under age 18. These accounts operate as modified traditional IRAs under §408(a), with eligibility, contribution, and distribution rules specifically tailored to minors.
Who Is Eligible
Any U.S. child under age 18 with a Social Security number can have a Trump Account.
Key Features
$1,000 federal seed contribution for eligible children born Jan. 1, 2025 – Dec. 31, 2028.
Annual contribution limit of $5,000, indexed for inflation after 2027/2028 (depending on source). Contributions may come from parents, relatives, employers, nonprofits, or government entities.
Employer contributions (up to $2,500 per employee) are not taxable to the minor.
Investment options are limited to lowcost mutual funds and index ETFs, reinforcing longterm savings goals.
No withdrawals allowed before age 18; after that, traditional IRA rules apply.
Tax treatment:
o Contributions are generally aftertax (no deduction).
o Earnings grow taxdeferred.
o Withdrawals after age 18 follow traditional IRA taxation rules.
Easy Tax Service in Prescott Valley can help if you have any questions about the tax implications of Trump Accounts. Our tax preparers have over fifty years of combined experience preparing taxes. Easy Tax Service is open year-round and committed to providing high-quality tax preparation. Please give us a call at 928-775-7000 to schedule an appointment today.