What is a Trump Account? About the New Federal Children’s Savings Account
Towards the end of 2025 we started hearing about the early workings of a corporate-sponsored, federal savings account geared for children under the age of 18. So is that really going to happen? What exactly is a “Trump Account” and why does it sound so much like the 529 Plans we’re accustomed to? Is it the same kind of savings plan? Who is eligible and how do you open one if you are? We break down all of the important details you’ll need to know ahead of the rollout of the Trump Accounts in July of 2026.
What is a Trump Account?
This will be a tax-advantaged savings account for those under the age of 18. Much like a retirement account or even a 529 Plan, Trump accounts will only be accessible without penalty after they have matured (upon the recipient reaching 18 years of age). Funds in these accounts are put into investments (often from companies owned by the program’s sponsors) to grow the savings until the fund matures. Trump Account will accept contributions from you, the child, or family and friends. It’s also possible for an employer to make contributions if any employers elect to do so. There are also provisions for charitable organizations and state governments to make contributions to these accounts if desired.
Contributions to these accounts are capped annually. Parents and other adults can invest up to $5000 in any given year. Employers maybe contribute up to $2500 a year – though this amount is counted within the $5000 aforementioned cap for adults and family. Contributions from governmental entities and charitable organizations, however, can be made without a limit. There are provisions for these numbers to adjust based on future inflation.
When are Trump Accounts Available?
The accounts are slated to debut on July 5, 2026.
Who Can Get a Trump Account?
Any America child under the age of 18 with a registered Social Security number is eligible. Parents/Guardians will need to provide personal information to be established as the “responsible party for the Trump Account.”
Am I Getting $1000 In the Account from the Government?
In some specific cases, yes. If any of your children were born between January 1, 2025, and December 31, 2028, their Trump account would be open with $1000 in seed funds provided by the US Treasury Department.
Children under the age of 10 who were not born during the target dates could qualify for a special one-time contribution of $250. This lower amount comes with some stipulations, however: recipients must reside in a zip code where the median household income is less than $150,000 to be eligible.
What Can the Money from a Trump Account Be Used For?
While it’s touted as a means to buy a new home or start a business, the funds from these accounts can be used for anything once they are made available to the recipient upon turning 18. This differs from the tried-and-true 529 Plan which is earmarked for education expenses.
How Can I Open a Trump Account for My Child?
An online registration page will be available in the coming months, with detailed information appearing on the Treasury’s official page for Trump accounts.
When filing taxes your 2025 taxes, you can also submit an Trump account election form along with your other filings to get registered before the program starts in July 2026.
I Don’t Want to Wait, How Can I Start Saving for My Child’s Future Right Now?
As Ohioans, we benefit from a reliable, tax-advantaged means of saving for education in the form of the 529 Plan. We’ve discussed these powerful savings vehicles on the blog before in great detail. If you’re looking to get started, our Financial Planning partners at Cetera are available to walk you through the process today!
Posted In: Saving
