The New Trump Investment Accounts (And Why You Need One)
If you are looking for a powerful way to jumpstart your child’s financial future, you are in the right place. In this walkthrough, I’m taking you step-by-step through the process of opening and setting up a Trump investment account so you know exactly what to expect.
These accounts are a massive win for early investing, and the tool does an incredible job of showing you the real, long-term power of compound growth. Here is a quick breakdown of what makes these accounts so unique and why you should consider opening one for your kids.
The Core Benefits
Eligibility: These accounts are available for any U.S. citizen child under the age of 18.
Free Government Seed Money: If you have a child born during the tax years of 2025, 2026, 2027, or 2028, the government will provide a $1,000 seed contribution from the U.S. Treasury.
Still Open to Older Kids: If your child was born before 2025, don’t worry! You can still open and fully fund the account; you just won’t receive the government seed money.
No Earned Income Required: Historically, children needed to have actual earned income to contribute to a Roth or Traditional IRA. With these accounts, earned income is not required—parents can simply contribute on behalf of their children while still getting the benefit of tax deferral.
Flexible Group Contributions: Family members and even your employer can contribute to your child’s account. Plus, any money they contribute does not count as income for you.
Contribution Limits: There is a total contribution cap of $5,000 for the current year. Keep in mind that this $5,000 limit is a shared pool—so contributions from you, grandparents, and employers all draw against this same cap.
How the Money Grows (and How to Use It)
The funds in this account grow entirely tax-deferred. Any after-tax contributions become the account’s basis (very similar to a post-tax IRA contribution). Once your child turns 18, they take full legal custody of the account, and it converts into a traditional IRA. This means they can later take advantage of classic IRA perks, including penalty-free distributions for:
- A first-time home buyer purchase
- Qualified educational expenses
While it doesn’t replace a standard brokerage account or a 529 plan, it gives you a tax-deferred shelter and a level of flexibility that a standard brokerage account (where you’d be hit with capital gains tax) just can’t match.
Ultimately, this is one of the easiest ways to start saving early and watch compound growth do the heavy lifting.
Ready to set one up? Skip ahead to the step-by-step setup walkthrough in the video chapters below to see exactly how to navigate the signup, verify your identity with the IRS, and fund the account!
