Trump Accounts: What Are They and How Can Families Use Them?
Build long term savings for your family with a Trump Account.
By Noel Roach, AIF®
Trump Accounts are new tax-advantaged investment accounts for children under 18 designed to help families build long-term savings. Parents or guardians manage the account until the child becomes an adult, and funds are invested in a low-cost U.S. stock index fund to allow long-term growth.
Families can contribute up to $5,000 per year, and the investments grow tax-deferred, meaning taxes aren’t paid until funds are withdrawn. The goal is to help children build assets early for things like education, starting a business, or buying a first home.
Who Qualifies for the $1,000 Government Contribution?
Some children may receive a $1,000 government seed deposit when their account is opened.
To qualify, the child must:
Be born between January 1, 2025 and December 31, 2028
Be a U.S. citizen
Have a valid Social Security number
Have a Trump Account opened by a parent or guardian
Children born outside of those years can still open an account, but they won’t receive the initial $1,000 deposit.
Why Use a Trump Account Instead of a 529 or UTMA?
Each account type serves a different purpose.
Compared to a 529 Plan
529 plans are designed specifically for education expenses.
Trump Accounts offer more flexibility for future uses like starting a business or buying a home.
Compared to UTMA Accounts
UTMA accounts are taxable custodial investment accounts.
Trump Accounts allow tax-deferred growth, which can improve long-term compounding.
For many families, the best strategy is using multiple accounts together depending on their goals.
How to Maximize a Trump Account
Start early so compounding has more time to work.
Contribute consistently each year.
Encourage family contributions from grandparents or relatives.
Even modest annual contributions can grow substantially over 18 years.
Next Steps
If you're considering a Trump Account:
Confirm your child’s eligibility for the $1,000 seed contribution. Children born between January 1, 2025 and December 31, 2028 may qualify if they are U.S. citizens with a valid Social Security number.
Let us know you want to elect the account during tax filing. We can help you file IRS Form 4547 with your tax return to elect and establish the Trump Account with the IRS. Or Visit https://trumpaccounts.gov/, download the app and submit the form in the Trump Accounts App.
Plan your contribution strategy. Families can contribute up to $5,000 per year, and starting early can significantly increase long-term growth.
Coordinate the account with your broader financial strategy, including options like 529 plans or custodial investment accounts, to align with goals such as education, homeownership, or entrepreneurship.
Our team can help handle the account setup and provide strategic tax and wealth planning to ensure the account fits into your overall financial plan. Proper coordination can help maximize tax advantages while building long-term wealth for your child. Call 913-827-0950 or set an appointment for a no-risk conversation.