Trump Savings Accounts: What Parents Need to Know

Starting July 5, 2026, a new savings option called Trump Savings Accounts is scheduled to become available for children under age 18. These accounts are designed to help families start saving earlier and give children a financial head start as they enter adulthood.

Because this program is still new, there are some rules we understand clearly today and several open questions that still need IRS and Treasury guidance.

Below is a practical breakdown of what we know so far.

Who Is Eligible?

Trump Savings Accounts are available to all children under age 18 who have a valid Social Security number.

• Parents or legal guardians can open and manage the account on behalf of the child

• The account legally belongs to the child

• Once the child turns 18, control of the account transfers to them

How Do You Open a Trump Savings Account?

Parents will be able to open an account in one of two ways:

• When filing their tax return, by making an election for an eligible child

• Through an online portal, expected to launch in summer 2026 at trumpaccounts.gov

For most families, the online portal at trumpaccounts.gov is expected to be the easiest option.

Once the election is made, a participating financial institution will receive the funds and activate the account.

Contribution Rules

• Annual contribution limit: $5,000 per child

Contributions can come from:

• Parents or legal guardians

• Family members or friends

• Employers

• Nonprofits or local governments

Employers may contribute up to $2,500 to Trump Savings Accounts for their employees’ children as part of family-focused benefits. Employers are expected to receive a tax deduction for these contributions, while individual contributors generally do not.

It is still unclear whether employer contributions count toward the $5,000 annual limit or are allowed in addition to it. We are currently waiting for further IRS guidance on this point.

How Is the Money Invested?

Funds in a Trump Savings Account will be invested in a diversified portfolio of low-cost index funds, with a focus on long-term growth while managing risk.

• The account grows tax-deferred

• Investment decisions are handled within the program structure

• The emphasis is on long-term investing, not short-term trading

How and When Can the Money Be Used?

Funds can be accessed once the child turns 18.

Withdrawals may be used for qualified expenses, including:

• Higher education

• A first-time home purchase

• Starting a business

Withdrawals for qualified expenses are expected to be taxed at ordinary income tax rates, with no additional penalty. Taxes would generally apply to the investment gains, not the original contributions.

If funds are used for non-qualified purposes, additional taxes or penalties may apply, though full details have not yet been released.

What Happens at Age 18?

When the child turns 18:

• Control of the account transfers to the child

• Parents or guardians no longer manage the funds

• The child decides how and when to use the money, within program rules

Because of this transition, financial education and guidance before age 18 will be especially important.

Free $1,000 for Certain Children

One of the most notable features of the program is an automatic government contribution.

• Children born between 2025 and 2028 automatically qualify for a $1,000 contribution

For families having children now or in the coming years, it may make sense to open the account at a minimum to capture this free $1,000 and allow it to compound over time.

Even without additional contributions, long-term growth could make that initial deposit meaningful.

What We Still Don’t Know

Because this is a new program, several important questions remain unanswered:

• Can Trump Savings Accounts be converted to a Roth account at age 18?

• Will income limits or phaseouts apply in the future?

• How strictly will qualified expenses be defined?

• What level of investment flexibility will exist over time?

These details are expected to be clarified through future IRS and Treasury guidance.

For the most up-to-date information, families should continue checking trumpaccounts.gov as new rules are released.

Should You Use a Trump Savings Account?

The answer depends on your broader financial plan.

For now:

• If your child qualifies for the free $1,000, opening the account likely makes sense

• For additional contributions, it’s important to compare Trump Savings

Accounts to other options such as 529 plans, custodial accounts, and Roth strategies (when applicable)

This does not need to be an all-or-nothing decision. Many families may use Trump Savings Accounts alongside other planning tools.

Final Thoughts

Trump Savings Accounts are designed to encourage early saving and long-term investing for children. While the concept is straightforward, the details matter—and some of those details are still evolving.

If you have young children or are planning to in the coming years, this is a program worth watching closely. Capturing the free contribution and understanding how it fits into your overall financial strategy could make a meaningful difference over time.

As more guidance becomes available, families should revisit how Trump Savings Accounts compare to other education and wealth-building strategies to determine what makes the most sense for their situation.

- Steve Balch, CFP®

---

When You’re Ready to Take the Next Step, Here’s How I Can Help You:

Work with me.

If you’re a high-income earner or retiree and want to learn how we help people like you retire confidently and take control of your financial life, click here to schedule a call with me.

Ask me a financial question.

If there’s something you’ve been wondering about financially - taxes, investments, retirement, or anything else - send me a message on LinkedIn. I’m happy to discuss and help you find clarity.

Download my free eBook — How to Reduce Your Lifetime Tax Bill.

This guide is filled with actionable tax-planning strategies to help high-income earners and retirees keep more of what they’ve worked hard for. You’ll learn practical ways to minimize taxes, optimize withdrawals, and build a smarter, more efficient retirement plan. Download here.

---

Frequently Asked Questions About Trump Savings Accounts

What is a Trump Savings Account?

A Trump Savings Account is a new government-backed savings account designed for children under age 18. The account allows contributions to grow tax deferred and can be used starting at age 18 for certain qualified expenses.

When do Trump Savings Accounts start?

Trump Savings Accounts are scheduled to begin on July 5, 2026.

Who is eligible for a Trump Savings Account?

Any child under age 18 with a valid Social Security number is eligible. Parents or legal guardians can open and manage the account on the child’s behalf.

How do I open a Trump Savings Account?

Parents can open an account:

• When filing their 2025 tax return, or

• Through an online portal expected to launch in summer 2026 at trumpaccounts.gov

Once opened, a participating financial institution will activate and manage the account.

How much can be contributed each year?

Up to $5,000 per child per year can be contributed.

Who can contribute to a Trump Savings Account?

Contributions can be made by:

• Parents or legal guardians

• Family and friends

• Employers

• Nonprofits or local governments

Employer and organizational contributions are allowed under the program.

Are contributions tax-deductible?

Based on current guidance, contributions are not expected to be tax-deductible to the contributor. Final tax treatment may be clarified further as additional rules are released.

How is the money invested?

Funds are invested in a diversified portfolio of low-cost index funds designed for long-term growth while managing risk. The investments grow tax-deferred.

When can the money be used?

Funds can be accessed once the child turns 18.

What can the money be used for?

Qualified uses include:

• Higher education

• A first-time home purchase

• Starting a business

Withdrawals for qualified expenses are taxed at ordinary income tax rates with no additional penalty.

What happens if the money is used for non-qualified expenses?

Rules around non-qualified withdrawals have not been fully detailed yet. Additional taxes or restrictions may apply.

Who controls the account when the child turns 18?

Once the child turns 18, control of the account transfers to them. Parents will no longer manage the funds.

Can the account be converted to a Roth account later?

At this time, it is unclear whether Trump Savings Accounts can be converted to a Roth account when the child turns 18. Future guidance is expected.

Is there a free government contribution?

Yes. Children born between 2025 and 2028 automatically qualify for a $1,000 contribution, making it worthwhile for many families to open an account even if they don’t plan to add additional funds.

Should Trump Savings Accounts replace 529 plans or other savings options?

Not necessarily. Trump Savings Accounts may be used alongside 529 plans, custodial accounts, and other savings strategies. The best choice depends on your family’s goals and tax situation.

Where can I get updates?

For the most current information, families should monitor trumpaccounts.gov as additional rules and guidance are released.