What Are the New Trump Accounts?
The new Trump Accounts are now available, offering families a new way to invest in a child's future through a tax-advantaged investment account.
Who?
Children under age 18 with a valid Social Security number are generally eligible to open a Trump Account. In addition, children born between January 1, 2025, and December 31, 2028 may qualify for a one-time $1,000 government contribution if the required election is made.
What?
A Trump Account is an investment account that allows families to contribute up to $5,000 per child each year. Contributions are made with after-tax dollars, and investment earnings grow tax-deferred, meaning you won't pay taxes on the earnings until funds are withdrawn, subject to the applicable distribution rules (Medical, Education, 1st Home Buyer). In the year a child turns 18 the Trump Accounts works similar to a Traditional IRA.
When?
If you have not yet filed your 2025 tax return, we can help you submit the required election to open the account as part of your tax preparation. If you have already filed, you're welcome to submit the election online at any time (see links below), or we can assist you when we prepare your 2026 tax return next year.
Why?
Opening an account early gives investments more time to grow through the power of compounding. For families with children born between 2025 and 2028, it's also an opportunity to receive the one-time $1,000 government seed contribution for eligible children.
How?
To learn more about Trump Accounts, visit the IRS information page:
To open an account or submit the required election online, visit:
If you have questions about eligibility or would like our assistance, please contact Summit Oak Advisors