Direct Answer
A Trump Account (officially Money Account for Growth and Advancement, or MAGA account) is a new child savings account created by the One Big Beautiful Act (2025). Annual contribution cap is $5,000. The federal government seeds $1,000 for eligible children born 2025-2028. Employers may contribute up to $2,500/year. Investments are restricted to broad U.S. stock market index funds. Funds become accessible at age 18.
Trump Account (Money Account for Growth and Advancement) Profile: 2026 Rules
What is a Trump Account?
A Trump Account (officially the Money Account for Growth and Advancement, or MAGA account) is a new type of tax-advantaged savings account for children established by the One Big Beautiful Act signed into law in 2025. The account is designed to build long-term wealth for American children through early investment in U.S. equity markets.
The account functions similarly to a Roth IRA but with broader purpose eligibility: the account grows tax-deferred, and qualified withdrawals at age 18 are tax-advantaged. By statute, investments are restricted to broad U.S. stock market index funds, which reduces investment complexity while providing broad market exposure.
As of September 2026, Treasury Department is in the process of issuing implementing regulations. Some operational details (e.g., which brokers will administer accounts, exact withdrawal rules, and the federal deposit application process) remain subject to final rulemaking.
Key Parameters
| Feature | Detail |
|---|---|
| Annual contribution cap | $5,000 |
| One-time federal deposit | $1,000 for eligible children born Jan 1, 2025-Dec 31, 2028 |
| Employer contributions | Up to $2,500 per year |
| Investment options | Broad U.S. stock market index funds (statutory restriction) |
| Access age | 18 (early withdrawal subject to restrictions and penalties) |
| Eligible beneficiaries | U.S. citizens (birth, age, and income eligibility per Treasury rules) |
Source: One Big Beautiful Act (enacted 2025). Treasury implementing regulations pending as of September 2026. Annual contribution limit and employer limit figures are from the statutory text; these are not indexed for inflation in the original Act.
Federal Seed Deposit
Children who are U.S. citizens born between January 1, 2025 and December 31, 2028 are eligible for a one-time $1,000 federal government deposit into a Trump Account established in their name. Key conditions:
- A parent or guardian must establish the account and apply for the federal deposit through the Treasury-designated process.
- The $1,000 deposit is funded by a specific Congressional appropriation; it is not automatically deposited without an application.
- Income limits and citizenship documentation requirements are set by Treasury regulations (not yet finalized as of September 2026).
- Children born in the eligible window who are not enrolled within the applicable deadline may forfeit the $1,000 seed deposit.
Comparison to 529 Plan and UGMA Account
| Feature | Trump Account | 529 Plan | UGMA Account |
|---|---|---|---|
| Annual contribution cap | $5,000 | None (gift tax limits apply) | None |
| Use of funds | Broader purposes at age 18 | Education expenses | Any purpose (UGMA property) |
| Investment options | Broad U.S. index funds only | Plan menu (varied) | Any investment |
| Federal seed deposit | $1,000 (eligible births) | None | None |
| Employer contributions | Up to $2,500/year | No | No |
| Account ownership | Child (beneficiary) | Account owner controls | Child (irrevocable) |
Frequently Asked Questions
- What is a Trump Account?
- A Trump Account (Money Account for Growth and Advancement, or MAGA account) is a new child savings account created by the One Big Beautiful Act (2025). Annual contributions are capped at $5,000; the federal government deposits $1,000 for eligible children born 2025-2028; employers may contribute up to $2,500/year; investments are restricted to broad U.S. stock market index funds. Funds become accessible at age 18.
- Who is eligible for the $1,000 federal deposit in a Trump Account?
- Children who are U.S. citizens born between January 1, 2025 and December 31, 2028 are eligible for the one-time $1,000 federal seed deposit. A parent or guardian must establish the account and apply for the deposit through the Treasury-designated process. Income limits and eligibility requirements are set by Treasury regulations, which were still pending as of September 2026. Source: One Big Beautiful Act (2025).
- How does a Trump Account differ from a 529 plan or UGMA account?
- Unlike 529 plans, Trump Accounts are not restricted to education expenses. Unlike UGMA accounts, they have a $5,000/year cap and potential federal and employer contributions. Investment options are restricted to broad U.S. stock market index funds by statute. UGMA accounts are irrevocable property of the child; Trump Accounts are structured as a new statutory account type. Source: One Big Beautiful Act (2025); IRC Section 529; Uniform Transfers to Minors Act.
References
- One Big Beautiful Act (enacted 2025): full text via Congress.gov
- U.S. Department of the Treasury: implementing regulations (pending)
Note: Treasury implementing regulations for Trump Accounts had not been finalized as of September 2026. Operational details including account administrators, application process, and exact withdrawal rules are subject to final rulemaking. Monitor Treasury.gov for updates.