Trump Accounts Explainer
What are Trump Accounts?
Trump Accounts are new accounts—structured as Individual Retirement Accounts (IRA) but with special rules—that are created or organized for the exclusive benefit of a child. U.S. citizens with social security numbers are eligible. Once the child turns eighteen, funds from the account can be used for certain qualifying expenses, including education and the purchase of a home. The Trump Account accepts contributions up to a maximum of $5,000 a year until the child turns eighteen. The funds in the accounts can be invested but are subject to certain restrictions.
Impact on Philanthropy
Nonprofits, including private foundations and donor-advised funds, are permitted to contribute to Trump Accounts as long as they provided contributions to one of the following qualified classes:
- All account beneficiaries under the age of 18
- All account beneficiaries under the age of 18 who reside in one or more qualified geographic areas (such as a U.S. state)
- All account beneficiaries under the age of 18 who were born in a specific calendar year
Critically, nonprofits are exempted from the $5,000 annual contribution limit.
Recent Developments
Legislation
Trump Accounts were created in 2025 by the One Big Beautiful Bill Act (P.L.119-21). P.L.119-21 also created a pilot program to contribute $1,000 into the Trump Accounts of all eligible children born between January 1, 2025 and December 31, 2028.
Regulations
The Treasury Department and the IRS issued a notice of intent to issue regulations with respect to Trump Accounts in December 2025. The guidance clarifies how Trump Accounts will work and makes explicit that donor-advised funds can make contributions to Trump Accounts.
The notice also states that Treasury and the IRS will aim to answer a series of questions through regulations, including how accounts will be established and how rollover contributions will work. Comments are due on forthcoming regulations by February 20, 2026.
Other Developments
On December 2, 2025—Giving Tuesday—Michael and Susan Dell announced a $6.25 billion donation to Trump Accounts. The Dells will give $250 to the Trump Account of children 10 and under living in areas with a median household income under $150,000. Michael and Susan Dell, Speaker of the House Mike Johnson (R-LA), Ways and Means Committee Chair Jason Smith (R-MO), Congressional Philanthropy Caucus Co-Chair Blake Moore (R-UT), and Senator Ted Cruz (R-TX) joined President Trump at the White House to announce the donation.
