Direct Answer
A Trump account is a child savings account created under section 530A of the Internal Revenue Code by the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 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 limited to mutual funds and ETFs that track a qualifying index of primarily U.S. companies, such as the S&P 500, use no leverage, and have annual fees and expenses of no more than 0.1 percent. Funds generally cannot be withdrawn until January 1 of the calendar year in which the beneficiary turns 18.
Trump Account (Money Account for Growth and Advancement) Profile: 2026 Rules
This profile cites the One Big Beautiful Act as signed into law in 2025. Treasury and the IRS have issued Notice 2025-68, proposed regulations and temporary regulations under section 530A; some rules may still be finalized. Rules described here reflect the statutory text; operational details may differ when Treasury finalizes rules. This does not constitute personalized financial or legal advice.
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.
A Trump account is a type of traditional IRA. Earnings grow tax-deferred, and after the growth period ends, distributions generally follow traditional IRA rules, so the taxable part is taxed as ordinary income and the 10% additional tax on early distributions can apply unless an exception fits. 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 combined for employer and family contributions in 2026 and 2027 (employer share up to $2,500 within it); pilot, general and rollover contributions are outside the cap |
| 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 | January 1 of the calendar year the beneficiary turns 18; no distributions before then except limited cases such as rollovers and death |
| Eligible beneficiaries | Any child under 18 by the end of the election year who has a Social Security number; the $1,000 pilot deposit also requires U.S. citizenship and a 2025 to 2028 birth |
Source: One Big Beautiful Act (enacted 2025). Treasury implementing regulations pending as of September 2026. The $5,000 annual limit and the $2,500 employer limit are fixed for 2026 and 2027 and are adjusted for cost of living after 2027.
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 pilot deposit is paid only after an election is made for the child.
- There is no income test for the $1,000 pilot deposit. The child must be a U.S. citizen with a Social Security number, born after December 31, 2024 and before January 1, 2029, and an election must be made.
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 generally cannot be withdrawn until January 1 of the calendar year in which the beneficiary turns 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.