Trump Accounts Explained: A New Long‑Term Savings Tool for Kids

Keywords: Trump Accounts, Working Families Tax Cuts, child investment accounts

Trump Accounts are a new government‑supported investment account created to help families build long‑term savings for children.

What Is a Trump Account?

• Established for eligible children

• Cannot be funded before July 4, 2026

• Federal government contributes $1,000 once

• Annual contributions allowed up to $5,000

Employer Contributions

• Employers may contribute up to $2,500 per year

• Contributions are not taxable income to the employee

Investment Rules

Funds must be invested in approved:

• Mutual funds

• Exchange‑traded funds (ETFs)Tracking a U.S. stock index (such as the S&P 500)

Withdrawals & Tax Treatment

• No withdrawals until the year the child turns 18

• After that, the account is treated similarly to a traditional IRA

IRS Resources

• https://www.irs.gov/newsroom/treasury-irs-issue-guidance-on-trump-accounts-established-under-the-working-families-tax-cuts-notice-announces-upcoming-regulations

• https://www.irs.gov/trumpaccounts

• https://www.trumpaccounts.gov

These accounts are designed for long‑term growth, not short‑term spending.