If your child's birthdate is between January 1, 2025, and December 31, 2028, they may be eligible to receive a $1,000 government-funded contribution through a new Trump Account.
These accounts are designed to help families begin investing early for a child's future. Parents, grandparents, and other family members can also contribute to the account each year, subject to the annual contribution limits established by law.
Key Features
- Eligible children receive a $1,000 initial contribution from the federal government.
- Additional contributions can be made annually (up to the applicable annual limit).
- Investments are generally limited to low-cost, diversified mutual funds or ETFs.
- Earnings grow tax-deferred, allowing investments the opportunity to compound over time.
- Funds generally cannot be withdrawn before the child reaches age 18, helping encourage long-term investing.
- Once the child reaches adulthood, ownership and control of the account transfers to them, subject to the program's rules.
Starting early can make a meaningful difference. Even modest annual contributions, combined with years of tax-deferred growth, have the potential to create a valuable financial foundation for education, a first home, retirement savings, or other future goals.
If your family has welcomed a new child—or expects to in the coming years—it may be worth exploring whether a Trump Account fits into your long-term financial plan. Before opening an account, be sure to review the current eligibility requirements, contribution limits, investment options, and distribution rules.
For more information and to open your account, go to the IRS Website or the Trump Accounts website.
If you have questions about how a Trump Account could complement your family's broader financial strategy, we'd be happy to help you evaluate whether it's an appropriate addition to your long-term plan.
Your Financial Navigator,
Johannes