Trump Tax Accounts

Trump accounts are a new type of individual retirement account (IRA) that will be effective for tax years beginning after 2025[1].

Key features include:

• Can be established for beneficiaries under age 18 [2]
• Annual contribution limit of $5,000 (non-deductible)
• Earnings grow tax-deferred
• No distributions allowed before age 18
• Limited investment options available

Additional benefits[3]:

• Employers can make excludable contributions up to $2,500 for employees under 18
• A pilot program allows the IRS to contribute $1,000 for eligible children born between December 31, 2024, and January 1, 2029
• Trump accounts are treated separately from other IRAs for contribution limit purposes