These accounts can be opened for children under age 18 who have a Social Security number.

Here’s how they work:

• Contributions are not tax-deductible.
Money added to a Trump Account is made with after-tax dollars, meaning there is no immediate tax benefit when contributing.

• Growth is tax-deferred.
Investments in the account grow without being taxed each year. This allows the funds to compound over time.

• Withdrawals are taxed later.
Once the child reaches adulthood (generally age 18), funds can be accessed — but withdrawals are taxed as ordinary income, similar to a Traditional IRA.

• There is a government-funded $1,000 starter contribution.
For children born between 2025 and 2028, the government provides $1,000 of seed money once the account is opened and eligibility is confirmed.

• The account is designed for long-term use.
Although funds become accessible at age 18, the structure encourages continued investment rather than immediate spending.

Bottom Line:
Trump Accounts aren’t a major tax break upfront — they’re a long-term investment tool for children. The real advantage comes from tax-deferred growth, early investing, and the $1,000 government contribution, which together can create meaningful value over time.