Trump Accounts for Children Under Age 18

The Trump Accounts for Children program was officially launched on the 4th of July. If you did not set up accounts for your eligible children during tax season, you may set up an account by visiting the IRS website page on Trump Accounts and submitting IRS Form 4547.

What is a Trump Account?

A Trump Account is a special type of individual retirement account (IRA) established for a child under age 18 to jump start saving money.

Who is eligible?

A Trump Account may be opened for any child who has a valid Social Security number and will not reach age 18 before the end of the calendar year. Parents or legal guardians can open and manage accounts on behalf of their children. The parents or legal guardians will be able to use an app to see exactly which stocks their children own and how those stocks are performing.

Setting Up an Account

To set up an account for your eligible children, you must complete IRS Form 4547 in the app or through the official IRS website. Before you begin, you will need an ID.me account, your child’s Social Security number and your child’s date of birth and address.

Once the child’s Trump Account is active, anyone may contribute to a child’s Trump Account. Parents, family, and friends can add up to a combined total of $5,000 per year to an eligible child’s account.

Employers may contribute up to $2,500 per year, per employee, which counts toward the $5,000 annual limit. Other donors, including non-profit organizations as well as state and local governments, may also contribute to these accounts. 

According to the Trump Accounts website, your child’s funds will automatically be invested in American companies.

When can funds be used?

When the child turns 18, they may access their Trump Account funds without penalty for qualified expenses such as education or a first home purchase. Withdrawals may be subject to restrictions and would be taxed at ordinary income rates.

When the access period ends, the account will be treated as a traditional IRA and generally is subject to the same rules as other traditional IRAs.

Pilot Program Contribution Election for Newborns

For a child to qualify to receive the $1,000 Pilot Program Contribution to their Trump account:

• the child must have been born in 2025-2028
• must be a qualifying child of the individual opening the Trump account
• must be a U.S. citizen
• must have a valid Social Security number

The $1,000 contribution from the Treasury Department will be immediately invested in an index fund.

Ongoing Enhancements and Financial Education

The app will have ongoing enhancements and updates. One new feature of the app is a financial education program for families. Fifteen interactive financial education modules for parents and children are currently available. These modules introduce concepts such as saving, investing, compound growth, diversification, and the role of American capital markets in supporting businesses and jobs.

Trump Account Call Center

If you have questions about Trump Accounts, you may call the Trump Account call center at 866-USA-4547. You may also visit the IRS website or click here to get started.

As always, should you have questions on this or other matters affecting you or your business, please call 215.675.8364 or email us to speak with a CPA today.

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