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Trump Accounts for Kids Details
Aspect Details
Program Overview Trump Accounts are tax-advantaged savings accounts for children in the US, similar to IRAs, established under the One Big Beautiful Bill Act (OBBBA), with initial IRS guidance (Notice 2025-68) released in December 2025.
Eligibility for Account Available to any qualifying child under 18 at the end of the calendar year with a valid Social Security Number (SSN).
Eligibility for Government Deposit U.S. citizens born between January 1, 2025, and December 31, 2028, with a valid SSN.
Government Contribution One-time $1,000 deposit for eligible newborns; accounts are automatically created by the government upon election.
Additional Contributions Up to $5,000 per year (adjusted for inflation after 2027) from parents, family, employers (up to $2,500 tax-free), etc.; excludes government, charity, or rollover contributions; starts July 4, 2026.
Withdrawal Rules Generally no withdrawals before age 18, except for rollovers to another Trump Account or ABLE account (at 17), excess contribution removals, or upon death; after age 18, follows traditional IRA rules.
Tax Benefits Tax-deferred growth on earnings; contributions are after-tax (no deduction); employer contributions not taxable to employee; withdrawals after 18 taxed as ordinary income.
How to Claim/Open File IRS Form 4547 (Trump Account Election) with tax return or separately to establish account and request government contribution if eligible; Treasury sends activation information starting May 2026.
Funding Boost Includes a $6.25 billion donation from Michael and Susan Dell, providing an additional $250 deposit to the first 25 million eligible children age 10 and under in ZIP codes with median incomes below $150,000 who opt in.
Comparison: Trump Accounts vs. 529 College Savings Plans
Aspect Trump Accounts 529 College Savings Plans
Purpose General long-term savings for children, functioning like a non-deductible traditional IRA after age 18. Education-specific savings for qualified expenses like tuition, books, K-12, college, apprenticeships, and student loans.
Eligibility Available to U.S. children under 18 (government deposit for births 2025-2028); requires SSN. Open to anyone; account owner sets up for a beneficiary (can change to family members).
Government Contribution One-time $1,000 federal deposit for eligible newborns. None (some states offer small matching grants).
Annual Contributions Up to $5,000 per year (inflation-adjusted after 2027); employer up to $2,500 tax-free. No federal limit; state limits often >$300,000 lifetime; gift tax rules apply ($19,000 annual exclusion, 5-year front-loading up to $95,000).
Tax Advantages After-tax contributions; tax-deferred growth; no state deductions typically. After-tax contributions; tax-deferred growth; many states offer deductions/credits; tax-free withdrawals for qualified uses.
Withdrawal Rules No withdrawals before 18 (exceptions limited); after 18, taxed as ordinary income on earnings; 10% penalty before 59½ (exceptions for education, home buy, etc.). Tax-free for qualified education; 10% penalty + taxes on earnings for non-qualified; no age restrictions; can rollover unused to Roth IRA ($35,000 limit).
Usage Flexibility Broader after 18/25/30 (education, home, business, any); limited investments pre-18. Education-focused; beneficiary changes allowed; broader qualified expenses (K-12 up to $10,000-$20,000/year); diverse investment options.

Aspect	Details
Program Overview	Trump Accounts are tax-advantaged savings accounts for children in the US, similar to IRAs, established under the One Big Beautiful Bill Act (OBBBA), with initial IRS guidance (Notice 2025-68) released in December 2025.
Eligibility for Account	Available to any qualifying child under 18 at the end of the calendar year with a valid Social Security Number (SSN).
Eligibility for Government Deposit	U.S. citizens born between January 1, 2025, and December 31, 2028, with a valid SSN.
Government Contribution	One-time $1,000 deposit for eligible newborns; accounts are automatically created by the government upon election.
Additional Contributions	Up to $5,000 per year (adjusted for inflation after 2027) from parents, family, employers (up to $2,500 tax-free), etc.; excludes government, charity, or rollover contributions; starts July 4, 2026.
Withdrawal Rules	Generally no withdrawals before age 18, except for rollovers to another Trump Account or ABLE account (at 17), excess contribution removals, or upon death; after age 18, follows traditional IRA rules.
Tax Benefits	Tax-deferred growth on earnings; contributions are after-tax (no deduction); employer contributions not taxable to employee; withdrawals after 18 taxed as ordinary income.
How to Claim/Open	File IRS Form 4547 (Trump Account Election) with tax return or separately to establish account and request government contribution if eligible; Treasury sends activation information starting May 2026.
Funding Boost	Includes a $6.25 billion donation from Michael and Susan Dell, providing an additional $250 deposit to the first 25 million eligible children age 10 and under in ZIP codes with median incomes below $150,000 who opt in.

Aspect	Trump Accounts	529 College Savings Plans
Purpose	General long-term savings for children, functioning like a non-deductible traditional IRA after age 18.	Education-specific savings for qualified expenses like tuition, books, K-12, college, apprenticeships, and student loans.
Eligibility	Available to U.S. children under 18 (government deposit for births 2025-2028); requires SSN.	Open to anyone; account owner sets up for a beneficiary (can change to family members).
Government Contribution	One-time $1,000 federal deposit for eligible newborns.	None (some states offer small matching grants).
Annual Contributions	Up to $5,000 per year (inflation-adjusted after 2027); employer up to $2,500 tax-free.	No federal limit; state limits often >$300,000 lifetime; gift tax rules apply ($19,000 annual exclusion, 5-year front-loading up to $95,000).
Tax Advantages	After-tax contributions; tax-deferred growth; no state deductions typically.	After-tax contributions; tax-deferred growth; many states offer deductions/credits; tax-free withdrawals for qualified uses.
Withdrawal Rules	No withdrawals before 18 (exceptions limited); after 18, taxed as ordinary income on earnings; 10% penalty before 59½ (exceptions for education, home buy, etc.).	Tax-free for qualified education; 10% penalty + taxes on earnings for non-qualified; no age restrictions; can rollover unused to Roth IRA ($35,000 limit).
Usage Flexibility	Broader after 18/25/30 (education, home, business, any); limited investments pre-18.	Education-focused; beneficiary changes allowed; broader qualified expenses (K-12 up to $10,000-$20,000/year); diverse investment options.