Trump Accounts: What We Know
There’s been a lot of buzz lately about the “Trump Accounts.”
Here’s what we know: “Trump Accounts” are government-supported savings or investment accounts. In 2025, President Donald J. Trump signed the One Big Beautiful Bill, which created “Trump Accounts.” These are special tax-advantaged investment accounts designed to give American children a head start on building long-term wealth. Think of them as custodial traditional IRAs tailored for minors—owned by the child but managed by a parent or guardian until age 18.
The program’s flagship feature is a one-time $1,000 “seed” contribution from the U.S. Treasury for eligible newborns. Eligibility: U.S. Citizen, born between Jan 1, 2025 and December 31, 2028, OR thanks to the Dell (of Dell Computers) $250.00 if the child is under the age of ten and and from a zip code where the median household income is under $150,000 (this is most of our greater metropolitan area). No earned income is required for the child, and there are no income limits for contributors. Only one Trump Account per child is allowed. Accounts officially launch on July 4, 2026, but families can start the process now by making an election on their 2025 tax returns.
Contributions can be made on the child’s behalf. There can be up to $5,000 per year in standard contributions (from parents, grandparents, friends, etc.), employers can add up to $2,500 per year per employee (deductible for the employer and excluded from the employee’s taxable income), and contributions are increased based on inflation starting in 2027. Contributions (except employer ones) are not tax-deductible, but growth is tax-deferred. Withdrawals after age 18 follow traditional IRA rules (taxed as ordinary income).
The funds and any future contributions (discussed below) are automatically invested in low-cost U.S. stock index funds. The accounts are open to any child under 18, with optional contributions from parents, family, friends, employers, and even states or nonprofits. Projections from the White House Council of Economic Advisers show strong potential growth. For a child born in 2026 with maximum contributions and average S&P 500 returns, the account could reach approximately $303,800 by age 18 or over $1 million by age 28. Even with no additional contributions, the $1,000 seed alone could grow to about $5,800 by 18 and $18,100 by 28.
Generally locked until the child turns 18. Once the child turns 18, the account converts to a traditional IRA, with normal distribution rules applying (including potential penalties before 59½). Early access may be allowed in cases of disability.
How to Sign Up and Open a Trump Account
Two Options:
File IRS Form 4547 with your federal 2025 tax return
Or use the official online portal at trumpaccounts.gov
Pro tip: Even if your child isn’t a 2025–2028 newborn or qualifying for the $250 consider opening a Trump Account and let family and friends contribute tax-advantaged savings that can compound for years. Or, if you work for a small employer consider pitching to them making annual deductible contributions. Trump Accounts are billed as a signature policy to “jumpstart the American Dream” BUT this new account is not everything, they complement (but don’t replace) tools like 529 college savings plans. If you have any questions let us know.
For the latest details, visit the official sites: trumpaccounts.gov or www.irs.gov/trumpaccounts.