Trump Accounts are new tax-advantaged retirement accounts for children under 18, created by the One Big Beautiful Bill Act. Contributions cannot begin until July 4, 2026.
Key Features
- Annual contribution cap of $5,000 per year across all sources
- No earned income required (unlike Roth IRAs)
- Employers can contribute up to $2,500 per year per employee's child
- Must be invested in broad-based U.S. equity index funds
- No withdrawals before the child turns 18
- Taxed as traditional IRA on withdrawal
$1,000 Pilot Program
The federal government will make a one-time $1,000 contribution for children born between January 1, 2025 and December 31, 2028, who are U.S. citizens and properly enrolled.
What to Do Now
- Familiarize yourself with the rules
- Track eligibility for the $1,000 pilot program
- Evaluate whether Trump Accounts fit your planning strategy
- For business owners: consider the employee benefit implications
