Trump Accounts are a new type of tax-advantaged investment account created by the One Big Beautiful Bill Act (also called the Working Families Tax Cuts). They’re designed to help families build long-term savings for children by combining federal seed money with ongoing contributions in a tax-deferred vehicle.
Who Can Have a Trump Account?
- A Trump Account can be established for any child under age 18 who has a valid Social Security number and is a U.S. citizen or permanent resident.
- Typically, a parent or legal guardian opens and manages the account until the child reaches age 18.
Special Seed Contribution
- Children born between January 1, 2025 and December 31, 2028 automatically qualify for a one-time $1,000 federal contribution when a Trump Account is opened for them.
- Eligibility for this $1,000 seed also depends on the child’s status as a qualifying dependent with a valid Social Security number at the time of account election.
- Children born outside that date range can still have a Trump Account, but will not receive the $1,000 federal seed (though some private contributions may still apply).
Contributions & Growth
- Once active (beginning July 4, 2026), parents, relatives, employers, charities and government entities can contribute additional funds to the account.
- Annual contributions are capped at $5,000 per child (with an employer limit of $2,500 included in that cap).
- The funds must be invested in diversified U.S. stock index funds or comparable qualified investments, giving long-term growth potential with tax-deferred earnings.
Access & Use
- The child gains full ownership and control at age 18.
- Withdrawals after age 18 can be used for a variety of qualified long-term financial needs, such as education, first home purchase, or starting a business — though standard tax rules and penalties may apply if used otherwise.