Trump Accounts are a new type of individual retirement account for children established by the Working Families Tax Cuts Act of 2025.

 The accounts are designed to help children begin long-term investing and building financial security early in life, and to learn about financial markets through real-world participation.

Giving Children a Head Start on Saving and Investing
One of the biggest advantages of starting early is the time it gives you. Even small amounts invested over many years can grow, helping children understand the importance of saving, investing, and planning for the future.

Trump Accounts are designed to introduce children and families to long-term investing at an early age. Beyond the potential financial benefit, these accounts can become a tool for conversations about money — helping children learn concepts like saving, goal setting, and how investments can grow over time.

Building Financial Confidence from an Early Age
Financial education is one of the most valuable gifts parents and families can provide. A child who grows up understanding how money works is better prepared to make informed decisions later in life.

As children get older, families can use Trump Accounts as an opportunity to talk about:

• The difference between saving and investing
• How money can grow over time
• The importance of planning for future goals
• How financial decisions today can impact tomorrow

A Family Opportunity to Invest in the Future
Trump Accounts allow more than just parents to contribute. Family members and friends may also contribute, creating an opportunity for grandparents, relatives, and loved ones to participate in a child’s financial future.

Instead of another toy or gift card, contributions to a child’s account can become a meaningful investment that supports future goals.

What Families Should Consider
Like any financial decision, families should consider how a Trump Account fits into their overall financial plan. Parents may want to think about:

•  Their child’s long-term goals
• Other savings options available for education or future expenses
• How they want to balance saving for their child with their own financial priorities

A financial professional can help families understand how different savings and investment options work together.

The Role of Community Banks in Financial Education
At Better Banks, we believe financial wellness starts with knowledge. Helping families understand new financial tools and make confident decisions is part of our commitment to serving our communities.

Whether you are teaching a child to save their first dollar or planning for their future, small steps today can help build stronger financial habits for tomorrow.

Before opening a Trump Account, families should review eligibility requirements, contribution limits, and investment details to understand how the account works and whether it aligns with their goals.

Frequently Asked Questions about Trump Accounts

1. What is a Trump Account?

• A Trump Account is a traditional IRA established for a child, with special rules before the child turns 18.
• The child is the legal owner of the account. Until the child reaches legal adulthood, a parent, guardian, or other authorized individual manages the account.

2. Who is eligible for a Trump Account and the $1,000 federal pilot contribution?

• A Trump Account can be established for any child with a valid Social Security number who will not reach age 18 before the end of the relevant calendar year.
• U.S. citizen children born from 2025 through 2028 are eligible to receive a $1,000 federal contribution to their Trump Account from the U.S. Treasury.

3. Why open a Trump Account?

• Opening a Trump Account gives children access to contributions from parents, family members, and friends.
• Some children may qualify for additional contributions, including the $1,000 federal pilot contribution and other donor-funded contributions available to certain groups of children. In addition, certain employer contributions may be made on a pre-tax basis, making Trump Accounts a tax-advantaged way to invest for a child’s future.
• There is no cost to open or maintain a Trump Account.

4. How do you open a Trump account?

• Parents, guardians, and other authorized individuals can elect to open a Trump Account and receive the $1,000 federal pilot program contribution for eligible children at any time by submitting IRS Form 4547, Trump Account Election(s).
• The fastest, safest, and easiest way to submit IRS Form 4547 is online through an IRS account at IRS.gov or when filing a federal tax return. Families can check the status of their IRS Form 4547 submission online in their IRS account.

5. Who can contribute to a Trump Account and what are the contribution limits?

• Parents, family members, friends, and employers can collectively contribute up to $5,000 to a child’s Trump Account each year. Employers may contribute to the Trump Accounts of their employees or their employees’ children, up to $2,500 per employee each year.
• Qualified nonprofit and government contributions, including the $1,000 federal pilot program contribution, do not count towards the $5,000 annual contribution limit.

6. How are funds in a Trump Account invested?

Funds in Trump Accounts are invested in a diversified index fund of U.S. companies, such as the S&P 500. Funds will be invested automatically in a default fund. Earnings grow tax-deferred while they remain invested in the account.

7. When can a child access their money?

When a child turns 18, the child takes over management of the account, the restriction on account withdrawals ends, and the account transitions to and follows the rules that generally apply to a traditional IRA. Certain withdrawals for eligible expenses, such as higher education or the purchase of a first home, may qualify for exceptions to the usual early withdrawal penalty under IRA rules.

Once a Trump Account is activated, families will be able to use the Trump Accounts app or online account platform at TrumpAccount.com to:

• Track contributions
• Monitor investments
• Access educational resources

Timeline and Implementation

• Beginning July 4, 2026, Trump Accounts will be able to accept contributions from parents, family members, friends, and other eligible contributors, subject to annual limits.
• Beginning July 4, 2026, eligible children will begin receiving the $1,000 federal pilot program contribution from the U.S. Treasury deposited directly into their Trump Accounts.
• Additional guidance on employer contributions to Trump Accounts is coming soon.
• Later this year, Treasury and the IRS will provide further guidance on account rollovers, distributions, qualified general contributions, reporting, and other issues.