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Give Your Child a $1,000 Head Start Toward Their Financial Future ✨

  • Sarah Ritchie
  • 1 day ago
  • 2 min read

Greetings,

Some exciting news! The new Trump savings accounts for kids is launching on July 4, 2026! This could be a great addition to your existing savings plan. Read below to find out more. Follow the link to the Schwab website for a more in-depth explanation.

Beginning July 4, 2026, the new "Trump" accounts will launch. These accounts will give children born between January 1, 2025 and December 31, 2028 a one-time contribution of $1,000. But, anyone under 18 with a Social Security number can have one. The maximum annual contribution is $5,000 per account. Almost anyone can contribute to a child's Trump Account—including parents, grandparents, family members, friends, employers, and nonprofits.

These accounts will function similar to a Traditional IRA except the child doesn't have to have earned income, anyone can contribute to it, and contributions from individuals aren't tax deductible since they are made with after-tax dollars. Any earnings in the account will grow tax free until withdrawn. The contributions can be withdrawn tax free since they were made with after-tax dollars.

Once the child reaches 18, the accounts are converted to a Traditional IRA. Withdrawals are not generally allowed before age 18. After 18, any withdrawal would incur a 10% early withdrawal penalty until age 59½. Any funds deposited into these accounts can be invested in eligible mutual funds or exchange traded funds (ETFs).

To get started, you will need to download the Trump Account app in the Apple App Store or Google Play. Once in the app, you will be directed to fill out IRS Form 4547 to get the account open and receive the $1,000 if eligible. When it prompts you to choose a custodian for the funds, please choose Charles Schwab. That way, we will be able to be linked to that account as your financial advisor. We are not automatically linked. Once the account is established, reach out to us and we can guide you on how to link us.

Please reach out with any additional questions. We will do our best to guide you. Keep in mind that the information on these accounts is evolving and subject to change. For more detailed information, including the growth potential of these accounts, please follow the link below.

Sincerely,

Marshall


 
 
 

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