As part of the One Big Beautiful Bill Act, the government created Trump Accounts. The Trump Account is a new tax-advantaged investment account designed to help children begin building long-term wealth at an early age. Think of it as a retirement-style account for minors that encourages long-term investing and compound growth. As of July 4th, 2026 contributions to these accounts were eligible to be made.
Key Features
✅ Eligibility
- Available for children under age 18 who have a valid Social Security number.
- Children born between January 1, 2025, and December 31, 2028, who are U.S. citizens, may qualify for an initial $1,000 government-funded contribution.
✅ Opening an Account
- A parent, guardian, or other authorized individual can establish the account on the child’s behalf.
- To get started, visit the IRS Trump Accounts website at IRS Trump Accounts. The IRS allows eligible individuals to make the required election online through Form 4547. This form is also able to be filed with your federal income tax return.
✅ Contribution Limits
- Up to $5,000 per year may be contributed to the account.
- Contributions are made with after-tax dollars and are not tax deductible.
- Family members and other eligible contributors may help fund the account.
- No additional contributions may be made after the child reaches age 18.
✅ When Can the Money Be Used?
- In general, funds cannot be withdrawn before the year the child turns age 18.
- Once the child reaches that point, the account is generally treated like a traditional IRA and becomes subject to traditional IRA distribution rules.
- No additional contributions may be made after the child reaches age 18.
Is a Trump Account Right for Your Family?
For many families, Trump Accounts may serve as a useful supplement to existing planning tools such as 529 plans, custodial accounts, and Roth IRAs for working children. While a 529 plan remains one of the most tax-efficient vehicles for education savings, a Trump Account offers broader flexibility because future distributions are not restricted to education expenses. Families with young children or grandchildren may want to evaluate whether contributing to a Trump Account should be part of their long-term wealth transfer and financial planning strategy
If you would like to discuss whether a Trump Account fits into your family’s overall tax and financial plan, please contact our office.
