Trump Accounts: What You Should Know
Recent legislation created a new investment account for children known as a Trump Account. Beginning July 4, 2026, eligible children under age 18 may have a Trump Account established on their behalf. The account is designed to encourage long-term investing and operates similarly to a custodial-style Traditional IRA while the child is a minor. Once the child reaches age 18, the account transitions to Traditional IRA rules.
Key Highlights:
- Government-funded seed contribution: Eligible children born between January 1, 2025, and December 31, 2028 may receive a one-time $1,000 government contribution.
- No earned income requirement: Unlike traditional IRAs, children do not need earned income to benefit from a Trump Account.
- Annual contributions up to $5,000: Family members and other adults can contribute up to $5,000 per child annually (subject to program rules).
While additional regulatory guidance is still expected, Trump Accounts may provide families and grandparents with another way to save and invest for the next generation. If you have children or grandchildren and would like to discuss whether this new account type may fit into your family’s financial plan, please reach out to our team.
Questions about any of the topics discussed in this newsletter?
Whether you’d like to review your financial plan, discuss opportunities for your children or grandchildren, or simply have a financial question, we’re always happy to help.
