Can You Open a Trump Account for an Older Child? (w/Examples) + FAQs

This article reflects federal rules as of June 2026 and covers tax year 2025 (the 2026 filing season). State conformity is addressed below. Tax law changes fast, and Trump Account rules are still being finalized — confirm current figures with IRS.gov before you act.

Quick Answer

Yes. You can open a Trump Account for an older child — any child under 18 with a Social Security number qualifies, per IRS guidance for the 2026 filing season. But the one-time $1,000 government seed is only for children born January 1, 2025, through December 31, 2028. An older child gets the account, not the seed.

That single distinction trips up most parents. Your 9-year-old or your 15-year-old can have a Trump Account and grow money inside it tax-deferred, but Treasury will not drop $1,000 into it the way it does for a 2025 newborn. You can still fund the account yourself, up to $5,000 a year, once contributions open after July 4, 2026 — and for an older child with a shorter runway to age 18, how you fund it matters far more than the missing seed.

Timing is the pressure point right now. As of late January 2026, roughly 500,000 families had already filed to open accounts during the first days of the 2026 filing season, and the older-child window narrows every year because eligibility ends the year before the child turns 18.

Here is what you will learn:

🎯 Exactly which “older” children qualify, and why the $1,000 seed is the one thing they cannot get.
💰 A worked, dollar-by-dollar example of what a Trump Account is worth for a 10-year-old versus a newborn.
📋 How to elect an account with Form 4547 today, and what changes after the portal opens July 5, 2026.
⚖️ How a Trump Account stacks up against a 529 plan and a custodial Roth IRA for an older kid.
🚫 The 7 most expensive mistakes parents make with older-child accounts — and how to dodge each one.

What a Trump Account Actually Is

A Trump Account is a new kind of traditional IRA for children, created by the One Big Beautiful Bill Act (OBBBA), Public Law 119-21, signed July 4, 2025. It is not a college account and not a savings account. Under the hood it is a retirement account under Internal Revenue Code Section 408(a), with a set of special “training wheels” rules that apply only while the child is under 18. The Treasury Department, not a bank you pick, creates the first version of the account after a parent elects it.

The account exists to give a child a long, tax-deferred runway for compound growth. Money inside grows without being taxed each year, and the child pays tax only when they take money out — which the rules mostly block until the year they turn 18. The pitch from Treasury is that a single early deposit can grow into six figures by retirement, because decades of compounding do the heavy lifting.

The consequence of misreading what this account is can be real. Parents who treat it like a 529 expect to pull money out tax-free for tuition; they cannot, because a Trump Account follows IRA distribution rules after age 18, meaning ordinary income tax and a possible 10% early-withdrawal penalty. A common misconception is that the account is “free college money.” It is not — it is a retirement-style account with retirement-style strings.

What you should do about it: read the account as a long-horizon investment wrapper, not a spending fund. If your goal is tuition in five years, a 529 fits better, and we compare the two below.

The growth period — the key concept for older kids

The “growth period” runs from the day the account is opened through December 31 of the year before the child turns 18, per Notice 2025-68. During this window, special rules apply: money can be invested only in low-cost, broad U.S. stock index funds (expense ratio of 0.10% or less), the $5,000 contribution limit is separate from any other IRA, and the account generally cannot make distributions at all.

For an older child, the growth period is simply shorter. A child opened at age 2 has roughly 15 growth-period years; a child opened at age 15 has about two. That shorter runway is the single biggest reason older-child accounts behave so differently — less time means less compounding, so the dollars you add yourself carry far more weight than they would for a newborn.

The consequence of ignoring the growth-period deadline is permanent: you cannot open a Trump Account in the year the child turns 18 or later. Miss it, and the door is closed for that child. The next step is simple — if your child is 16 or 17, act this filing season rather than next.

The Seed vs. the Account: The Distinction That Defines This Question

Two different things are bundled under the “Trump Account” name, and separating them answers almost every older-child question.

The first is the $1,000 pilot program contribution, the “seed.” Per IRS rules, it goes only to children born between January 1, 2025, and December 31, 2028, who are U.S. citizens with a Social Security number. It is a one-time deposit from Treasury, and the earliest it lands in any account is July 4, 2026. It does not count against the $5,000 annual limit, and it does not create basis in the account.

The second is the account itself. Any child who has not turned 18 before the end of the calendar year — with a valid Social Security number — can have a Trump Account, regardless of birth year. So a child born in 2012 or 2018 is fully eligible for the account, just not for the $1,000.

Here is the consequence in plain terms: an older child loses $1,000 of free starter money, and — because that $1,000 would have compounded for years — the lifetime gap is larger than $1,000. A common misconception is that “no seed” means “not eligible.” Wrong. The account is open to them; only the bonus is not. What you should do: open the account anyway if the long-horizon, tax-deferred growth fits your plan, and make up the missing seed with your own first-year contribution if you can.

Which Situation Applies to You?

The right move depends on your child’s age this year. Find your row.

Born 2025–2028 (newborn to toddler): Full eligibility, including the $1,000 seed. Check the pilot-program box on Form 4547. This article is not mainly about you — you get the best deal.
Born 2009–2024, currently a young child or pre-teen: Account-eligible, no seed. Long runway still ahead, so compounding remains powerful. Open it and fund it.
Currently 16 or your child turns 17 this year: Account-eligible, no seed, very short runway. Eligibility ends the year before the 18th birthday, so this is likely your last filing season to act. Move now.
Turns 18 during 2026 (or already 18): Not eligible to open a Trump Account. The growth-period rule closes the door. Look at a custodial Roth IRA (if the teen has earned income) instead.
No Social Security number yet: Not eligible until the child has one. Get the SSN first, then elect.

How Much It’s Worth for an Older Child — Worked Examples

Numbers make the older-child trade-off concrete. The math below uses a 7% average annual return, a common long-run assumption for broad U.S. stock funds, and is illustrative — not a guarantee. Returns vary, and the eligible investments are index funds, so results track the market.

Example 1 — Newborn vs. 10-year-old, seed only

Picture two children, each with only the starting deposit and no further contributions.

A 2025 newborn gets the $1,000 seed. Left alone at 7% for 65 years, (1000 \times 1.07^{65} \approx 80{,}730). That single $1,000 grows to roughly $80,700 by retirement age 65.

A 10-year-old gets no seed. With $0 in and $0 added, the account grows to $0. This is the raw gap the seed creates — and why, for an older child, you have to be the funding source.

Example 2 — 10-year-old, parent funds $5,000 in year one

Now suppose you open an account for your 10-year-old and contribute the $5,000 maximum once, then leave it. The growth period runs about 8 years (until December 31 of the year before age 18), then the money keeps compounding as a traditional IRA.

To age 65, that is 55 years: (5000 \times 1.07^{55} \approx 211{,}000). One $5,000 deposit for a 10-year-old can become roughly $211,000 by retirement. The lesson: your contribution, not the seed, drives an older child’s outcome.

Example 3 — 15-year-old, parent funds $5,000 for three years

A 15-year-old has a short growth period — roughly age 15, 16, and 17, so three contribution years before the special rules end. Contribute $5,000 each year for three years ($15,000 total), and assume 7%.

Each deposit compounds to age 65. Roughly: year-one $5,000 over 50 years is about (5000 \times 1.07^{50} \approx 147{,}300); the second over 49 years about $137,700; the third over 48 years about $128,700. Combined, about $413,700 at age 65 from $15,000 contributed. Even with a late start, decades of tax-deferred compounding after 18 do most of the work.

Three Common Older-Child Scenarios

Each table below shows a real choice and what follows from it.

Scenario A — Opening for a pre-teen with no seed

Your move with a 9-year-old	What results
Elect the account on Form 4547, knowing there is no $1,000 seed	Account opens; child has ~8 growth-period years for tax-deferred compounding
Skip it because “there’s no free money”	Child loses years of tax-deferred growth that your own contributions could have earned
Wait until next year to “see how it goes”	One fewer growth-period year; eligibility clock keeps ticking toward the 18th birthday

Scenario B — A 16-year-old on the eligibility edge

Your move with a 16-year-old	What results
File Form 4547 this filing season	Account opens before the cutoff; you keep two short contribution years
Assume the teen “missed it” and do nothing	If they turn 18 next year, the window truly closes and cannot reopen
Open a custodial Roth IRA instead, since the teen has a summer job	Earned-income-based Roth growth comes out tax-free in retirement — often a stronger fit here

Scenario C — Grandparent wants to fund a grandchild’s account

Grandparent’s move	What results
Contribute up to $5,000 in a year to the grandchild’s account	Money grows tax-deferred; counts toward the single $5,000 annual cap from all sources
Add money on top of a parent’s $5,000 deposit the same year	Excess over $5,000 is an excess contribution that must be removed to avoid penalty
Open a second Trump Account for the same child	Not allowed — only one Trump Account per child is permitted

Named Examples: The Rule in Action

Maria and her 11-year-old, Diego. Maria lives in Texas and assumed Diego didn’t qualify because he wasn’t a 2025 baby. After reading the Iowa State analysis, she learned Diego is account-eligible, just not seed-eligible. She elects on Form 4547 now and plans to contribute $3,000 after July 4, 2026. Diego gets about seven growth-period years of tax-deferred compounding he would otherwise have missed.

James, whose son Tyler turns 18 in November 2026. James wanted to open an account this summer. Because Tyler turns 18 during 2026, the growth-period rule means Tyler is no longer eligible to open a Trump Account. James pivots: Tyler earned $4,200 at a warehouse job, so James helps him open a custodial Roth IRA instead, where qualified retirement withdrawals will be tax-free.

Aunt Priya funding her niece Anaya’s account. Anaya, age 7, already has a Trump Account her mother opened. Priya wants to gift money. She learns any person can contribute, but the aggregate cap is $5,000 per year across everyone. Anaya’s mother plans $5,000, so Priya coordinates to contribute the following year instead — avoiding an excess contribution that would otherwise have to be pulled back out.

Trump Account vs. 529 vs. Custodial Roth IRA

For an older child, the “what else should I use?” question is unavoidable. Here is how the three stack up.

Feature	How the accounts differ
Primary purpose	Trump Account: retirement-style long-term growth; 529: education; custodial Roth IRA: retirement, needs the child’s earned income
Annual contribution cap	Trump Account: $5,000 (tax year 2025, indexed after 2027); 529: limited only by gift-tax rules (about $19,000 per giver in 2025); Roth IRA: $7,000 in 2025, capped at the child’s earned income
Tax on growth	Trump Account: tax-deferred, taxed as ordinary income at withdrawal; 529: tax-free for qualified education; Roth IRA: tax-free in retirement
Withdrawals before 18	Trump Account: generally blocked; 529: anytime for education; Roth IRA: contributions accessible, earnings restricted
Government bonus	Trump Account: $1,000 seed only for 2025–2028 births; 529: none federally; Roth IRA: none

The takeaway for an older child without a seed: if the goal is tuition, a 529 usually wins because withdrawals are tax-free for school. If the teen has a paycheck, a custodial Roth IRA often beats a Trump Account because Roth withdrawals are tax-free in retirement while Trump Account withdrawals are taxed as ordinary income. The Iowa State experts advise comparing a Trump Account directly against a 529 before funding.

How to Open One: Form 4547, Step by Step

You open an older child’s account by electing it, not by walking into a bank. Treasury creates the initial account after your election.

Step 1 — Confirm eligibility and gather documents

Make sure your child has a valid Social Security number and has not turned 18 before year-end. Per IRS.gov, you will need an ID.me account, the child’s Social Security number, and the child’s date of birth and address. Missing the SSN stops the process cold, so get it first if the child does not have one.

Step 2 — File Form 4547, Trump Account Election(s)

Form 4547 is the election form. You can file it with your 2025 individual income tax return this filing season, or sign in to your IRS account with ID.me and submit it online. For an older child, you leave the pilot-program seed box (line 7) unchecked, because that box is for children born in 2025 and the 2025–2028 group. The whole process takes about 5 to 10 minutes.

Step 3 — Activate the account

After your election, Treasury coordinates with the trustee and sends you activation information through an authentication process; the Iowa State summary notes Treasury began sending activation details in May 2026. You then activate, and the initial account opens. The person who made the election becomes the responsible party.

Step 4 — Fund it after July 4, 2026

No contributions can be added until after July 4, 2026, and the online portal at trumpaccounts.gov opens no earlier than July 5, 2026. Once open, you (or anyone) can add up to $5,000 total per year. Contributions count only for the year made — a February 2026 deposit cannot be applied to 2025.

Deadlines, Costs, and Timing

The election clock matters most. You can file Form 4547 now with your 2025 return; the standard individual filing deadline was April 15, 2026, but the election tool remains available through your IRS online account. The harder deadline is structural: you must open the account before the year the child turns 18, and there is no extension for that.

Costs are low. There is no fee to elect or open the account, and the required investments are index funds with an expense ratio of 0.10% or less, so ongoing costs are minimal. The main “cost” of waiting is lost compounding time, which for an older child is the most expensive thing of all. Funding cannot begin until after July 4, 2026, so the realistic timeline is: elect now, activate over the summer, fund in the second half of 2026.

Mistakes to Avoid

Assuming an older child can’t have an account at all. The result is a missed account and lost tax-deferred growth that your contributions could have earned.
Expecting the $1,000 seed for a child born before 2025. The seed never arrives, and budgeting around it leaves your plan $1,000 short.
Trying to open one in the year the child turns 18. The election is rejected because eligibility ends the year before the 18th birthday — permanently.
Letting total contributions exceed $5,000 in a year. The excess is an excess contribution you must remove, or face penalties on it.
Opening a second Trump Account for the same child. Only one is allowed, so the second election fails and wastes your effort.
Treating it like a 529 and planning tax-free tuition withdrawals. Post-18 withdrawals are taxed as ordinary income, plus a possible 10% penalty, so the “tuition plan” backfires.
Forgetting funding can’t start until after July 4, 2026. Parents who try to deposit earlier are blocked and may assume the account is broken when it is simply not yet fundable.

Do’s and Don’ts

Do’s

Do open it for an older child if the long horizon fits, because tax-deferred compounding still works even without the seed.
Do file Form 4547 promptly for a 16- or 17-year-old, because their eligibility window may close after this year.
Do coordinate contributions among family, because the $5,000 cap is shared across everyone funding the account.
Do compare it to a 529 and a custodial Roth IRA first, because for older kids those often fit specific goals better.
Do keep records of your contributions, because contributions you make create basis that reduces tax on later withdrawals.

Don’ts

Don’t expect the seed for a pre-2025 child, because Treasury restricts it to 2025–2028 births and your plan should not rely on it.
Don’t plan to pull money out before 18, because distributions are generally blocked during the growth period.
Don’t exceed $5,000 in a year, because excess contributions trigger removal requirements and possible penalties.
Don’t assume your state mirrors the federal tax treatment, because state conformity to this brand-new account is not guaranteed.
Don’t wait “one more year” with a teen, because each year removed shrinks both the growth period and the chance to open it at all.

Pros and Cons for an Older Child

Pros

Tax-deferred growth, because earnings aren’t taxed each year, which compounds faster over a long horizon.
Low-cost index investing, because the eligible funds carry expense ratios of 0.10% or less.
Anyone can contribute, because parents, grandparents, and others can all fund it up to the shared $5,000 cap.
No earned income required, because, unlike a Roth IRA, the child doesn’t need a paycheck to receive contributions.
A real account in the child’s name, because it gives an older kid an early ownership stake with decades to grow.

Cons

No $1,000 seed, because the pilot money is limited to 2025–2028 births, so older kids start from zero.
Shorter runway, because fewer growth-period years mean less compounding than a newborn enjoys.
Ordinary-income tax at withdrawal, because, unlike a Roth, gains are taxed as regular income later.
Locked up until 18, because distributions are generally blocked during the growth period even for hardship.
Possible 10% early-withdrawal penalty, because IRA rules apply after 18 unless an exception fits.

Does My State Tax This?

Start with the federal rule: Trump Account earnings grow tax-deferred federally and are taxed only at withdrawal, per Notice 2025-68. That is the baseline every reader shares.

Whether your state follows is a separate question, and the honest answer in mid-2026 is: it varies and is not fully settled. States that conform to the federal treatment of IRAs will likely treat Trump Accounts similarly, but states are not required to match new federal accounts automatically, and some may issue their own guidance. If you live in a no-income-tax state — such as Texas, Florida, or Washington — there is no state income tax on the growth at all, which simplifies the question. The next step: check your state’s Department of Revenue guidance before assuming the federal treatment carries over, especially before the account starts earning.

When to Call a Professional

This article is educational and is not a substitute for advice from a licensed tax professional for your specific situation. Most parents can elect an account on their own in a few minutes. But call a CPA or tax advisor if your situation is complex — for example, if you’re weighing a Trump Account against a large 529 or custodial Roth strategy, coordinating employer or grandparent contributions, or planning around your state’s uncertain conformity. The Iowa State experts specifically recommend comparing Trump Account contributions to 529 plans with a tax advisor before funding.

What to Do Next

Confirm your child’s Social Security number and that they have not turned 18 before year-end.
Create an ID.me account and sign in to your IRS online account.
File Form 4547 to elect the account; for an older child, leave the pilot-program box unchecked.
Watch for Treasury’s activation notice and complete the authentication step.
Decide your funding plan — Trump Account, 529, custodial Roth, or a mix — before contributions open after July 4, 2026.
Talk to a CPA if you’re coordinating multiple accounts, large gifts, or state-conformity questions.

FAQs

Can you open a Trump Account for a 10-year-old? Yes. Any child under 18 with a Social Security number is account-eligible for tax year 2025. A 10-year-old qualifies for the account but not the $1,000 seed, which is reserved for children born 2025 through 2028.

Does an older child get the $1,000 government seed? No. The $1,000 pilot contribution goes only to U.S.-citizen children born January 1, 2025, through December 31, 2028. An older child can still hold and grow the account — just without the seed.

What is the oldest age you can open a Trump Account? Up to the year before the child turns 18. You cannot open one in the year the child turns 18 or later, because eligibility ends with the growth period, per IRS guidance for 2026.

How much can I contribute to an older child’s account? $5,000 per year for tax year 2025, combined across everyone who contributes. This limit is indexed for inflation after 2027 and is separate from any other IRA the child may have.

Can grandparents open or fund a Trump Account? Yes. Anyone can contribute, and a grandparent can even open the account if no parent or guardian does, following the IRS order of priority. All contributions still share the single $5,000 annual cap.

When can I start adding money? After July 4, 2026. The online portal opens no earlier than July 5, 2026, and no contributions are accepted before that date, even though you can elect the account now.

What form do I use to open one? Form 4547, Trump Account Election(s). You file it with your 2025 return or submit it through your IRS online account using ID.me, which takes about 5 to 10 minutes.

Can I withdraw money before my child turns 18? No. During the growth period, distributions are generally blocked, even for hardship, with narrow exceptions like rollovers, excess-contribution corrections, or the beneficiary’s death.

How is an older child’s account taxed when they take money out? As ordinary income on amounts above basis, starting the year they turn 18. A 10% early-withdrawal penalty may also apply unless an exception, like higher education or a first home, fits.

Is a Trump Account better than a 529 for an older child? It depends on the goal. A 529 is usually better for tuition because withdrawals are tax-free for education, while a Trump Account suits long-term, retirement-style growth taxed later as ordinary income.

Can my child have both a Trump Account and a 529? Yes. They are separate accounts with separate rules, and contributing to one does not reduce what you can put in the other. Many families use both for different goals.

Does my state tax Trump Account growth? It varies. Federally, growth is tax-deferred. States that conform to federal IRA treatment will likely follow, but conformity to this new account is not guaranteed — check your state’s Department of Revenue.

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