A New Way to Invest for Your Child's Future

As new financial planning tools become available, it’s important to understand how they fit into your overall strategy. Trump accounts are a type of savings vehicle designed to help families invest on behalf of children, but they come with specific rules and considerations. Our goal is to help you evaluate these accounts within the context of your broader financial plan and long-term goals.

What is a Trump account?

You could think of a Trump account as a cross between a traditional individual retirement account (IRA) and a 529 savings account. In brief, these accounts will initially be eligible for after-tax contributions of up to $5,000 per year until the year the beneficiary reaches age 18. Like with an IRA, potential earnings can then grow tax-deferred and eligible withdrawals will generally be taxed at the beneficiary's ordinary income tax rate. However, withdrawals are generally prohibited until the beneficiary reaches age 18, at which point the account will need to be converted to an IRA.



Like with a 529 Plan, the beneficiary doesn't need to have earned income to accept contributions and nearly anyone can contribute to their account. Funds can be accessed without penalty when the child turns 18 for qualified expenses like education, a first home purchase, or starting a business.

Who are Trump accounts for?

Any child who hasn't reached the age of 18 during the calendar year and has a Social Security number can have a Trump account. In other words, the beneficiary must be 17 or younger for the entire year to accept contributions to their account.

Can I get $1,000 in my child's Trump account for free?

Currently the One Big Beautiful Bill Act is promising a $1,000 contribution on accounts for eligible children (born between 2025 and 2028). To receive the free $1,000 federal grant, the child will need to be a U.S. citizen. Some employers have announced they will match these contributions, with the list of matching companies growing in recent weeks.

Should I open a Trump account for my child?

As with any financial decision, it is important to review your goals and determine the best tools to meet them. Contact us to see if a Trump account fits your plan. The landscape around Trump accounts is still forming, many rules and regulations need to be settled before we have a full picture of how these accounts work. We anticipate more information rolling out as we approach July.