Trump Account Overview for Clients
What Is It?
A Trump Account is a new type of retirement savings account for children under age 18 with a valid Social Security number, created under legislation signed in July 2025.
Key Features
Eligibility: Any child under 18 with a Social Security number
Special Bonus: Children born between January 1, 2025 and December 31, 2028 who are U.S. citizens receive a one-time $1,000 contribution from the federal government (older children can still open accounts but don’t get this bonus)
Contribution Limits: Up to $5,000 annually
- Up to $2,500 from parents/family
- Up to $2,500 from employers
Investment Requirements: Funds must be invested in low-cost index funds tracking the S&P 500 or similar American equity indexes
Tax Treatment: Functions similarly to a Roth IRA—contributions are after-tax, but growth is tax-free
Timeline
For 2025 Tax Returns (filed in 2026):
- Make the election by filing Form 4547 with your 2025 tax return if you want to establish an account for an eligible child
Starting July 4, 2026:
- Contributions can begin
- Online application available at trumpaccounts.org
Who Should Consider This?
Parents or guardians who:
- Have children under 18 (especially newborns eligible for the $1,000 government contribution)
- Want to start tax-free retirement savings for their children
- Can afford to contribute after-tax dollars
Action Required Now
If you want to establish a Trump Account for your child, complete Form 4547 when filing your 2025 tax return or go to https://trumpaccounts.gov/ Actual contributions won’t start until July 2026.
Note: This is a new program. Additional guidance may be forthcoming from the IRS.
