Trump Accounts for Kids: What Every Parent Should Know
Whatever your politics, free money for your kids is worth paying attention to.
The Trump Account is one of the more interesting things to come out of Washington in a while. Created under the One Big Beautiful Bill Act last year, it’s essentially a starter IRA for children owned by the child, managed by a parent or guardian until they turn 18.
Here’s what matters.
Any child under 18 with a Social Security number is eligible. You can contribute up to $5,000 a year, and unlike a regular IRA, there’s no earned income requirement. The money goes into low-cost index funds, with fees capped at 0.10%. It stays invested until the child turns 18. Simple enough.
The headline feature is the $1,000 government contribution. US citizen children born between January 1, 2025, and December 31, 2028, get a one-time $1,000 seed deposit from the federal government. If your child was born before 2025, they miss that particular bonus, but you can still open an account for them.
Accounts open on July 4, 2026. You can register directly through the IRS online portal at trumpaccounts.gov whenever you’re ready.
Is it worth doing?
Generally, yes. A thousand dollars invested for 15 or 18 years in low-cost index funds isn’t going to retire anyone, but it’s a decent start, and it costs nothing. The bigger opportunity is what you add on top of it.
Unlike a 529, which is restricted to education expenses, there are no limitations on how the money can eventually be used which is exactly why the two can work well alongside each other.
The accounts are new, the rules are still bedding in, and not every family will be in the same position. But if you have children or grandchildren under 18, it’s worth at least understanding what’s on the table. A conversation now could make a meaningful difference down the line. If you’d like to explore how these changes might apply to your family, our team would be happy to talk it through with you.
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