What You Need to Know
Over the past few months, many of you have asked about the new Trump Account elections available with 2025 tax filings for eligible children under age 18. Below is a brief overview of what a Trump Account is, what to expect if you elected to open one with your tax return, and what to do if you did not but are now interested.
What Is a Trump Account?
A Trump Account is a newly created tax‑advantaged savings and investment account for children, established under the OBBB in July 2025. It is designed to help families start saving early for a child’s future, with tax‑advantaged investment growth.
Key highlights:
- Available for children under age 18 (not eligible if turning 18 in 2026)
- Children born 2025–2028 may qualify for a $1,000 federal starter deposit from the government (an account election is required to receive this)
- Families may make optional additional contributions of up to $5,000 per year beginning July 4, 2026
- Trump Accounts are similar to traditional IRAs but have separate contribution limits and special rules that do not apply to other IRAs
- Any funds deposited, including the initial starter deposit for qualified children, are invested within the account, allowing them to grow over time.
- At age 18, funds may be accessed without penalty for qualified uses such as education, a first home purchase, or starting a business, or the funds may remain invested and continue to grow (withdrawals are taxed at ordinary income rates)
This election can be made either with your tax return filing or, beginning July 4, 2026, through the government’s online portal: https://trumpaccounts.gov/
I Elected a Trump Account With My Tax Return. What Happens Next?
If you elected to open a Trump Account as part of your 2025 tax return, the election has already been submitted for the dependent(s) you requested. No action is required from you right now.
The federal government will handle the remaining steps to complete account setup and any applicable starter funding. An authentication process will be required, and you should expect additional communication as early as May 2026 from the Treasury Department (or its agent) with instructions to authenticate and activate your account(s).
If your dependent qualified for the $1,000 pilot contribution, the Treasury Department will make this contribution as soon as practicable after authentication is complete and the account has been successfully set up. This contribution will not occur earlier than July 4, 2026.
Please note that we will not receive account login credentials or manage these accounts on your behalf after filing.
I Did Not Elect a Trump Account. What Are My Options Now?
If you did not elect to open a Trump Account with your 2025 tax return, you can still open an account directly through the government’s online portal beginning July 4, 2026.
We are happy to answer general questions, however, account setup and management will be handled by you. If you would like guidance on whether opening a Trump Account makes sense for your situation, feel free to reach out to discuss this as part of a tax planning conversation.
Important Note
This is a new program and additional guidance may be released over time. The information above reflects what is currently available. If you’d like to discuss how this applies to your situation, please contact our office to schedule time for planning.
Sincerely,
Busek Olson & Associates | Taxman | West Fargo Tax & Accounting
Billing Disclosure: Questions, consultations, emails, and phone calls that require review, analysis, or guidance are considered consulting services and may be billed in accordance with our billing policy. Our team determines whether a service meets this standard. Please note that all services provided outside of your engagement are billable at our current standard rates unless otherwise agreed upon in advance.