So, what are Trump Accounts?

by | Sep 29, 2025 | Blog Series, One Big Beautiful Bill

Starting in 2025, a new kind of investment account called a Trump Account is available to help families build long-term wealth for their children. Think of it as a financial head start—like a baby shower gift from the government that grows with your child.

💵 Who’s Eligible?

  • Any child under age 18 with U.S. citizenship and a Social Security number can open a Trump Account.
  • Additionally, children born between January 1, 2025 and December 31, 2028 will receive a $1,000 government-funded deposit to jumpstart their account.

So if your child was born before 2025 or after 2028, they can still benefit from the Trump Account’s structure—but they won’t receive the initial $1,000 contribution.

đź“š How Do These Accounts Work?

  • Annual Contributions: Parents, grandparents, and employers can contribute up to $5,000 per year until the child turns 18.
  • Employers may make an annual contribution of up to $2,500 to a Trump Account, and that contribution will not impact the employee’s taxable income.
  • Tax-Friendly Growth: Funds are invested in low-cost stock index funds (like the S&P 500). While contributions are made after-tax, qualified withdrawals—such as for education or a first home—can be tax-free.
  • Flexible Use: The account is designed to support major life milestones, from college tuition to homeownership and retirement.

🏡 Why It Matters

  • Trump Accounts are part of a broader effort to help families invest in their children’s futures. Whether you’re a parent, grandparent, or employer, this is a chance to make a lasting impact—with minimal hassle and meaningful long-term benefits.

 

🧒 What If Your Child Doesn’t Qualify for the $1,000?

Even without the seed deposit, Trump Accounts offer a powerful way to build wealth over time. And if a Trump Account isn’t your thing, there are still excellent alternatives:

  • 529 Plans for education
  • Custodial Roth IRAs for teens with earned income
  • UTMAs for flexible gifting and investing
  • DAFs and CRTs for legacy-minded families

We can help you compare these options and build a strategy that fits your family’s goals.

Want more info on Trump Accounts?  Check out this post from The Council of Economic Advisors