OBBB Trump Accounts

Trump accounts can be setup for children aged 17 and under where the child does not turn 18 by the end of the calendar year starting July 4, 2026. Children must have a vaild social security number and be a US citizen. The trump account converts to a traditional IRA at age 18. There are no income thresholds and parents, grandparents or friends can contribute money up to $5,000 a year.

If a child is born in 2025-2028 the government will contribute $1,000 as seed money. Any parent, guardian can create an account for an “eligible child” regardless of the guardian’s immigration status. The child must be a “qualifying child” of the individual opening a Trump account.

Employers can contribute $2,500 total for the year on behalf of “employee”. Companies are contributing money to the Trump Account and distributions may become available from these company funds to Trump Accounts based on zip code.

The Trump Account is not automatically setup by the IRS. You must setup the account on irs.gov website by a parent or guardian. The account does not have to be funded but does need to be setup. Trump accounts for children will be restricted to investments in ETF’s and Mutual Funds in US Companies. For more information go to trumpaccounts.gov to see if you can make these elections.