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Trump Accounts: A Guide for Families
What Is a Trump Account?
A Trump Account is a new tax-advantaged investment account for children created by federal law. They go live this July 4th, 2026. The account is designed to help families save and invest for a child's future through long-term ownership of diversified U.S. stock market investments.
Think of it as a government-created investment account that gives families a way to start building wealth for children at an early age.
Who Is Eligible?
A child may be eligible if:
- They are under age 18 when the account is established.
- They have a valid Social Security number.
- Children born between January 1, 2025, and December 31, 2028, who are U.S. citizens may receive a one-time $1,000 government contribution after proper enrollment.
Key Features at a Glance
$1,000 Government Contribution
Eligible children born from 2025 through 2028 may receive a one-time $1,000 contribution from the U.S. Treasury.
Annual Contributions
Family members and other individuals may contribute up to a combined annual limit of $5,000 per child (subject to future inflation adjustments).
Employer Contributions
Employers may contribute up to $2,500 annually under certain rules, and those contributions count toward the overall annual limit.
Investment Growth
Funds must generally be invested in low-cost diversified U.S. stock index funds or ETFs that track broad U.S. equity markets.
Tax-Deferred Growth
Investment earnings grow tax-deferred until withdrawn
Frequently Asked Questions
Is a Trump Account the same as a 529 Plan?
No. A 529 plan is primarily designed for education savings. A Trump Account is structured more like a retirement account that invests in broad U.S. stock market funds and follows many traditional IRA rules.
Do parents have to contribute money?
No. Contributions are voluntary. Eligible children can still receive the government contribution even if parents choose not to add additional funds.
Can grandparents contribute?
Yes. Grandparents and other individuals may contribute, subject to annual contribution limits.
Can the money lose value?
Yes. Because the account is invested in stock market investments, balances can rise and fall with market conditions. Long-term investing involves risk, including the loss of principal.
How much can be contributed each year?
The general contribution limit is $5,000 per year per child, not including the initial government contribution.
How do families open an account?
The IRS has created Form 4547 and an online process for eligible families to establish a Trump Account.
Is this available to all children?
Generally, children under age 18 with a valid Social Security number may have an account established. Eligibility for the $1,000 federal contribution has additional requirements.
How Generations Wealth Advisors Can Help
Every family's situation is unique. We can help you evaluate:
- Whether a Trump Account fits your family's goals
- How it compares with a 529 plan
- Tax planning opportunities
- Long-term investment strategies for children and grandchildren
- Integrating family wealth planning across generations
** Please visit https://trumpaccounts.gov for the most up to date information and fill out form 4547**
Updated 07/01/2026