Trump Account contribution limits
The numbers are simple; the misunderstanding is common. Here's exactly how the caps work.
- ✓$5,000 / year — combined. This is the total across everyone: parents, grandparents, friends, employers. It is not $5,000 per giver.
- ✓$2,500 / year — employer sub-limit. An employer can contribute up to $2,500 per employee's child, inside the $5,000 cap (leaving $2,500 of headroom for everyone else).
- ✓Per child, per year. Each child's account gets its own $5,000 annual cap.
- ✓Inflation adjustment after 2027. The $5,000 cap is scheduled to rise with inflation starting after 2027.
- ✓The $1,000 federal seed is separate — it doesn't eat into the annual $5,000 under current guidance.
- ✓Contributions only while the child is under 18. No contributions after the beneficiary turns 18.
Sources: Treasury/IRS guidance on IRC §530A. Last verified Oct 10, 2026.
Example
A family contributes $3,000 and the parent's employer adds $2,000: total $5,000 — the cap is hit, and grandparents can't add more that year. If the employer adds the full $2,500, the family and everyone else share the remaining $2,500.
See what $5,000/year becomes →
Common questions
$5,000 total per child per year, across all contributors combined. This is the single most misunderstood rule.
TBD Excess-contribution handling hasn't been detailed in final rules. Don't over-contribute on purpose — check current IRS guidance.
Yes — the cap is annual, so monthly contributions (e.g. ~$416/month to hit the max) are fine. Our calculator models annual amounts.
Under current guidance, employer contributions up to the $2,500 sub-limit may be excluded from the employee's income. Final rules pending — see Trump Account taxes.