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New Trump Savings Accounts Thumbnail

New Trump Savings Accounts

Investment

Trump accounts function as custodial traditional IRAs for children under age 18. The child owns the account but administered by an adult. The following summarizes key details regarding the Trump savings accounts established under OBBA, along with outstanding questions that remain.

Accounts will be available beginning July 4, 2026, for children born between January 1, 2025, and December 31, 2028. The Treasury Department will initially establish the accounts, with potential rollovers to financial institutions available after launch.

 Contributions

  • Up to $5,000 may be contributed annually by individuals, employers, or charities until the year of the child’s 17th birthday, with inflation adjustments beginning in 2028.
  • Of this amount, up to $2,500 can be contributed by an employer (tax free to the employee).
  • The federal government will provide a one‑time $1,000 tax free contribution, which does not count toward the annual limit.

Additional Features

  • Investment options will be restricted.
  • No withdrawals are allowed before age 18. The goal is for the child to learn about savings and allow the money to grow. After that, traditional IRA rules apply.
  • As of January 29, 2026, more than one million people have enrolled, and over 25 million families may be eligible according to the Treasury Department.

Unresolved Questions

  • The IRS is expected to issue an official “Notice” with specific guidance for people who are ready to open an account. The IRS has not committed to a release date. 
  •  The IRS has provided some initial guidance in Notice 2025-68. The Notice gives basic instructions, including that an additional form (Form 4547) would be filed with your federal tax return.
  •  The accounts will follow traditional IRA required minimum distribution rules and may be converted to a Roth IRA, though conversion details are still pending.

Additional Considerations

Trump accounts may not suit every family’s financial situation, but they can offer meaningful long‑term benefits. Several employers and organizations are preparing to match government contributions, potentially increasing the value for eligible children.

For tax‑related questions or concerns about limited IRS guidance, consult a qualified tax, legal, or accounting professional.

We are available to help you evaluate how a Trump account could support your family’s broader financial strategy, including planning for future education expenses.

 

atr.org, January 29, 2026. “Trump Accounts: List of Companies and Individuals Providing Contributions for Children”

Fidelity.com, January 9, 2026. “Trump Accounts: A new way to save for kids”

FoxBusiness.com, January 29, 2026. “Trump Accounts hit 1 million sign-ups after Nicki Minaj White House summit appearance, Bessent says”