As Trump Accounts prepare to launch on July 4, 2026, now is a great time to get the process started for your child. These new tax-advantaged accounts were created under the One Big Beautiful Bill Act and offer families a powerful new long-term savings tool.
What Is a Trump Account?
A Trump Account is a federally created, custodial savings account held in your child's name, functioning similarly to a Traditional IRA. A parent or guardian serves as custodian until the child turns 18.
How to Open One
You have two options:
File IRS Form 4547 with your taxes, or
Register online at trumpaccounts.gov
Accounts go live July 4, 2026 — get your information in early. The Treasury Department will set up the initial account, with the option to roll it over to an approved institution (BNY Mellon and Robinhood are the designated custodians) after launch.
The $1,000 Federal Seed
Children born between January 1, 2025, and December 31, 2028, receive an automatic $1,000 contribution from the U.S. Treasury — no action required beyond opening the account. This does not count toward the annual contribution limit.
Contribution Rules
Annual limit: $5,000 per child (all sources combined, indexed for inflation)
Who can contribute: Parents, grandparents, other family members, employers, and qualifying charities
Contributions stop once the child turns 18.
Employer benefit: Up to $2,500 per employee per year; counts toward the $5,000 limit. If you have multiple children, that $2,500 is split among them. Because these are pre-tax payroll deductions, the funds will be taxable upon withdrawal.
Note: Most employers won't offer this benefit until the 2027 open enrollment season, so parents and family will likely be the primary contributors at first.
Investments & Withdrawals
Funds must be invested in broad U.S. equity index funds or ETFs (such as S&P 500 trackers) with expense ratios capped at 0.10%. No individual stocks, crypto, or sector funds are permitted while the child is a minor.
Withdrawals are not allowed before age 18. On January 1 of the year the child turns 18, the account automatically converts to a Traditional IRA, and standard IRA rules apply — including taxation on withdrawals and potential early withdrawal penalties before age 59½.
Bottom Line
Trump Accounts are a simple, low-cost way to give your child a head start. The government seeds it with $1,000, contributions from family and employers can grow it further, and it converts to a retirement account when your child becomes an adult. Head to trumpaccounts.gov to get started. Reach out to your local SmartVestor Pro today if you have any questions!
Get a Head Start: How to Open a Trump Account for Your Child
June 11, 2026
Mica Dauch
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