How to open a Trump Account for Kids?

Any child with a valid Social Security number who does not reach the age of 18 by December 31 of the tax year in which the contribution is made is eligible for a Trump Account. The beneficiary must be 17 or younger for the entire tax year in which the final contribution is made. To receive the free $1,000 federal grant, the child must be a U.S. citizen.

• Although a taxpayer can file for the election with the 2025 tax return, Trump accounts cannot receive contributions until July 4, 2026. Furthermore, special income tax rules apply to tax years beginning after December 31, 2025.
• The maximum annual contribution will be $5,000 (aggregated limit) and in 2028 this amount will be indexed to inflation.
• Employers can contribute up to $2,500 (amount will count toward the $5,000 limit) to the child of an employee's account, tax free, each tax year. Employer contributions to Trump accounts are excludable from an employee’s gross income (up to a cap) if made under a qualifying "rump Account Contribution Program. These new rule applies to taxable years beginning after December 31, 2025 or tax year 2026 and not tax year 2025.
• Certain government organizations, and charities may make qualified general contributions to Trump Accounts if they are given to a qualified class of account beneficiaries. (This contribution does not count toward the $5,000 limit.)
• Unlike contributions to IRAs (which require an IRA owner to have includible compensation), contributions may be made to a Trump account during the growth period even if the account beneficiary does not have includible compensation.

The Trump account can be opened and managed via any of the Financial Service organizations e.g. Fidelity, Schwab, Vanguard etc. The funds can be invested into Mutual Funds or Exchange Traded Funs (ETFs). 

At the age of 18 the beneficiary of the Trump Account will need to convert the account into an IRA. After that the regular IRA withdrawal rules will apply. Eligible disabled children may also be permitted to roll their Trump Accounts into an ABLE account.
A Trump Account could potentially hold two types of savings: 1. After-tax contributions and 2. Before-tax earnings from the investments. Thus, taxes on withdrawals will depend on what portion of the account is being withdrawn:

• After-tax amounts (e.g. contributions) that are withdrawn will be tax free (similar to a Roth account), since the taxes have already been paid on these assets.
• Pre-tax amounts (e.g. any tax-free contributions, appreciation, or earnings) will generally be taxed at the beneficiary's ordinary income tax rate. 

1. Contributions made with after-tax dollars, which means there is no tax deduction for contributions.
2. Contributions such as those made by an employer, a charity, or the government can be made with pre-tax dollars.
Potential Trump account - after the age 18 converted to an IRA - appreciation or earnings within the account can grow tax-free. For taxes on account withdrawals please see the section above.