Trump Accounts

I wanted to share an overview of a new savings option you may begin hearing about called Trump Accounts, which are scheduled to become available in July 2026. These accounts were created to encourage early investing for children and may be a useful long-term planning tool for some families.

What are Trump Accounts?
Trump Accounts are a custodial-style traditional IRA established for a child under age 18. The account is owned by the child, while a parent or guardian manages it until the child reaches adulthood. Like a traditional IRA, investments grow tax-deferred over time.

Key features include:

• The child is the legal owner of the account
• A parent or guardian acts as custodian until age 18
• Investments are limited to low-cost index funds and ETFs
• Earnings grow tax-deferred
• Withdrawals are generally restricted

Who is eligible?

• Any child under age 18 with a Social Security number may have a Trump Account opened on their behalf
• Children born between January 1, 2025 and December 31, 2028 may be eligible for a one-time $1,000 federal contribution once the account is opened
• Unlike Roth IRAs for minors, earned income is not required

Contribution rules

• Families and others may contribute up to $5,000 per year (total) on a post-tax basis
• Employer contributions of up to $2,500 per year may also be permitted
• Contributions can be made beginning in July 2026

Withdrawal rules
Trump Accounts are designed to encourage long-term savings, so withdrawal rules are more restrictive than other custodial accounts:

• No withdrawals before age 18 in most cases
• After age 18, withdrawals are allowed but are treated similarly to a traditional IRA
• Withdrawals are generally taxable as ordinary income
• Early withdrawal penalties may apply if funds are taken before age 59½, unless a qualifying exception applies (such as certain education expenses, first-time home purchase (up to $10,000), birth or adoption costs (up to $5,000), qualifying medical expenses, disability, or terminal illness).

How are Trump Accounts opened?
Opening a Trump Account starts with an election process through the IRS, either by filing Form 4547 or using the upcoming online tool at trumpaccounts.gov.

Watch for updates at www.trumpaccounts.gov