The IRS has released its first round of guidance on the upcoming “Trump Accounts,” a new tax-advantaged savings program created under the One Big Beautiful Bill Act of 2025. These accounts—designed to give children a financial head start—aren’t available to open yet, but the rules are beginning to take shape. With contribution limits, investment restrictions, and several unique incentive programs already outlined, families, employers, and financial planners should pay close attention as implementation moves forward.
Here’s the latest on what these “Trump Accounts” are, who qualifies, and how to prepare now.
Starting after July 4th, 2026, you may begin contributing to a Trump Account for eligible children. Here are the rules as we currently know them:
Annual contribution. Deposit up to $5,000 per year for the benefit of a child under age 18. This will be indexed for inflation after 2027.
No withdrawals. The funds MUST stay in the account until January 1st of the year of the child’s 18th birthday. There are very few exceptions, but it includes disbursement of account funds in the event of the beneficiary’s (child’s) death.
The funds in the account must be invested using strict rules. You may not place funds in basic bank accounts. An eligible investment is generally a mutual fund or exchange traded fund (ETF) that tracks an index of primarily U.S. companies.
Only one account per beneficiary. Each child may only have one account. There’s also published priority on who can open the account. The order of priority is:
At age 18 the Trump Account ceases to exist. The funds are then to be rolled over or distributed. Distributions are treated similar to a traditional IRA.
The idea of the account is to help young people start their adult life with something of value so that the concept of the American Dream is still available to the next generation. To that end there are incentives that should not be missed:
As a new program, details of the Trump Account will continue to evolve, but given the anticipated popularity it is important to do the following right now:
Get program announcements. If interested in keeping informed, go to www.trumpaccounts.gov and sign up to receive email updates on the status of the program. This should tell you when applications for the accounts are open.
Sign up as soon as possible. The IRS notice says signing up for the account can be done using IRS Form 4547 or online at www.trumpaccounts.gov. You’ll want to do this as soon as they are made available.
Apply for the bonus deposits. You cannot do this yet, but when you can, treat it like buying tickets to a Taylor Swift concert. There will be separate applications to get these deposits. But also stay alert. There may be other philanthropists willing to help the next generation get a head start financially.
The Trump Account program is still evolving, but early IRS guidance makes one thing clear: families who prepare now will be first in line when accounts officially open in 2026. Stay informed, monitor IRS updates, and be ready to submit applications as soon as enrollment begins—especially if you hope to secure the limited bonus deposits tied to newborns, employer contributions, or philanthropic funding.
As always, Alloy Silverstein’s tax and advisory professionals are here to help you navigate the new rules, evaluate the best strategy for your family, and make sure you’re positioned to take full advantage of every benefit this program offers.
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