Trump Accounts
The 2025 Tax Act included a new tax provision which took effect in 2026 called “Trump Accounts.” These accounts can be set up for qualifying individuals under the age of 18.
Once the "Trump Account" is set up, individuals and/or employers can contribute up to $5,000 per year per child. These contributions are not tax deductible, however the earnings in the account grow tax deferred.
Distributions before the child turns 18 are generally prohibited, with some exceptions.
Once the child turns 18 then traditional IRA taxation rules generally apply to the "Trump Account." (i.e. distributions are taxed as ordinary income and possibly subject to a 10% early withdrawal penalty if an exception is not applicable)
Qaulifying children born between January 1st, 2025 and December 31st, 2028 will receive a $1,000 contribution from the government once the account is approved.
For more information go to IRS.gov and search “Trump Accounts.”
Once the "Trump Account" is set up, individuals and/or employers can contribute up to $5,000 per year per child. These contributions are not tax deductible, however the earnings in the account grow tax deferred.
Distributions before the child turns 18 are generally prohibited, with some exceptions.
Once the child turns 18 then traditional IRA taxation rules generally apply to the "Trump Account." (i.e. distributions are taxed as ordinary income and possibly subject to a 10% early withdrawal penalty if an exception is not applicable)
Qaulifying children born between January 1st, 2025 and December 31st, 2028 will receive a $1,000 contribution from the government once the account is approved.
For more information go to IRS.gov and search “Trump Accounts.”