Is a Trump Account Right for Your Child?

You might have noticed that the Trump name is getting plastered on quite a few things lately. If you have young children, one that might be of interest is the Trump Account. Trump Accounts were established under the One Big Beautiful Bill Act (OBBBA) and are essentially starter retirement accounts for kids. While more details regarding logistics and funding of the Trump Accounts are anticipated, here’s what we know.

A Trump Account can be opened for the benefit of any U.S. citizen under the age of 18 with a Social Security number. Each child is allowed only one funded account. During the “growth period” which runs from inception until the start of the year that the child reaches age 18, distributions are generally not allowed. After that, the account is treated similarly to a traditional IRA.

The maximum annual Trump Account funding amount, from all sources, is $5,000 per child. For children born between January 1, 2025 and December 31, 2028, the Treasury will make a $1,000 pre-tax contribution to a Trump Account.¹ On April 15 at the CNBC Invest in America Forum, Treasury Secretary Scott Bessent shared that approximately 5 million Trump Accounts had been requested, and 1.2 million of those were eligible to receive the $1,000 contribution from the Treasury.²

You might be wondering if there are other ways Trump Accounts will be funded, and the answer is yes. As of April 28, 2026, Americans for Tax Reform logged 58 entities including employers, charities and governments that plan to also offer Trump Account contributions.³ For example, the state of Oklahoma will offer a $250 contribution for Oklahoma children who are eligible for the Treasury contribution.⁴ For a charitable example, the Dell Foundation has pledged $6.25 million to make $250 contributions to accounts for children who are under age 11, live in zip codes with median income below $150,000, and who are not eligible for the Treasury contribution.⁵ Additionally, many employers are planning to offer contributions to Trump Accounts as a new employee benefit. Annual employer contributions will be limited to $2,500 per employee.

Parents and guardians can also contribute toward the maximum funding amount of $5,000 per year, however, family contributions are not deductible from income, so there may be better options depending on your specific situation. That said, taking advantage of available government, charitable, and employer contributions appears to be worth the effort to open an account. That effort starts by filing Form 4547 with your income tax return, or through the tool available at www.trumpaccounts.gov. Accounts are expected to be available by July 5, 2026.

For now, the Treasury will be using BNY Mellon to administer the pilot program. A White House release dated December 2, 2025 indicates that down the road, "parents or guardians will be able to transfer the full balance of a Trump Account to their preferred brokerage firm through a simple trustee-to-trustee rollover.”⁶ The same White House release also indicates that investment options are going to be limited to broad U.S. equity index funds that track the overall U.S. Stock Market, such as the S&P 500.

As with any financial decision, you should consult with your financial advisor to see if opening and funding a Trump Account is right for your child.

Meet Victoria Henry, CFP®

Read the November 2026 Financial Planning Focus:

• "Divided on Dividends" by Ryan Streilein, CFA
• "From Fear to Freedom: Mastering Your Finances in Retirement" by Laura Nash, CFP®
• "Something Old, New, Borrowed, Blue and…." by Laurie Kramer, CFP® and Kristan Anderson, CEBS®, CFP®

Sources

¹https://www.trumpaccounts.gov/

²https://www.cnbc.com/2026/04/15/cnbc-transcript-us-treasury-secretary-scott-bessent-spoke-with-cnbcs-sara-eisen-at-cnbcs-invest-in-america-forum-in-washington-dc-today-wednesday-april-15.html

³https://atr.org/trumpaccounts/

⁴https://oklahoma.gov/governor/newsroom/newsroom/2026/building-the-american-dream-governor-stitt-signs-oklahoma-dream-accounts-bill.html

⁵https://www.ap.org/news-highlights/spotlights/2025/michael-and-susan-dell-donate-6-25-billion-to-encourage-families-to-claim-trump-accounts/

⁶https://www.whitehouse.gov/releases/2025/12/landmark-dell-gift-supercharges-trump-accounts-for-americas-kids/

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