On March 6, 2026, the U.S. Department of the Treasury and the IRS released proposed rules for a new one-time $1,000 pilot program connected to a savings account called a Trump Account. These accounts were created under the One Big Beautiful Bill Act (OBBBA) and are designed to help families set aside money for children under age 18. Trump Accounts will become available later in 2026.
What Are Trump Accounts?
Trump Accounts are a new kind of tax-favored savings account for children, similar in many ways to a traditional IRA. They are intended to help families build long-term savings while the child is still young. Although adults must manage the child’s accounts, the money in the account grows tax-deferred.
Before getting into the specifics about who can contribute and how the accounts work, it’s helpful to understand the following features of Trump Accounts:
- Anyone can contribute to a child’s account, including parents or guardians, grandparents, employers, nonprofit organizations or other individuals.
- Contributions can begin July 4, 2026, once the accounts are officially available.
- The annual contribution limit is $5,000, with inflation adjustments expected after 2027.
- Special rules apply until the child turns 18, including a “growth period” that follows many of the same tax rules as a traditional IRA.
These accounts are designed to give families flexibility, making it easier to save for a child’s future with the support of multiple contributors, not just parents.
Employer Contributions
In addition to personal and family contributions, the law also allows employers to support these accounts. Employers can set up an official workplace program to make contributions to an employee’s Trump Account or to the account of an employee’s dependent child.
To help employees understand what this option might look like, here are the key features of employer participation:
- An employer can contribute up to $2,500 per employee per year, with limits adjusted after 2027.
- These contributions are not considered taxable income for the employee.
- A written plan is required, similar to how employers set up dependent care assistance programs.
- Certain IRS compliance rules apply, including those regarding fairness, eligibility and employee notifications.
This structure allows employers to offer Trump Account contributions as a tax-advantaged workplace benefit, helping employees build savings for themselves or their children at no additional tax cost. Because participation may vary by employer, employees should check with their HR department or benefits administrator to learn whether their employer plans to make contributions and what the specific program details are.
Overview of the Pilot Program for $1,000 Contributions
The pilot program provides a one-time $1,000 federal contribution to qualifying children’s Trump Accounts. To receive this contribution, an adult must open the account for the child and file a special election form with the IRS.
To understand if your child will qualify, review the following criteria:
- They are expected to be the applying adult’s qualifying child for that year.
- They were born between 2025 and 2028.
- They have not already received a pilot program contribution.
- They are a U.S. citizen.
- They have a Social Security number.
Parents, foster parents or other individuals who may qualify can review IRS Publication 501 for more details on who meets the definition of a “qualifying child.”
To request the $1,000 contribution, the adult must submit Form 4547 (Trump Account Election(s)). This is the same form used to officially open a Trump Account for a child, and it must be submitted separately from a tax return, even if filed around the same time.
When You Can Apply
The proposed rules also specify a wide application window for families. Once a child becomes eligible, the adult has until Dec. 31 of the year the child turns 17 to file the election. Families can choose the timing that works best for them, whether shortly after birth, during the child’s early years or while filing annual taxes.
Although elections may be submitted starting in 2026, the IRS will not deposit the $1,000 into any account until July 4, 2026, or later. The IRS has said it plans to make contributions as quickly as possible once it confirms that a Trump Account has been opened and eligibility requirements are met.
Additional Information
To learn more about Trump Accounts or review the instructions for Form 4547, visit trumpaccounts.gov.
This Know Your Benefits article is to be used for informational purposes only and is not intended to replace the advice of an insurance professional. © 2026 Zywave, Inc. All rights reserved.
