Everything You Need to Know About Trump Accounts
As of July 4th, 2026 you can officially open and fund Trump accounts for your children. Here is what you need to know:
If you had a child in 2025 or early 2026, you are now eligible to receive your $1,000 deposit from the government for that child. This will continue for babies born through 2028. If your child qualifies, please get this set up.
You can start the process at https://trumpaccounts.gov/ . They have a Trump account app that you can download and it is simple to use.
If you had a child in 2025, you likely already started this process by filling out IRS form 4547 when you filed your taxes. You need this form to be able to claim the $1,000 if your child is eligible. So you will need to fill one out if you have not already done so. You can also find more information on the IRS website: https://www.irs.gov/trumpaccounts
If you have other children under 10, they may be eligible for $250 to be deposited into their account. This portion was funded by a private donation, so eligibility is limited to certain zip codes and how much of the donated funds are still unclaimed. My understanding is that this $250 is only for children who are too old to claim the larger deposit. You should be able to claim your older children’s deposits the same way as the $1,000 deposit listed above.
Beyond some of the “free” money, you or your family can deposit money into a Trump account for your minor children. The limit is $5,000 per year for each child. So one family member could deposit $5,000 for your child, or 50 family members/friends could each deposit $100. Some employers have said they will fund these accounts. Company contributions will count towards that $5,000 aggregate limit.
Depositing a little bit of money for a young child can have dramatic effects later on after compound interest has had a chance to build for 50-60 years. It could be a good use of some Christmas and birthday money!
The money can be invested(make sure this happens!) and will grow tax-deferred. Meaning the growth will be taxed when your child starts taking the money out to use in the future. At 18, the account transitions to an account similar to a Traditional IRA, per the IRS website. It says it will have similar rules. If it has similar rules, your child may be able to convert some or all of the balance to a Roth IRA when they are in their 20s. It’s unclear to me if the IRS will allow it. That’s a very cool opportunity if it is allowed.
The Trump account is unique and has some cool potential. It has its place for long-term investing for your child. However, I don’t think it is quite as good for education savings. As far as I can tell, a 529 account is still superior if you want to save specifically for education. Each account does have its pros and cons.
Please reach out if you would like to discuss this further.