Navigating the Trump Account: What Your Family Needs to Know
There’s a new way to save for your children’s future. Trump Accounts, a new type of savings tool created by the One Big, Beautiful Bill Act (OBBBA) in 2025, are like nothing we’ve ever seen in the United States. Families, employers, and non-profits will be able to help children save and invest for their future. Some families will even get an initial jumpstart for their account. Keep reading for more on how Trump accounts will impact your family.
Background
Accounts that offer ways to save and invest for children have been around for some time. Options like 529 college savings plans, uniform gifts to minors (UGMA) accounts, trusts trusts, and more. The financial community and elected officials have long debated the addition of a “universal” savings option for children. Some countries have offered this for years and several U.S. States have experimented with their own offering. In 2025, the concept finally gained steam and was successfully passed into law.
What is a Trump Account?
The Trump Account is a new way to save and invest for children. These new savings vehicles were established by the One Big Beautiful Bill Act. The Trump Account will be available for the first time in July 2026 to coincide with the 250th anniversary of the United Status of America.
Money in Trump Account will have some special tax protections. The funds can also be invested and grow over time. While these accounts have some similarities to other saving tools for minors, they are unique. Keep reading to learn about how the Trump Account might fit in your family’s financial plan.
Who Can Setup a Trump Account?
Trump Accounts are for minors. Specifically, a Trump Account can be setup for a child under the age of 18. In other words, anytime before their eighteenth birthday. There are some additional requirements. For example, children must be US citizens and have a social security number. Eligibility rules were crafted, in part, to ensure the benefit was only accessible by citizens and not illegal aliens.
How Do You Open a Trump Account?
To set up a Trump Account for a child, you’ll go to website the federal government has established. Parents or legal guardians will complete the setup process. You’ll need some basic information for yourself, as the parent, and for your children.
There's two methods to establish a new Trump account:
Tax Filing with form 4547
A new IRS form was created to support the Trump Account. Families can add an additional form on to their taxes to setup a new Trump Account. Form 4547 can be filed by tax preparers and many online tax services. The form does not have any impact on taxes owed.
Online Portal
The US Treasury Department has created an online portal families can use to establish a new Trump Account. Trumpaccounts.gov has a form that be filled out on a desktop or mobile device. You can submit multiple children's information at the same time.
"On the first day of every week, each one of you should set aside a sum of money in keeping with your income, saving it up, so that when I come no collections will have to be made." -1 Corinthians 16:2 ESV
How Are Trump Accounts Funded?
Part of what makes these accounts so unique is that the account can be funded from a variety of sources. Family, friends, employers, the government, and donors can all make contributions to Trump Accounts.
Parents, family, and Friends
Your family can put money into a Trump account. Family members like aunts, uncles, and grandparents can also contribute. If you have neighbors or friends at church, they can also contribute. There’s no relational requirement for who can put money into a Trump Account for your kids. Keep in mind there is still an annual maximum on how much can be contributed, overall.
Employers
Your employer can choose to contribute to your children’s Trump Account. The money comes in addition to your other compensation and benefits. Companies can contribute up to $2,500 per year. Any funds your employer contributes to your kids come tax free!
Teenagers may also get a boost. If a teenager has a part-time job, their own employer can add to their Trump Account.
The Federal Government
Some children will get a starting boost from the federal government to the tune of $1,000. Kids born between Jan. 1, 2025 and Dec. 31, 2028 will receive this “seed” award. The $1,000 will only be awarded to U.S. Citizens who have a social security number.
Donations from Charities and Generous Americans
Some successful Americans will also give funds toward children’s Trump Account. The biggest (so far) is Michael Dell’s foundation. Eligible children will receive $250 from the entrepreneur. These kinds of donations will have some criteria the donator gets to decide and determine who will benefit. For example, one gift will be tied to where you live and the income level of your community. Check for more details on your children’s specific eligibility.
How Does Money in a Trump Account Grow?
Money in a Trump Account will be invested and have the opportunity to grow over time. The account will have a “menu” of investment options to choose from. The options will include diversified mutual fund or exchange traded funds (ETFs). The investment options will also have a ceiling on ongoing fees (known as an expense ratio).
How Can You Use Funds from a Trump Account?
Trump Account dollars can be withdrawn beginning at age 18. There are no withdrawals allowed prior to that. A newly minted 18-year-old can use the funds for any purpose they wish, but the specific use of the funds will determine whether they owe any taxes. The rules are designed to mirror regulations for a Traditional IRA account.
For example, if the funds are used to buy a car then they will owe income taxes plus a 10% penalty. There are ways to avoid a penalty, such as for education. If the funds are used for qualified education expenses, like college, then there would be income taxes but no 10% penalty.
Trump Accounts can be rolled over to a traditional IRA. This could be a great way to get a jumpstart on saving for retirement. For those that choose that route, normal rules that apply to IRAs would apply.
There are situations where contributions to Trump Accounts come from multiple sources where the taxation of withdrawals is different. In those cases, a portion of a withdrawal could be taxable with the rest coming as tax free. This is complex so it will be important to keep good records and speak with a tax professional.
What Companies Will Offer Trump Accounts?
Many financial services companies have expressed a desire to offer Trump Accounts to their customers. The initial account will be setup at a company designated by the Federal government. Robinhood will serve as the designated company. Later on, you'll have the ability to move a Trump Account to another provider of your choosing. Expect more announcements as the launch date gets closer.
How do Trump Accounts Compare to 529 College Savings Plans?
529 Plans are a popular tool to save for college. Many families who want to save for their own child or a close relative will have Trump Accounts and 529 plans as possible tools for that gift.
See federal and state regulations for limitations and specifics
529 College Savings Plans
529 plans are primarily for education. While they're primarily known for saving toward a bachelor's degree, they can be used is variety of ways to benefit a child.
529 plans can be used for private K-12, 2 years degrees, community college, apprenticeships, bachelor's degrees, graduate school, and more.
How Trump Accounts Compare
If the primary goal your family wants to save for is education, a 529 will be a better choice for most families. The tax-free withdrawals for educational purposes outpace the Trump account in most scenarios. That's why it's important to consider what your family's wish is when it comes to intended use for the funds.
Conclusion
Trump Accounts are a new way to give your child a financial head start. With a government-funded $1,000 deposit for eligible kids, tax-free growth, and flexibility for education, housing, or retirement, they could become an important part of family financial planning.
As with any tool, the key is stewardship. It's important to use resources wisely to bless your family now and in the future. By planning ahead, you can help your child step into adulthood with savings already working for them.
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