Empower Your Child’s Future: Start Their Retirement with $1,000 Today

Trump Accounts for Kids (New 2025 Savings Plan) How to Give Your Child a $1,000 Head Start Retirement 

It’s never too early to start saving for retirement — and now families have a brand-new option.

Trump Accounts For Kids, a new child retirement savings plan created in 2025, may give your child a powerful head start:

Trump Accounts? 

Why it matters to Parents?

Most parents think of 529 college plans first, but Trump Accounts focus on retirement. That means your child could have tens of thousands set aside by adulthood — an advantage that grows with compound interest.  

What Are Trump Accounts?

If you’re familiar with a traditional (non-Roth) IRA, Trump Accounts work in a similar way — with a few important differences:

• No earned income required before contributions can begin.
• Limited investment choices — mainly diversified index-based funds.
• Different contribution limits and rules on who can contribute.
• No withdrawals allowed until January 1 of the year your child turns 18.

While the Treasury Department is still finalizing the details, the goal is to create a long-term savings tool that benefits children from birth into adulthood.

Who Can Contribute — and How Much?

Four main contributor categories are outlined in the law:

1. Individuals — Parents, grandparents, or others can contribute up to $5,000/year (adjusted for inflation starting in 2028).
2. Employers — Can contribute, with up to $2,500/year excluded from the employee’s taxable income. This counts toward the $5,000 cap.
3. Government & Nonprofits — Can make unlimited contributions to “qualified groups” (e.g., all kids in a school district), provided every child in the group receives the same amount.
4. Federal Government — Will contribute $1,000 for each eligible child born 2025–2028, separate from the $5,000 annual cap.

What Could This Look Like For Your Child?

Let's say parents contribute $2500 per year into Trump Account starting at birth, with a modest 7% annum return. By age 18, that account could grow to more than $90,000 — before your child even works their first job.

That’s not just numbers on paper — that’s a potential down payment for their first home, seed money to start a business, or a major head start on retirement savings.

Opening and Managing the Accounts

You’ll be able to open Trump Accounts through the Treasury Department and, potentially, through banks or financial institutions. Investments will be restricted to diversified funds tracking established indices like the S&P 500.

Withdrawal Rules

Funds cannot be withdrawn until the year the child turns 18, at which point the account converts to a traditional IRA. Early withdrawals (before age 59½) generally incur taxes and a 10% penalty — except in certain cases:

• Higher education expenses
• First-time home purchase (up to $10,000)
• Birth/adoption costs (up to $5,000 per child)

How Withdrawals Are Taxed

• After-tax contributions (from parents) = not taxed again.
• Employer, nonprofit, and government contributions + earnings = taxed as ordinary income when withdrawn.

Is a Trump Account Right for Your Family?

Trump Accounts join existing options like 529 college savings plans and custodial accounts, but with a clear focus on retirement and long-term investing.

The contribution window begins July 4, 2026, so families have time to plan. Reach out if you would like a referral for a financial advisor that can help you weigh the benefits and see how these accounts might fit into your broader wealth-building strategy.

Key Takeaways:

• New savings tool for children’s future.
• $1,000 government starter bonus for kids born 2025–2028.
• Contributions allowed from parents, employers, and others.
• Withdrawals restricted until age 18, with IRA rules thereafter.

Want to set your child up for a six-figure retirement advantage before they turn 18? Let's talk strategy- We are checking with legal to see how we can offer an incentive to all homebuyers to after July 4th, 2026 to start assisting with creating these accounts to all of our clients! 

Contact our team today to get a referral for a Financial Planner that can offer a personalized strategy- we're in the long game and we can wait 18 years to have them FUND! 

Disclaimer
The information provided in this article is for informational purposes only and should not be construed as financial, tax, or legal advice. Trump Accounts are a newly created program, and rules and regulations are still being developed by the U.S. Treasury Department. You should consult a qualified financial advisor, tax professional, or attorney to determine how this program may apply to your individual circumstances. Past performance of investments does not guarantee future results.