An eligible child for an initial Trump account is a person under age 18 at the end of the year the election is made, with a Social Security number issued before the election, and who has not already had a Trump‑account election filed for them. To qualify specifically for the $1,000 pilot seed contribution the child must additionally: be a U.S. citizen born after Dec. 31, 2024 and before Jan. 1, 2029 (i.e., born in 2025–2028), have a valid SSN, not have had a prior pilot contribution processed, and be the "qualifying child" of the authorized filer for the tax year of the election.
Families (or other authorized individuals) claim the $1,000 by making an election on IRS Form 4547 ("Trump Account Election(s)"). Form 4547 can be filed anytime (including with your 2025 tax return); an online filing option at trumpaccounts.gov is expected in mid‑2026. The Treasury will activate accounts after the election is processed and no pilot deposit will be made earlier than July 4, 2026.
Each Trump account must have a trustee; the trustee must be a bank or an IRS‑approved nonbank trustee. The Treasury/IRS will coordinate account activation and seed deposits, but individual accounts will be held and administered by trustees (banks or approved custodians); private financial firms have also pledged to participate in administration and matching programs.
During the growth period the $1,000 must be invested only in "eligible investments," defined generally as mutual funds or ETFs that track an index of primarily U.S. companies (i.e., low‑cost index funds that track the U.S. market). Specific fund providers/vehicles have not been mandated by Treasury; trustees will offer eligible choices and some asset managers (e.g., BlackRock) have pledged support.
Withdrawals during the growth period (from establishment until Dec. 31 of the year before the child turns 18) are tightly limited: allowable moves are trustee‑to‑trustee rollovers to a rollover Trump account, qualified ABLE rollovers at age 17, distributions of excess contributions, and distributions on the beneficiary's death. After the growth period (starting the calendar year the child turns 18) normal IRA distribution rules apply (including potential taxes and early‑withdrawal penalties, with standard exceptions for things like education or first‑home purchases).
Key built‑in safeguards in the statute and IRS guidance include: trustee requirements (bank or IRS‑approved nonbank trustee); an investment restriction to eligible index mutual funds/ETFs; limits on contributions during the "growth period"; required authentication/activation by Treasury/its agent; and responsible‑party oversight while the child is a minor. Beyond those rules, detailed regulatory oversight (SEC/custodial rules) and enforcement would apply to trustees and fund providers; Treasury/IRS rulemaking and state coordination will further define operational safeguards.
Long‑term funding beyond the one‑time federal pilot seed comes from multiple channels: (1) ongoing private philanthropy (large pledges such as Michael & Susan Dell’s $6.25 billion and Ray Dalio’s state gifts), (2) employer matches and contributions, (3) state and nonprofit programs making qualified general contributions, and (4) voluntary family or third‑party deposits (subject to annual limits). Philanthropic gifts are being solicited through Treasury’s outreach (the "50 State Challenge") and are already being used to top up many eligible children’s accounts.
The "50 State Challenge" is a Treasury initiative to recruit philanthropic partners in every state to seed or top‑up Trump Accounts (Ray Dalio’s Connecticut pledge was announced as the first entry). Treasury says it will work with states that already run child‑savings programs to integrate best practices; the challenge coordinates philanthropic, employer, and state contributions rather than replacing existing state child‑savings efforts.