It’s Only Money
Trump Accounts: Who & How-To
The Big Beautiful Bill included a program to encourage saving and investing for every family and paved the way for parents to establish a Trump Account for each of their children. If you are as interested in financial literacy as I am, then you will be excited to learn about the details of this federal program, which makes it easier than ever to set up an account in a child’s name and have it invested in a diversified portfolio. These accounts may receive an additional $5,000 annually from a variety of sources, including grandparents.
Here is how to set up a Trump Account and contribute to it each year:
Eligibility: Available to all children with a Social Security number who are currently under the age of 18.
$1,000 federal “seed” money for babies born in 2025, 2026, 2027, or 2028.
$250 corporate “seed money” for all who open an account, regardless of age, provided the ZIP code of their home address is associated with a median household income of $150,000 or less.
First Step: The child’s parent(s) file their 2025 taxes. The child(ren), with Social Security number(s), are included on the form as dependent(s).
Second Step: The parent(s) download the Trump Account app: https://trumpaccounts.gov/
Alternatively, the parent(s) may file Form 4547 with the IRS, but the easiest way to do this is through the app.
Third Step: The app walks the parent through the authentication process and asks for the child’s Social Security number. It is a straightforward process.
Fourth Step: The accounts are created, and the parents are notified once they are established.
Fifth Step: The parent sends invitations through the app platform to those who might want to contribute. Grandparents, adoring aunts and uncles, and even employers are likely contributors. The contributions are not tax-advantaged, but the growth inside the accounts is tax-deferred.
Sixth Step: As a grandparent, once you receive the invitation from the parent, you can make gifts to your grandchild(ren)’s Trump Account as either one-time or automatic recurring contributions.
These accounts can grow into a sizeable sum and receive favorable tax treatment, but the benefits go well beyond that. They give children a chance to become investors and participate in the growth of the economy while creating opportunities for families to teach important lessons about compound interest, long-term planning, generosity, stewardship, sacrifice, and the prudent use of money. Over time, these lessons may help cultivate curiosity, gratitude, and a greater appreciation for their role in the free-market system and the success of this great country.