty for education or first homes).
• No Deductions Needed: Unlike regular IRAs, contributions during growth don’t require a Section 219 deduction.

Distributions are limited during growth to avoid penalties, ensuring funds stay invested.

Important Notes and Deadlines

• Start Dates: Filing is open now, but activations and deposits begin in spring/summer 2026.
• End of Growth Period: December 31 before the child’s 18th birthday—plan rollovers if needed (e.g., to an ABLE account for disabilities).
• Restrictions: Investments must meet specific criteria; no early withdrawals except in rare cases.
• Privacy and Records: The IRS uses your info only for account setup—keep copies for your records.
• Updates: Check IRS.gov or trumpaccounts.gov for changes. If your situation changes (e.g., dependency status), it might affect eligibility, but filed elections generally stand.
• No Guarantees: While philanthropic pledges like Dell’s are exciting, they’re separate from government benefits and may have their own processes.

This program represents a forward-thinking approach to family finances, aligning with conservative values of self-reliance and opportunity. If you’re eligible, don’t delay—file Form 4547 today and give your child a stronger start. For the latest, follow updates on X or official sites.

Disclaimer: This article is for informational purposes only and not tax advice. Consult the IRS or a professional for your specific case.