SENSIBLE STEWARDSHIP
What Is a Trump Account & Why Would You Want One? BY AMY ARTIGA Something big is happening this Fourth of July. Not only is it our nation’s 250th anniversary of declaring our independence from Great Britain, but Trump Accounts are launching! What is a Trump Account? A Trump Account is a new type of investment account for minors that was established by the One Big Beautiful Bill Act of July 2025. As the official government website states, they aspire to “jumpstart the American Dream” as they are “building long-term financial security for millions of children” (trumpaccounts.gov). The accounts allow contributions of up to $5,000 per year of after-tax money and are automatically invested in the stock of American companies. The funds are inaccessible until age 18, at which point they can be used for college, to purchase a house, to start a business, or left to grow until retirement. No taxes are due while the money stays in the account, and the growth (and any funds that were not taxed before being invested) is taxed as ordinary income when it is withdrawn from the account. Summer 2026
Why Open a Trump Account? Free Money The number one reason many people are opening Trump Accounts is to get free money. For children born between January 1, 2025, and December 31, 2028, the US Treasury will automatically deposit $1,000 into their accounts. To help even more children, the Dell Foundation has pledged $6.25 billion towards Trump Accounts. They will provide $250 for each child under age ten who is not eligible for money from the U.S. Treasury and lives in a zip code with a median income below $150,000.
For children born between January 1, 2025, and December 31, 2028, the US Treasury will automatically deposit $1,000 into their accounts. Invest for the Future Trump Accounts also provide a new avenue to invest for a minor with different features than the current options. A common way many parents are saving for their children is through 529 plans, but those are limited in use to only educational expenses. Trump Accounts are more flexible in that they allow the money to be used to start a business or purchase a home as well. UTMA (Uniform Transfers to Minors Act) and UGMA (Uniform Gifts to Minors Act) accounts are another option for investing a child’s money, but they give the child unfettered access to the full account at the age of majority, which is between 18 and 25, 5