June 2026 | Trump Accounts: Investing & Saving for Your Children

Trump Accounts were introduced in 2025 through the issuance of the One Big Beautiful Bill and are intended to give the next generation a head start on savings. These custodial-style IRA investment accounts became available as of July 4th, 2026, and will initially be administered by the Treasury.

Trump Accounts are for children who have not turned 18 years of age before the end of the calendar year in which the election is made. Each child must have a valid social security number. Each child will be the legal owner of their account while a parent, guardian, or authorized adult manages it up until the child turns 18 years of age.

Key Features

Government Contribution – For children born between January 1^st, 2025, and December 31^st, 2028, they are eligible for a one-time $1,000 deposit from the U.S. Treasury when a Trump Account gets opened on their behalf.

Contribution Limits – Parents, guardians, family members, and friends can contribute up to $5,000 per child per year. Employers can contribute up to $2,500 per employee, per year. Contributions from government or charitable organizations do not count toward these limits.

Investment Options – Contributions must be invested in low-cost index mutual funds or ETFs, with an expense cap of 0.10% and no leverage.

Withdrawal rules – No withdrawals are permissible before the age of 18. After that, traditional IRA rules apply, including taxation on distributions and a 10% early withdrawal penalty before the age 59 ½. NOTE: Exceptions are made for qualified education expenses or a first home purchase up to $10,000.

What’s the purpose and benefits of all this?

Trump Accounts are designed to encourage early saving and investing for a child’s future, giving a structured, tax advantageous way to grow assets over time. They are very similar to other savings options like a 529 plan, custodial Roth IRAs, etc., with unique rules and government support.

How do I open a Trump Account?

The simplest way is through the official portal: https://trumpaccounts.gov/  Parents and legal guardians can create the account online, link it to the child’s Social Security number, and manage everything from contributions to investment choices in one place. There is also an app available for download called “Trump Accounts.”

For more information, please contact one of the experienced tax professionals at Bormel, Grice & Huyett, P.A. at 301-953-3259 to make sure your business is protected and compliant.