NEW TRUMP ACCOUNTS

As part of a broader family-focused policy platform, “Trump Accounts” would create a federal tax-advantaged savings account for Children under 18, but only those born between 2025 and 2028 qualify for the $1,000 benefit. These accounts would be funded with an initial government contribution of $1,000 and grows tax-deferred over time—like a traditional IRA. 

This initiative, passed as part of the OBBBA, is designed to support long-term savings and provide families with a meaningful financial foundation for their child’s future. 

Here’s what families need to know—and how Liberty Tax can help you make the most of it if it passes.

What Is a Trump Account?

Trump Accounts are tax-advantaged savings accounts for children.

Under the plan:

• Each eligible child born between January 1, 2025, and December 31, 2028, would receive an initial $1,000 deposit from the federal government
• The account would grow tax-deferred, with compound interest or investment earnings
• Parents or guardians could contribute additional funds annually
• At age 18, the funds become subject to rules similar to a traditional IRA  

The goal is to promote early investment, generational wealth, and financial security.

Key Features of the Proposed Accounts

• Eligibility: Eligibility is limited to children under the age of 18 with a valid Social Security number. However, only those born between 2025 and 2028 qualify for the $1,000 benefit.
• Tax treatment: Earnings grow tax-deferred, like traditional IRA accounts
• Qualified uses: Higher education expenses, first-time home buying up to $10,000, or retirement
• Contribution limits: Parents and others may contribute yearly. There is a $5,000 limit for family, friends, and employers, but no limit for contributions from the government or charities. 

Who Benefits from Trump Accounts?

These accounts are designed to benefit:

• Middle- and lower-income families who want to start saving but lack initial capital
• New parents seeking flexible, tax-deferred savings for their child’s future
• Grandparents and relatives who want to contribute gifts or early investments
• Families in underserved communities where generational savings have historically been limited

A government-funded jumpstart combined with tax-deferred growth could make a powerful difference by the time a child reaches college or adulthood.

What Should Parents Do Now?

1. Track your child’s birth year— Eligibility is limited to children under the age of 18. However, only those born between 2025 and 2028 qualify for the $1,000 benefit.
2. Keep your child’s Social Security Number and birth certificate on file
3. Plan to open the account once made available through a designated institution
4. Work with a Liberty Tax pro to understand how this affects future credits, dependency claims, and education planning

If you already use a 529 plan or other savings vehicle, a Liberty Tax expert can help you integrate this new option into your financial strategy.

Let Liberty Tax Help 

New savings tools mean new tax planning opportunities. Whether you’re welcoming your first child or preparing for another, Liberty Tax is ready to help you file confidently and build smarter strategies for your household.
Visit your local Liberty Tax office to learn how this and other credits (like the Child Tax Credit or EITC) can benefit your family.
We’re here to support families every step of the way—from diapers to diplomas.

Disclaimer: This advertisement is for informational purposes only and does not constitute legal, financial, or tax advice. Trump Accounts, details, availability, and eligibility requirements are not guaranteed. For personalized guidance, please consult a qualified professional.