Trump Accounts are a new federal savings account designed for children under age 18 that allow funds to grow tax-deferred. American children born between January 1, 2025, and December 31, 2028, are eligible for a one-time $1,000 federal contribution. These accounts are intended to supplement – not replace – existing savings tools such as 529 plans or custodial accounts.
What You Should Know Right Now
Contributions are set to begin in July 2026. Parents can enroll their child by making an election when filing their federal tax return using new IRS Form 4547, or by filing through the link below. Parents, family members, and friends may contribute up to $5,000 per child, per year. Funds must be invested in low-cost U.S. stock index funds. While growth is tax-deferred federally, some states may tax account earnings differently.
Why It Matters
Trump Accounts offer another option for saving toward a child’s future, combining tax-deferred growth with potential federal support. They are not required, but they may serve as a useful complement within a broader financial planning strategy.
Learn More
If you have questions about whether a Trump Account makes sense for your family, please contact our office. We also encourage you to review the following resources:
