04/24/2026
We've received several inquiries about Trump Accounts so I thought I'd share some information.
Since the program went live in January (just enrollment, the true launch date is July 4, 2026), about 5 million children in the U.S. have been signed up, and 1.2 million are eligible for the $1,000 contribution from the government. Any child under 18 with a SSN can sign up, but the $1,000 contribution from the government is only available to children born between 2025 and 2028 (Source: CNBC).
These accounts will work like a Traditional IRA. Once the child turns 18, the account transitions into the child's name and follows the same rules as a Traditional IRA (distributions prior to age 59.5 are taxed as ordinary income along with a 10% penalty unless an exception applies). There are generally no withdrawals allowed from the account prior to age 18.
Is this the best type of account for a minor? Possibly. I would definitely open one if I had a child that would qualify for the $1,000 government contribution. But you may find a UTMA or 529 plan to be a better alternative, or complement to the Trump Account.
We're happy to discuss all options with you should you have questions or concerns.
