Trump Accounts: A Powerful New Way to Start Your Kids Investing Early

A new law - the One Big Beautiful Bill Act - introduces Trump Accounts, a brand-new savings tool that lets you start building long-term wealth for your kids from day one.

Here’s why this matters: for children born between 2025 and 2028, the government will deposit $1,000 automatically when you elect the account using IRS Form 4547. From there, you (and even employers or nonprofits) can keep the momentum going—contributing up to $5,000 per year starting July 5, 2026. And unlike Roth IRAs, your child doesn’t need earned income to qualify.

Once you fund the account, the money grows tax-deferred and stays invested until your child turns 18. At that point, the account converts directly into a traditional IRA, setting them up with a serious head start on retirement savings. From there, standard IRA rules apply, including taxes on withdrawals and potential early withdrawal penalties (with common exceptions like education or a first home).

What makes this so compelling? Time and compounding. When you start investing this early, even modest annual contributions can turn into substantial long-term wealth. And unlike 529 plans, these funds aren’t locked into education—giving your child far more flexibility in how they use the money down the road. You also avoid many of the tax headaches that come with custodial accounts.

The accounts aren’t fully live yet, and filing Form 4547 may still require paper filing for now—but once online enrollment opens, the process should become much smoother.

Bottom line: Trump Accounts give you a rare chance to jumpstart your child’s financial future. Start early, stay consistent, and let compounding do the heavy lifting. Contact our tax team this summer to learn more!