As of July 4, 2026, families have access to a new tax-advantaged savings vehicle for children known as a Trump Account. Designed to encourage long-term investing from an early age, these accounts allow contributions throughout childhood while offering tax-deferred investment growth until adulthood.
Rather than replacing existing savings tools, Trump Accounts can become one component of a broader family financial strategy. When combined with education savings plans and other investment vehicles, they may help parents and grandparents build wealth for the next generation while teaching valuable investing habits.
Who Can Open a Trump Account?
In general, children qualify if they have a valid Social Security number and are under age 18 at the end of the calendar year in which the account is established. A parent or legal guardian opens the account using IRS Form 4547. Certain benefits, including the government seed contribution, have additional eligibility requirements.1
Trump Account Contribution Limits
Parents, grandparents, relatives, friends, and employers may contribute up to $5,000 annually per child (indexed for inflation). Contributions count toward the federal annual gift tax exclusion. Children born between January 1, 2025, and December 31, 2028, may also qualify for a one-time $1,000 government seed contribution if eligibility requirements are met.2
Employer Contributions
Employers may contribute up to $2,500 annually for eligible employees’ children. These contributions are excluded from employee income, count toward the child’s annual limit, and may be divided among multiple children.
Charitable and Government Contributions
Certain charitable organizations and government entities may contribute on behalf of qualifying groups of children. These contributions are not subject to the $5,000 annual limit. Individual contributions are not tax-deductible.3
How Are Trump Accounts Invested?
Investments are limited to qualifying index mutual funds and ETFs, such as those tracking the S&P 500. Funds must remain unleveraged and carry annual expenses of no more than 0.10%.
Withdrawal Rules
Withdrawals before age 18 are generally prohibited except for limited circumstances, including transfers between custodians, certain ABLE account rollovers, and distributions upon the beneficiary’s death. Beginning the year the beneficiary turns 18, traditional IRA rules generally apply.4
How Trump Accounts Fit Within a Family Savings Strategy
Trump Accounts can complement—not replace—529 plans, custodial Roth IRAs, and UTMA/UGMA accounts. Many families may benefit from using multiple account types to pursue different long-term financial goals.
Final Thoughts
Trump Accounts represent another option for families looking to invest in a child’s future. While they are not a replacement for existing savings strategies, they may complement a comprehensive financial plan. An advisor at Hightower Signature Wealth can help evaluate how a Trump Account fits alongside education planning, retirement planning, and your family’s long-term wealth strategy.
[1] Dickler, J. 2026, June 29). IRS says Trump Account contributions will not trigger annual gift tax reporting requirements. CNBC.
[2] The White House. (2025, December 2). Landmark Dell gift supercharges Trump accounts for America’s kids.
[3] Council on Foundations. Trump Accounts Explainer. (2025, December 5).
[4] Adams, H. (2025, November 17). What to Know About Trump Accounts. Charles Schwab.
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