The One Big Beautiful Bill Act introduced a new type of retirement savings account known as Trump accounts for children. The goal is to help children begin building long-term retirement savings as early as birth. Trump accounts have recently returned to the spotlight following a $6.25 billion philanthropic initiative that will fund $250 deposits for eligible children. While federal agencies continue to release guidance, several key rules are already clear.
What Is a Trump Account?
A Trump account is a long-term retirement savings account created for minors. It allows contributions from family members, employers, and philanthropic organizations, with funds growing tax-deferred until distributed.
Who Can Open and Fund a Trump Account?
Any U.S. citizen under age 18 with a valid Social Security number may have a Trump account. The following parties may contribute to a child’s Trump account:
- Parents and legal guardians
- Relatives
- Employers
- Philanthropic organizations
- Government entities
Trump Account Contribution Limits
The annual contribution limit for a Trump account is $5,000 per child. This total includes contributions from parents, relatives, and employers. Employer contributions are capped at $2,500 per year, and they count toward the overall $5,000 annual limit. Government and philanthropic contributions do not count toward the annual contribution limit.
When Can Trump Account Funds Be Accessed?
Before age 18:
Neither the child nor the parent or legal guardian may access the funds while the child is a minor. Withdrawals are not permitted before age 18.
After age 18:
Once the child turns 18, the Trump account functions like a traditional IRA. Standard IRA rules apply, including:
- Contribution limits and tax treatment
- Roth IRA conversion options
- Penalties for early withdrawals before age 59½, subject to limited exceptions
Federal Pilot Program and Launch Timeline
For eligible children born between January 1, 2025, and December 31, 2028, the federal government will contribute $1,000 in seed money when a Trump account is opened. The program will officially launch on July 4, 2026.
How to Open a Trump Account
There are two ways to open a Trump account for an eligible child:
- File a completed Form 4547 with your income tax return
- Enroll through https://www.trumpaccounts.gov (portal not yet open)
For questions about Trump accounts and related planning considerations, please contact your WG advisor.
