A Trump Account is a tax-favored savings account for children under the age of 18. It works similarly to a retirement account but has special rules during what’s called the “growth period,” which lasts until the child reaches adulthood. During this time, contributions grow tax-deferred, and withdrawals are generally not permitted, except in a few limited exceptions. After the growth period ends, the account follows the same rules as a traditional individual retirement account, or IRA, including penalties for early withdrawals unless certain exceptions apply.
Contributions to Trump Accounts can begin on July 4, 2026. Anyone can contribute, including parents, grandparents, employers and even the child themselves. The annual contribution limit is $5,000, and this limit may increase after 2027 to account for inflation. Children born between 2025 and 2028 may also qualify for a $1,000 federal contribution through a pilot program, which is a great way to jump-start savings. Funds in the account must be invested in low-cost index funds approved by the IRS. These investments must not use leverage and have very low fees.
The U.S. Department of the Treasury has launched the official mobile app for Trump Accounts, marking the next phase in the rollout of the new tax-advantaged savings program for children.
© 2026 Zywave, Inc. All rights reserved.
