Trump's IRA Account for Kids
President Trump signed the Working Families Tax Cuts to allow parents, guardians, and other authorized individuals to establish a new type of Individual Retirement Account (IRA) for their children called Trump Accounts.
https://www.trumpaccounts.gov/
1/24/20261 min read
Trump Account features:
Must be a U.S. Citizen with valid Social Security Number
Child born between Jan. 1, 2025 and Dec. 31, 2028 will get a $1000 startup in the account.
Trump Account operates as a custodial style structure.
Flexible Contribution: parents, guardians, and authorized person
Employers can contribute up to $2,500 to child of employee's account
5000 Annual Contribution Limit
No earned income to contribute into the account
Investment Restricted to Index Fund
No tax deductions/credits for contributions
Tax-deferred growth with taxed distribution
Trump Account won't affect the contribution limit of other tax-advantage retirement account such as IRAs or a 401K. For example, you can contribute $5000 to Trump Account plus $7500 Roth IRA if your child has earned income.
At 18, Trump Account will convert to a traditional IRA account
No withdrawal during growth periods (Age 1 to age 17)
Open the account by filing Form 4547 with tax return or using trumpaccounts.gov