Big News for Local Families: Trump Accounts Are Here
A new type of federally established savings account — called a Trump Account — is now available for children, and it could be one of the most impactful financial planning tools we've seen in years.
Under Internal Revenue Code Section 530A, Trump Accounts are tax-deferred investment accounts designed to grow alongside your child from birth all the way into adulthood. Here's what every family in our community should know:
Free seed money — up to $1,250. Children born between January 1, 2025 and December 31, 2028 may receive a $1,000 federal contribution just for opening an account. On top of that, the Dell family (Michael and Susan Dell) announced a $6.25 billion philanthropic commitment in December 2025 that could add another $250 for children age 10 and under living in low- and middle-income ZIP codes. That's potentially $1,250 in your child's account before you contribute a single dollar.
Simple eligibility. Any U.S. citizen under age 18 with a valid Social Security number qualifies. Only one account per child.
Flexible contributions. Starting July 4, 2026, families can contribute up to $5,000 per year. Parents, grandparents, other relatives, and even employers can contribute — and employer contributions up to $2,500 annually are tax-deductible to the employer and excluded from the employee's income.
Low-cost, long-term investing. By law, these accounts invest in broad U.S. equity index funds (like the S&P 500) with annual fees capped at 0.10%. Growth is tax-deferred — meaning your child's investments compound without an annual tax drag.
How to open one. File IRS Form 4547 — which can be submitted alongside your 2025 tax return — or apply online at trumpaccounts.gov. Accounts are initially held with the Treasury's designated financial agent, with the option to transfer to a preferred brokerage later.
One important note: IRS guidance on these accounts is still evolving, and if education savings is your primary goal, a 529 plan may be worth comparing. At 18, your child will have full control of their Trump Account — so planning ahead matters.
Our team at Vance Wealth is here to help you evaluate whether a Trump Account fits into your family's financial picture. Reach us at 888-775-0950 or info@vancewealth.com.
The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.
Program details are based on currently available information and are subject to change pending additional IRS and Treasury guidance.
Vance Wealth is an independent SEC-registered investment adviser and is not affiliated with, endorsed by, or acting on behalf of the U.S. government or any government agency.




