If you welcomed a child in 2025 (like me), then you need to know about the new Trump Accounts.
Let me break down what we know about them so far:
What is a Trump Account? A government-created investment account opened in a child’s name.
It's a tax-advantaged account. Think of it like an IRA with no tax deduction.
These accounts allow you to put funds in after-tax that grow tax-deferred.
Then you pay income tax when you take them out in the future.
And... for kids born between January 1, 2025, and December 31, 2028, you get an initial $1,000 from the federal government if you claim it.
You currently have two options:
Option 1 (likely the easiest): Visit trumpaccounts.gov and enter your email. You’ll receive instructions on how to set up the account and claim the $1,000 once funding becomes available.
Option 2: File Form 4547 with your tax return.
For most families, Option 1 is probably the better route, especially if you plan to file your 2025 tax return before July 4th, 2026.
Important: Trump Accounts are expected to be funded no earlier than July 4th. If you file your 2025 return before then without signing up through the website, the account may not be funded until you file your 2026 return.
Signing up through the website puts you first in line once funding opens.
As with any new program, there are still details to sort through.
We don't know if the funds will be able to be converted to a Roth IRA (which would be huge). And we do not know if it can be used for college, a house, etc.
I’m continuing to review the pros and cons and will share more guidance as we learn more, especially around how this fits alongside existing planning tools.
It is a no brainer to get this set up and to get the free $1,000, but adding more is not a for sure yes yet.
Financial Advisor