Open a Trump account for each child
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Trump accounts are a new kind of tax-deferred investment account for children under 18, created by the 2025 tax law and open since July 2026. Family can contribute up to $5,000 per child each year, and the money grows without tax until the child is an adult.
Children born from 2025 through 2028 also get a one-time $1,000 deposit from the Treasury, and employers can add up to $2,500 per employee each year tax-free, which matters if your company employs your children.
How it works
A new tax-deferred investment account for children under 18, open since July 2026. Family can put in up to $5,000 per child a year, and an employer can add up to $2,500 per employee tax-free. Children born 2025 through 2028 get a $1,000 deposit from the Treasury.
What makes it hold up
- The child’s Social Security number and the election to open it
- Contributions by source each year
- For your company’s contribution, a written plan
Risks
Low. Money is locked until the child turns 18, then follows IRA rules. Contributions aren’t deductible for parents; the company’s contribution is a deduction for the company and tax-free to the employee.
Questions to ask your CPA
- Should my company contribute for my children as employees?
- How does this compare with a 529 or a child’s Roth IRA?
Common questions
Who can open one?
Accounts are for children under 18 with a Social Security number. A parent or guardian elects to open it.
Are contributions deductible?
Not for parents. A company's contribution for an employee is a deduction for the company and isn't taxed to the employee, up to $2,500 a year.
When can the money be used?
It's locked until the child turns 18. After that, the account follows the rules for traditional IRAs.
How does it compare with a 529 or a Roth IRA?
A 529 is better for education costs, and a child's Roth IRA, funded from real wages, grows tax-free. Many families use a Trump account alongside them, especially to capture the $1,000 Treasury deposit.
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Education, not advice. Tax law changes and every situation is different, so confirm the details with your CPA or tax advisor before acting. This page was last checked against tax law as of October 2026, including the 2025 tax law, in October 2026.