07/16/2026
Financial Headlines That Actually Matter
Trump Accounts:
Federal legislation created in 2025 became available on July 4th 2026, known as the “Trump accounts”. Trump accounts are a federally created traditional IRA account for children under the age of 18 .
A Little More Detail:
These new federally created IRA accounts allow families to start a retirement fund for their children from the moment they are born up until they are 17. In addition to this, the investment options are limited to to low-cost index funds and and ETF’s, which allow for transparent pricing and reduced long-term fee drag. Children born between 2025 and 2028 may qualify for a $1,000 federally funded seed contribution to the account upon creation.
Why It Matters:
It gives families a way to start retirement savings for their children from birth, even if the child has no earned income. By establishing an IRA early in life, families can build financial habits, take advantage of decades of potential tax‑deferred growth, and create a foundation for future financial stability as the child becomes an adult.
Trump Accounts offer tax deferred growth on earnings and provide tax free withdrawals when distributions are qualified. Contributions may include after tax family contributions, pre tax employer contributions, and a one time $1,000 federal contribution for eligible children born between 2025 and 2028. Parents or legal guardians can claim the $1,000 Treasury Department contribution by filing IRS Form 4547 or applying through the Trump Accounts Portal. (https://trumpaccounts.gov/) Withdrawals prior to age 59½ may result in a 10% IRS penalty tax, in addition to current income tax, and may be restricted until the child reaches age 18. Annual contribution limits and other restrictions apply. Some Trump Account rules and regulations are still forthcoming from the U.S. Treasury and IRS. Clients should consult with a qualified tax advisor or financial professional before making any decisions.
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