As families prepare to expand their financial strategy toolkits in 2026 and beyond, a brand-new investment vehicle is entering the landscape: Trump Accounts. Designed to give children a head start on long-term saving and investment growth, these accounts blend features of traditional retirement accounts with a focus on early financial empowerment.
Inevitably, this may complicate the savings landscape for what and how to save for your children. Many people thought it was confusing when they have to choose between putting money in a brokerage account in their own name, with the implied goal of having this money benefit my children, putting money into a state sponsored 529 plan thereby earmarking the funds for some educational endevor (or perhaps a Roth contribution later in life) or finally the freedom and flexibility of a UTMA, with the limited tax benefits they provide. Now enter the fourth option: Trump Accounts.
What Are Trump Accounts?
Trump Accounts are federally established, tax-advantaged investment accounts for children under the age of 18. They are crafted to help young Americans build savings through long-term investment in broad U.S. stock market index funds. The initiative officially launches in July 2026, with contributions and access mechanisms rolling out progressively.
The goal? Encourage financial literacy and compound growth from an early age, allowing children and families to harness the power of time in the market. In this way, many families never darken the door of a financial planner or never attend something as foundational as Financial Peace University and in this way, these accounts will hopefully begin the process of our government (which is typically not known for it's financial stewarship), filling the gap for some familes of what Proverbs 13:22 tells is actual wealth transition - knowledge! A good man leaves an inheritance to his children's children, but the sinner's wealth is laid up for the righteous.
Key Features Explained
1. Tax-Advantaged Growth
Money in a Trump Account grows tax-deferred, meaning earnings are not taxed until withdrawal — similar to a traditional retirement account.
2. Federal Seed Contribution
Eligible children receive a one-time $1,000 contribution from the U.S. Treasury, provided the account is opened before the year they turn 18, and they were born between January 1, 2025, and December 31, 2028. This $1,000 does not count toward annual contribution limits.
3. Contribution Flexibility
Family members, friends, employers, and even corporations or nonprofits can contribute:
Up to $5,000 per year per child from personal sources (indexed for inflation after 2027).
Employers may contribute up to $2,500 annually for a child through cafeteria or benefit plans — excluded from employee taxable income.
Qualified organizations and government entities can make additional contributions that do not count against the $5,000 limit.
4. Investment Requirements
By law, contributions must be invested in broad U.S. equity index funds (for example, S&P 500-type funds) with low fees (typically no more than 0.10%). This focus on diversified, long-term market exposure is intended to support growth over the years.
Frequently Asked Questions (FAQ Highlights - These can be found on trumpaccounts.gov
Here are the key points from the frequently asked sections that you should understand about Trump Accounts.
Who Is Eligible?
Any U.S. child under 18 with a valid Social Security number can have a Trump Account established on their behalf. Parents or guardians set up the account and act as custodians until the child reaches adulthood.
When Can Funds Be Used?
Funds generally cannot be withdrawn until age 18. After that point, the account operates similarly to a traditional IRA:
Contributions can continue (subject to IRA rules and earned income requirements).
Withdrawals follow traditional IRA taxation and penalty rules, including potential early withdrawal taxes if taken before age 59½.
Certain exceptions (like higher education or first-home purchase) may reduce penalties for qualified expenses.
How Do I Open an Account?
Initially, a Trump Account can be elected when filing IRS Form 4547 with your 2025 tax return. Starting in mid-2026, families can also open accounts via the online portal at trumpaccounts.gov. After making the election, Treasury or its agent will guide activation and setup with a financial institution.
One basic piece of advice to make sure you are in the know of any changes or updates that may take place with Trump Accounts would be to go to their website https://trumpaccounts.gov/ and put your email address in their "Email me updates" section, which, as of today, is currently right at the top of the website. By the way, speaking of their website, one thing President Trump understands is messaging and marketing, and isn't this website beautiful? The founder of Airbnb, through the work of the national design studio, put this website together, and it doesn't look like a government website (and trust me, I have spent lots of time on the Social Security, IRS, and other government websites). Great job Joe Gebbia!
Can I Use My Preferred Brokerage like Schwab, Fidelity, or Betterment?
Trump Accounts begin with the Treasury’s designated financial agent. At a later stage, parents or guardians will have the option to transfer the full account balance to a preferred brokerage firm via a trustee-to-trustee rollover.
Who Else Can Contribute?
Beyond family contributions, grandparents, friends, employers, and philanthropies can participate. In workplace plans, employer contributions up to certain limits may even be tax-favored. Perhaps be on the lookout for the potential for your employer to add this benefit to their employee benefit plans starting realistically in 2027 and beyond.
What This Means for Families
Trump Accounts represent a forward-looking mechanism to embed long-term investing habits in young Americans’ financial lives. The combination of a government seed contribution, tax-deferred growth, and broad market exposure sets the stage for meaningful compounding over decades. Families who take proactive steps early—especially by understanding contribution limits and rollover options—can play a pivotal role in building generational wealth.
As your financial professional, Whitaker-Myers Wealth Managers will continue to stay out in front of any news on Trump Accounts, and we will begin to integrate Trump Accounts into holistic planning conversations, comparing them with 529 plans, custodial accounts (UTMA), and retirement strategies to choose the most aligned path for your family's goals.
Trump Accounts — Jumpstarting the Next Generation’s Financial Future
January 1, 2026
John-Mark Young
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