Vlad Tenev explains 2026 Trump Account rules for $1,000 seed
vlad tenev’s TurboTax guide lays out how families can open a Trump Account for an eligible child in 2026. The federal account comes with a one-time $1,000 government deposit for eligible children born from January 1, 2025, through December 31, 2028.
Kelly Wallace, a CPA in Homedale, Idaho, said the U.S. government has promised that deposit for children who are U.S. citizens born in that window. She also said eligibility depends on whether the person opening the account expects the child to be a qualifying child for federal tax purposes.
Trump Accounts and Form 4547
Trump Accounts were created by the One Big Beautiful Bill, also known as the Working Families Tax Cut, which was signed into law on July 4, 2025. TurboTax describes the account as a type of traditional individual retirement account opened for the benefit of a child, and says contributions are not tax deductible.
Families who want to open one must file election Form 4547 with the IRS. TurboTax says the form can be filed with a federal income tax return, and an online version is available on TrumpAccounts.gov, the official government website for Trump Accounts.
Age limits for children
The account can only be opened for a child who is 17 years old or younger on the last day of the year in which the election is made. For elections made in 2026, that means the child must have been born by 2009.
Parents and others can contribute until the year the child turns 18. After that, the child controls the account and can contribute if they have earned income. Money generally cannot be taken out until the child is in control of the account.
Taxes, withdrawals, and access
Funds in a Trump Account grow on a tax-deferred basis. A 10% penalty may be imposed if money is taken out before the beneficiary is 59½ years old.
TurboTax says some withdrawals can be made penalty-free before 59½ for certain reasons, including higher education expenses or a first home. For families weighing whether to file in 2026, the immediate step is to check whether the child meets the age and Social Security number requirements before submitting Form 4547.
