Trump Accounts —What You Need to Know

Created under the One Big Beautiful Bill Act (signed July 4, 2025), Trump Accounts are now available for election and open for contributions starting July 4, 2026. Below is everything needed to advise clients effectively.

What Is a Trump Account?

A Trump Account is a custodial traditional IRA established for any U.S. child under age 18 who has a valid Social Security number. Earnings grow tax-deferred, and withdrawals after age 18 are taxed as ordinary income — functioning similarly to a traditional IRA.

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File Form 4547 With 2025 Tax Returns

The fastest way to open a Trump Account is to file IRS Form 4547 electronically with the client’s 2025 federal tax return. This is the top action item for every client with children under 18.

Eligibility Requirements

A child qualifies for a Trump Account if they meet all three criteria:

• Under age 18 as of December 31 of the filing year
• Valid Social Security number issued before filing
• No prior Trump Account already opened

Connecticut Clients — Additional Charitable Deposits

Connecticut families with children age 10 and under may be eligible for up to $500 in additional free deposits, stacked on top of any federal seed money:

• Dell Foundation: $250 for children age 10 and under in ZIP codes with median income below $150,000
• Dalio Philanthropies (CT-specific): Additional $250 for ~300,000 CT children age 10 and under in qualifying ZIP codes
• Approximately 87% of Connecticut ZIP codes qualify under the income threshold

For more info contact us today!