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We hope you are enjoying the warmer weather!
Trump Accounts will be coming soon. Here is some information you may find helpful.
New Tax-Advantaged Savings Opportunity for Children: Trump Accounts
Beginning this year, families will have access to a new tax-advantaged savings vehicle known as Trump Accounts. These accounts are designed to help families save and invest for children under age 18 who have a valid Social Security number.
How the Accounts Work
Parents or legal guardians actively elect to open a Trump Account for an eligible child. The U.S. Treasury Department establishes and maintains the account infrastructure, while parents complete the enrollment process to activate the account.
Enrollment opens on July 4, 2026. To participate, families complete and submit Form 4547 using one of the following methods:
- Electronically file the form with their 2025 tax return
- Submit the form online through TrumpAccounts.gov once the portal is available
- File the form through their IRS Individual Online Account
Government Contribution
For children born after December 31, 2024, and before January 1, 2029, the federal government will make a one-time $1,000 contribution to a Trump Account once it has been properly established and activated. Participation is not automatic—parents must opt in to receive this contribution.
Additional Contributions
Families, relatives, and other individuals may contribute up to $5,000 per year (indexed for inflation) to a child's Trump Account until the child reaches age 18.
In addition, employers may be able to contribute up to $2,500 annually on a tax-free basis for the benefit of the child. Contributions made by parents, relatives, or other individuals are not tax-deductible.
The IRS has not yet provided final guidance regarding whether certain contributions could trigger gift tax reporting requirements.
Investment Options
Funds held in Trump Accounts may be invested only in certain diversified stock mutual funds or exchange-traded funds (ETFs), such as funds that track broad market indexes like the S&P 500.
Withdrawals and Tax Treatment
Generally, funds cannot be withdrawn before the beneficiary reaches age 18.
Beginning in the year the beneficiary turns 18, withdrawals will be taxed under rules similar to those that apply to traditional IRA distributions. Account balances may also be eligible for rollover into a traditional IRA or certain other retirement accounts, subject to applicable requirements.
What Families Should Know
Trump Accounts represent a new long-term savings option for children, combining tax-advantaged growth potential with an initial government-funded contribution for eligible participants. Additional guidance and implementation details are expected from the Treasury Department and IRS as the program launches.
If you have questions about whether a Trump Account may be beneficial for your family or would like assistance once enrollment becomes available, please contact our office.
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