Trump Accounts: Here's What We Know So Far

Trump Accounts: A New Long-Term Savings Option for Children

Trump Accounts are a new federally authorized savings and investment option designed to give American children an early start on long-term financial growth. Introduced as part of a broader economic initiative tied to America’s 250th anniversary, these accounts aim to expand access to investing, promote ownership, and encourage long-term savings from birth.

Trump Accounts combine features of both an IRA and a custodial brokerage account, offering tax-advantaged growth while remaining parent-managed until the child reaches adulthood.

How Trump Accounts Work

Children born between January 1, 2025, and December 31, 2028 are eligible for a one-time $1,000 contribution from the U.S. Treasury, which is invested on the child’s behalf. Families can elect to open an account by completing IRS Form 4547 during tax filing or by using an online portal scheduled to be available by the summer of 2026.

While the federal seed contribution is limited to newborns during this pilot period, any child under age 18 may have a Trump Account opened for them. This allows families to begin saving and investing even if the child does not qualify for the government contribution.

A parent or legal guardian acts as custodian until the child turns 18, at which point control of the account transfers to the child.

Who Can Contribute

Trump accounts will be available in 2026. Contributions, however, can’t be made before July 4, 2026.

Trump Accounts can be funded by multiple sources, including:

• Parents and family members

• Employers

• Government or charitable organizations

Beginning in July 2026, individuals and employers may contribute up to $5,000 per child per year. These contributions do not require earned income and do not reduce the ability to contribute to other types of accounts.

Employer participation is expected to play an important role, with some organizations exploring contribution-matching structures similar to traditional retirement plans.

Investment Growth and Qualified Withdrawals

Funds in Trump Accounts grow tax-deferred, allowing investments to compound without annual taxes. Accounts are generally restricted while the child is a minor, reinforcing a long-term savings mindset.

Once the child reaches age 18, funds may be used for qualified purposes such as:

• Continuing long-term retirement savings

• Education expenses

• A first-time home purchase

Eligible withdrawals receive favorable tax treatment, while non-qualified withdrawals may be subject to income tax and potential penalties.

Financial Literacy and Planning Considerations

In addition to long-term savings, Trump Accounts are intended to help promote financial literacy by giving children and families a real-world view of how investing and compound growth work over time.

It’s important to note that Trump Accounts are not a replacement for existing savings tools such as 529 plans, custodial accounts, or Roth IRAs for working teens. Instead, they are another option that may complement a broader financial plan.

Final Thoughts

Trump Accounts are designed to give children an early entry point into investing and ownership, with the potential benefit of decades of compounding. As additional regulatory guidance becomes available, families should evaluate how these accounts fit alongside existing savings and planning strategies.

Thoughtful coordination with other accounts remains key to making the most of any long-term savings plan.