Trump Accounts Are Here: What Families and Business Owners Need to Know
The U.S. Treasury has officially launched the Trump Accounts app and the new accounts are now up and running. If you have young children or grandchildren, or if you own a business and are thinking about your benefits package, this is worth a few minutes of your attention.
What a Trump Account Actually Is
Trump Accounts were created by the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025. In simple terms, a Trump Account is a tax-advantaged investment account for a child under age 18. It works much like a traditional IRA, but without the earned-income requirement that normally applies, and the money is invested in low-cost funds that track a U.S. stock index such as the S&P 500.
A few core rules to know about Trump Accounts:
- Contributions can total up to $5,000 per year until the year the child turns 18. This limit is scheduled to adjust for inflation in later years.
- Contributions are made with after-tax dollars. They are not tax-deductible, but the account grows tax-deferred.
- Funds generally stay invested until the child turns 18, at which point the account converts to a traditional IRA and follows standard IRA rules.
- Withdrawals of earnings are taxed as ordinary income, and early withdrawals may face an additional 10% tax unless an exception applies.
The $1,000 Federal Contribution for Eligible Children
Under a temporary pilot program, the federal government will deposit a one-time $1,000 into a Trump Account for each eligible child who is a U.S. citizen born between 2025 and 2028. That $1,000 does not count against the $5,000 annual contribution limit. These deposits began on July 4, 2026.
The Mechanics for Setting up a Trump Account
There are a couple of options for setting up a new Trump account; one is by using the Trump Accounts app and the other is by filing IRS Form 4547.
- The Trump Accounts app is now available on the Apple App Store and Google Play.
- File IRS Form 4547 along with your federal income tax return, Form 1040, or file it electronically through your IRS online account.
- As of July 4, 2026, accounts began accepting contributions from parents, family members, employers, and other eligible sources, and eligible children began receiving the $1,000 pilot contribution.
- Anyone who has not signed up can still elect to open an account at any time before the child turns 18 by filing Form 4547. There is no cost to open an account.
Protecting Yourself From Trump Account Scams
Treasury has flagged that scammers are likely to target families during the rollout. A few points worth passing along:
- Initial activation message will come only by email from no-reply@TrumpAccounts.Treasury.gov. Treasury and its authorized service providers will never ask you to disclose passwords, one-time verification codes or other sensitive account credentials by email, text messages or phone call.
- Always reach your account through the official app or by typing TrumpAccounts.gov directly into your browser, rather than following a link from a search result or a message.
- Customer support is handled only through the app or the official site. Be skeptical of any phone number you find through a web search.
What Business Owners Should Consider
Trump Accounts are not only a family matter. Employers can contribute up to $2,500 per year toward an employee’s (or their dependent’s) Trump Account, and that amount is not treated as taxable income to the employee. The employer contribution counts toward the child’s overall $5,000 annual limit.
If you are evaluating your benefits package, this is a low-cost, tax-efficient perk that may appeal to younger employees and working parents. It is worth weighing alongside your existing retirement and benefit offerings before you settle on a plan design.
How Trump Accounts Fit Into Your Broader Plan
Trump Accounts sit in a crowded field of options for saving on behalf of children, alongside 529 plans, UTMA accounts, and Roth IRAs. Each has different tax treatment, contribution rules, and trade-offs, and IRS guidance on Trump Accounts is still developing. The right choice depends on your goals, your income, and how the account fits into your broader tax and estate planning.
If you want to talk through whether a Trump Account makes sense for your family, or whether offering employer contributions fits your business, we here at Lanigan Ryan are happy to help you start the conversation to think it through.
