Trump Accounts for Children: What Families Should Know
You may have heard about “Trump Accounts” for Children in the news recently.
Beginning in 2026, a new type of tax-advantaged investment account for children—commonly referred to as “Trump Accounts”—will become available for U.S. families. These accounts are designed to help children build long-term savings starting early in life.
What Are Trump Accounts?
Trump Accounts are investment accounts established for individuals under age 18. The accounts are intended to encourage long-term savings and investment, with growth occurring on a tax-deferred basis.
For certain eligible children born between January 1, 2025, and December 31, 2028, the federal government will provide a one-time $1,000 seed contribution, provided an election is made by a parent or guardian.
When the Program Begins
Although the law is already in place, contributions to Trump Accounts generally cannot begin until July 4, 2026.
Additional IRS guidance and administrative details are expected as implementation approaches.
This information is intended as educational only. Please contact me for a free consultation to discuss your induvial tax situation.
Who Is Eligible?
• The child must be under age 18
• The child must have a valid Social Security number
• To receive the federal seed contribution, the child must be a U.S. citizen born during the specified eligibility window and the account must be properly elected
Contribution Limits
• Family members or others may contribute up to $5,000 per year per child
• Employers may contribute up to $2,500 per year to an employee’s Trump Account or that of an employee’s dependent
WithDrawals
Withdrawals are generally restricted until the child reaches age 18. At that point, the account is treated similarly to a traditional IRA, with tax consequences depending on the nature of distributions.
As with any tax-advantaged account, families should consider how Trump Accounts fit within their broader financial and tax planning strategy.