5 things to know about Trump Accounts for kids

Summary: Trump Accounts are new investment accounts created by the federal government to help families save for a child's future. Eligible children under age 18 can open an account, and children born between January 1, 2025, and December 31, 2028, may qualify for a one-time $1,000 government contribution. The money is invested in low-cost U.S. stock index funds and can continue growing until adulthood. Parents or legal guardians open and manage the account until the child reaches age 18. 

1. What is a Trump Account? 

A Trump Account is a tax-advantaged investment account established under federal law to help children build long-term savings through investing. 

Unlike a traditional savings account, the money is invested in a diversified U.S. stock market index fund. Over time, those investments have the potential to grow through market gains, making the account a tool for long-term wealth building rather than short-term savings. 

The account belongs to the child, while a parent or legal guardian manages it until the child becomes an adult. 

2. Who qualifies for a Trump Account? 

Most children under age 18 with a valid Social Security number are eligible to have a Trump Account opened on their behalf. 

Some children may also qualify for a special one-time government contribution. 

To receive the $1,000 government deposit, a child must: 

• Be a U.S. citizen
• Have a valid Social Security number
• Be born between January 1, 2025, and December 31, 2028 

Children born outside of those dates can still have a Trump Account opened, but they are not eligible for the initial federal contribution. 

3. How do Trump Accounts work? 

Once opened, the account is invested in a low-cost U.S. stock market index fund designed for long-term growth. 

Families, relatives and others can contribute money to the account, subject to annual contribution limits established by federal law. In most cases, up to $5,000 can be contributed each year, although certain employer and charitable contributions follow different rules. 

The account grows tax-deferred, meaning investment earnings aren't taxed each year while they remain in the account. 

Because these accounts are intended for long-term investing, withdrawals are generally restricted until the child turns 18. After that, the account is treated more like a traditional IRA, with similar rules on when and how funds can be withdrawn. 

4. How do you open a Trump Account? 

Parents or legal guardians can open a Trump Account for an eligible child through the federal enrollment process. 

Generally, you'll need: 

• Your child's Social Security number
• The parent or guardian's identification
• Any required federal forms or online enrollment information 

To get started, families can download the official Trump Accounts app, which guides users through the enrollment process and provides access to account information once an account is established. 

Because this is a new program, additional financial institutions are expected to begin offering Trump Accounts over time. 

5. Should you open a Trump Account? 

For many families, opening a Trump Account could be worth considering, especially if your child qualifies for the $1,000 government contribution. 

Even if you aren't able to make regular contributions yourself, receiving the initial government deposit allows the investment to begin growing over time. 

That said, a Trump Account isn't the only option for saving for a child's future. Depending on your goals, you may also want to consider: 

• A 529 education savings plan for future education expenses
• A custodial investment account
• A traditional savings account for short-term goals 

Each option has different tax rules, investment choices and withdrawal flexibility. If you're unsure which approach best fits your family's goals, speaking with a financial professional can help you compare your options. 

Frequently Asked Questions 

Can grandparents contribute to a Trump Account? 

Yes. Family members and other individuals may contribute to a child's account, subject to annual contribution limits and applicable tax rules. 

Can I open a Trump Account if my child wasn't born between 2025 and 2028? 

Yes. Eligible children under age 18 can have a Trump Account. However, only children born between January 1, 2025, and December 31, 2028, qualify for the one-time $1,000 government contribution.