Parents and grandparents are always looking for ways to set their kids up for long-term success. In 2026, a brand-new savings tool will arrive – one that could reshape how families think about building wealth for their children.
They’re called Trump Accounts, and they’re part of the recently passed One Big Beautiful Bill Act. Think of them as a hybrid between a trust fund, a college savings tool, and a retirement account – but with simple rules, powerful long-term growth potential, and a $1,000 government-funded kickstart for many newborns.
What Exactly Is a Trump Account?
A Trump Account is a special type of investment account created specifically for minors. It grows tax-deferred, just like a traditional IRA, but with rules tailored for children and teenagers.
Here’s the big idea:
- You open the account when your child is under 18
- Contributions can grow for decades
- Investments are simple, and low-fee, and broadly diversified
- Your child doesn’t need earned income for you to contribute
- Parents, grandparents, employers, and nonprofits can all chip in
- Trump Accounts allow up to $5,000 in yearly contributions during the growth period.
These accounts are designed to help families build long-term, generational wealth, starting earlier than ever before.
Who Can Open a Trump Account?
You can open a Trump Account for any eligible child who is under age 18 who has a Social Security Number. This means children born in earlier years also qualify – not just newborns.
Who Can Contribute?
The Treasury has created a special pilot program that deposits a one-time $1,000 contribution, which does not count towards the annual contribution limit, for eligible newborns:
- Born after December 31, 2024
- Before January 1, 2029
- Who meet the IRS eligibility rules
Beyond that pilot program, a wide circle of people and organizations can contribute during the growth period (birth–17 years):
- Parents
- Grandparents
- Family members
- Employers (contributions would not be taxable to the employee)
- Charities and nonprofits
- States or tribal governments
This is a unique feature – a large group of people, including organizations, can help build a child’s long-term nest egg. While contributions are not tax deductible to the contributor, they do create basis in the child’s account. Meaning they will not be taxed when withdrawn later.
Why Families Are Getting Excited
The magic of these accounts is in the timing.
A Trump Account starts when a child is young – meaning it could grow for 50, 60, even 70+ years. Even small contributions can snowball into life-changing amounts through long-term compounding.
That single $1,000 government-funded contribution for eligible newborns could turn into tens of thousands of dollars – without the family contributing a single extra penny. And if parents or grandparents add even modest amounts over time, the long-term impact grows exponentially.
A $5,000 contribution at birth could be worth over $150,000 by age 65 at modest growth rates. Add annual contributions, employer matches, or community gifts, and the numbers become even more powerful.
And because the investments are limited to broad, low-fee index funds, the account is designed to stay simple, transparent, and stable.
How Can the Money Be Used?
During childhood, the account is locked in and protected – no withdrawals allowed except in limited rollover situations.
After age 18, the account becomes a traditional IRA and can be used for:
- retirement
- first-time home purchase
- college costs
- emergency needs (following normal IRA rules)
This structure keeps the account safe during childhood while giving your child meaningful financial opportunities as an adult.
When Can You Open One?
The IRS expects the application process to open a Trump Account – and claim the $1,000 pilot contribution for those who qualify – to begin in early 2026, with an online portal and Form 4547 available to file either on its own or alongside your 2025 income tax return. If you want to be ready:
- Make sure your child has a Social Security Number
- Verify who will act as the “authorized individual” (parent, guardian, etc.)
- Start planning contributions or gifts for 2026 and beyond
Why This Matters for Your Family
Most parents want to give their children a strong financial start – but traditional tools can feel complicated or out of reach. A Trump Account keeps things simple:
- Low cost
- Long-term growth
- Easy investment options
- A chance for a $1,000 head start for many babies
- Contributions allowed even without earned income
- A structure that protects the savings until adulthood
This is a once-in-a-generation opportunity to create a financial foundation for your child that will grow with them for life.
Want help deciding if a Trump Account fits your family?
Give us a call – we’re happy to help you create the strongest possible financial start for the kids you love.