A new federally created savings vehicle, the Trump Account, is giving families a fresh option for building long-term wealth for their children. Modeled on a traditional IRA under IRC §530A, these accounts offer unique advantages and important limitations to consider.
Trump Accounts are created under the One Big Beautiful Bill Act that was enacted on July,4, 2025. Any U.S. child under age 18 with a valid Social Security number is eligible. The account is held in the child’s name, with a parent or guardian serving as custodian until the child reaches age 18.
To open a Trump Account and claim the $1,000 seed deposit, file IRS Form 4547 with your 2025 tax return or register online at trumpaccounts.gov. The IRS began sending account activation information in May 2026, with accounts going live on July 5, 2026.
If multiple individuals could open an account for the same child, the IRS follows a priority order:
Once someone makes the election, no duplicate account can be opened for that child.
Trump Accounts offer several features that distinguish them from other savings vehicles:
Under a scenario of average U.S. stock market returns, the White House Council of Economic Advisers estimates a Trump Account balance for a baby born in 2026 could reach $303,800 by age 18 and $1,091,900 by age 28 if maximum contributions are made — or $5,800 by age 18 and $18,100 by age 28 with no additional contributions beyond the government seed.
Trump Accounts carry meaningful restrictions that clients should weigh carefully:
For children born between 2025 and 2028, opening a Trump Account is generally a strong opportunity to capture the $1,000 government contribution at no cost. The free seed money alone makes enrollment worthwhile for eligible families.
For other children, the decision depends on balancing:
Trump Accounts are most effective as a complement to, not a replacement for, §529 plans and Roth IRAs.
If you are evaluating how a Trump Account fits into your overall family savings strategy, our Private Client Services Team can help assess the optimal approach based on your specific situation, including coordination with 529 plans, Roth IRAs and estate planning considerations.
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