“This is a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation. And they’ll really be getting a big jump on life.” Donald J. Trump 45th and 47th President of the United States
What is a Trump Account?
It is a new type of retirement account established by legal guardians for children who have not turned age 18 before the end of the calendar year and have a valid Social Security number. If your child is born between Jan. 1, 2025 and Dec. 31st 2028, who is a U.S. citizen with a valid Social Security number, the account includes a pilot program contribution of $1,000 from the U.S. Treasury.
“We’re building long-term financial security for millions of children by creating tax-advantage investment accounts for U.S. citizens under the age of 18. “ Trumpaccounts.gov
It will be launching on July 4, 2026.
What do I need to know about the Trump Accounts?
- You can get $1,000 for every American child born between January 1, 2025 and December 31, 2028
- The account is completely in your child’s name
- You are the sole custodian until they turn 18
- No contributions are required
- You can deposit up to $5,000 per year
- Family and friends can contribute
What steps do you need to take as a guardian?
- Enrollment can be made for your child by making an election on the new IRS Form 4547 on Trumpaccounts.gov or when you file your taxes
- You will be contacted when it’s time to activate your account.
- Relax and monitor the financial growth of your account.
- Contribute anytime but it’s not mandatory.
What are the benefits of the Trump Accounts?
- Jumpstart your child’s financial future at birth
- Whether you choose to contribute or not, the account balance will grow over time.
- Gains can be accelerated with contributions up to $5,000 per year
- The funds are invested in American companies
- Watch their stocks and performance through an app
- Child will gain education about financial investing
- At 18 years of age, they can withdraw the funds for education, home or leave to continue to grow with tax advantages of traditional IRA
Additional information about contributions and withdrawals:
- Funds can be accessed without penalty at 18 for qualified expenses
- Involving education, buying a home for the first time, or starting a business
- Taxed at ordinary income rates
- Child can contribute once they earn their own income
Who else can contribute?
Employers, philanthropists, and corporations are also allowed to contribute.
- Employers can contribute to their workers or their workers’ children’s accounts
- Employees can make pre-tax contributions under a “cafeteria plan” if employers offer a salary reduction program for Trump Accounts
- Corporation contributions are tax deductible up to $2,500 in support of the employees’ children
- All children in a state or qualified area can receive donations from nonprofit organizations, local governments, and philanthropists
Related Links:
https://www.trumpaccounts.gov/
https://www.irs.gov/trumpaccounts