At American Pacific Tax Limited, we specialize in guiding families through new U.S. tax programs. Below, our consultants answer the most common questions about Trump Accounts so you can understand how they may benefit your children.

What is a Trump Account?

A Trump Account is a new type of individual retirement account (IRA) for eligible children, created under President Trump’s One Big Beautiful Bill Act. It’s designed to help families build long‑term wealth for the next generation.

Who is eligible?

Trump Accounts are available for:

  • U.S. citizen children with a valid Social Security Number (SSN)
  • Children born between January 1, 2025 and December 31, 2028
  • Children for whom no prior pilot program election has been made

Eligible children may receive an automatic federal contribution if an election is properly filed.

Who can contribute?

  • Federal government: One‑time $1,000 contribution when an election is filed
  • Parents and family members: Annual contributions up to $5,000 per child
  • Employers: May also contribute within the same annual limits

This structure ensures every eligible child starts with a balance, even if families cannot contribute immediately.

Are contributions tax deductible and is the growth taxable?

  • Contributions are not deductible at the federal level (after‑tax dollars, similar to Roth savings)
  • Investment earnings grow tax‑free while funds remain in the account

This makes Trump Accounts comparable to Roth IRAs or 529 plans in their tax treatment.

What are eligible investments?

Funds in a Trump Account may be invested only in eligible investments, generally:

  • Mutual funds or exchange‑traded funds (ETFs) tracking U.S. company indexes (e.g., S&P 500)
  • No leverage allowed
  • Annual fees and expenses capped at 0.1% of the balance
  • Must meet additional criteria set by the Secretary of the Treasury

How can tax professionals help?

At American Pacific Tax Limited, we help families integrate Trump Accounts into broader strategies like 529 plans and Roth IRAs. Our advisors guide you through every step:

  • Filing elections
  • Coordinating contributions
  • Monitoring withdrawals

This ensures you preserve tax benefits and avoid costly compliance errors.

Next Steps

Curious about whether a Trump Account fits your family’s financial plan? Contact us today to schedule a consultation.

Disclaimer: This information is for general educational purposes only and should not be relied on as tax, legal, or accounting advice. Please consult your own advisors or reach out to us for personalized guidance.