Ref: One Big Beautiful Bill Act

Trump accounts were introduced with the OBBBA. Contributions to these accounts can begin July 4, 2026.

Overall: These are designed to be A RETIREMENT ACCOUNT for the child, started at an early age. If you’re saving for college education we would recommend a 529 account as a better alternative.

Who can open one: The guardian, parent or grandparent (in that order) for any child under age 18. The child must have an active Social Security Number.

Annual contribution: Maximum of $5,000 from parents, grandparents or an employer per year.

Children born in 2025 – 2028: The government will jump start the account with a gift of $1,000 “seed money.”

How to open: Go to Trumpaccounts.gov and complete the simple application for any child under age 18. For children born from 2025 – 2028, be sure to elect to have the government fund the account with the seed money. The government will then send you detailed information on the account.

Other information: Like an IRA, the account grows tax deferred until taken out (when earnings are taxed). The contributions are NOT TAX DEDUCTIBLE. Investment types are highly restricted to select index funds until the December 31 of the year when the child turns 17. Long term, these act a lot like a non-deductible traditional IRA account.

ANNUAL FUNDING DEADLINE: The funding deadline is December 31 each year (unlike IRAs which have until April 15 of the following year).