Trump Accounts: A New Way to Save for a Child’s Future
Recorded on June 25, 2026
Parents and grandparents are often looking for ways to help children and grandchildren build strong financial foundations. Beginning July 4, 2026, a new type of account known as a Trump Account will become available, offering a tax-advantaged way to save and invest for a child’s future. While many details are still being finalized, understanding the basic structure can help families determine whether these accounts may play a role in their long-term planning.
What Are Trump Accounts?
Trump Accounts are custodial, traditional IRA-style accounts for minors. They were created by the One Big Beautiful Bill Act, signed into law on July 4, 2025, and are scheduled to take effect on July 4, 2026.
A child under the age of 18 who has a Social Security number is eligible for a Trump Account. While the child is the owner and beneficiary of the account, an adult, typically a parent or guardian, serves as the custodian until the child reaches age 18.
Trump Accounts may only be established through the U.S. Department of the Treasury. After July 4, 2026, any adult may contribute to a child’s account, subject to an annual contribution limit of $5,000 from all contributors combined. Contributions are made with after-tax dollars, and unlike traditional IRAs, the child does not need to have earned income for others to contribute to the account.
One notable feature of the program is that the U.S. government will contribute $1,000 to a Trump Account for eligible children born between 2025 and 2028. In addition, employers and charitable organizations may be permitted to make contributions to a child’s account.
Trump Accounts are expected to offer a limited selection of mutual funds and exchange-traded funds (ETFs). The intent is to encourage long-term investing through simple, broadly diversified, and low-cost investment options.
To support that long-term focus, distributions generally will not be permitted before January 1 of the year the child turns 18. At that point, the child gains full control of the account and it converts to a traditional IRA, where it would then be subject to the rules governing traditional IRAs.
While this outlines the general framework of Trump Accounts, additional guidance and regulations are expected which will provide greater clarity regarding account administration, investment options, distributions, and tax treatment.
As with any new savings vehicle, it is important to understand how Trump Accounts may fit within a family’s broader financial goals. FineMark’s trust and investment professionals are available to help clients evaluate planning opportunities and stay informed as additional guidance becomes available.
