Who qualifies for a Trump Account?
All children who are under the age of 18, are US citizens, and have a Social Security number.
Who can contribute to my child's account?
Anyone! Parents, grandparents, family friends, employers, or the child themselves can contribute.
How much can be contributed to the account? Is there a limit?
The annual contribution limit is $5000. The cap will be inflation indexed beginning in 2027.
Does the seed money count toward the annual limit?
No! Both the $1000 government contribution and the $250 Dell contribution are excluded from the annual limit.
Are contributions Pre-Tax?
No, contributions are after-tax dollars and are not tax deductable.
Can my employer contribute?
Yes, they can contribute up to $2500 per year (counts toward $5000 annual limit) and this money is completely excluded from your W-2 taxable income!
Is there a deadline for signing up my child?
The deadline is for enrollment is December 31 of the calendar year before the child turns 18.
Does there have to be earned income for contributions to be made?
No, unlike the Roth and IRA, there does not need to be earned income to qualify.
What are the investment options for a Trump Account and what do they cost?
By law, Trump Accounts can only invest in highly diversified, unleveraged U.S. equity index funds or ETFs with an expense ratio at or below 0.10%.
What will happen to this account once my child turns 18?
On January 1st of the year they turn 18, the account transitions into a standard Traditional IRA in the child's name, and standard IRA rules take over.
