Trump Accounts are a new government-backed savings and investment program designed to help children build wealth for the future.
If you’re a parent, grandparent, or guardian looking for ways to invest in a child’s future, understanding how Trump Accounts work can help you determine whether this new program is right for your family.
What is a Trump Account?
A Trump Account is a tax-deferred investment account established for children under age 18. The account is designed to help young Americans build long-term savings that can be used for future opportunities.
Who can open a Trump Account?
Parents or legal guardians are responsible for establishing and managing the account until the child reaches adulthood. To open an account, the child must:
· Be a U.S. Citizens under the age of 18
· Have a valid Social Security number
What are the annual contribution limits?
· Contributions are allowed up to $5,000 annually, per individual child
· Legal guardians, parents, grandparents and/or family members may collectively contribute to the $5,000 limit per child
When can the money be used?
Withdraws are not permitted before the age of 18. When your child turns 18, they take full ownership of the account.
Beginning on January 1 of the year your child turns 18, the account follows the rules of a Traditional IRA, meaning they can keep it as it or roll it into another IRA account.
They can also choose to withdraw at this time, but distributions may be taxable and are subject to penalties.
Is my child eligible for the $1,000 Government Deposit?
Eligible children born between January 1, 2025, and December 31, 2028, may receive a $1,000 government contribution
What is the Dell Bonus?
The Dell Bonus is a separate initiative funded by Michael and Susan Dell that provides an additional $250 contribution for qualifying children who participate in the program.
The Dell Bonus may be available to:
· Children age 10 or younger who were born before 2025
· Families living in ZIP codes with a median household income of $150,000 or less
· Children enrolled in a Trump Account
Zip codes in our Branch footprint that may qualify for this bonus include: 18901, 18914, 18917, 18920, 18923, 18930, 18942, 18944, 18947, 18951, 18955, 18960, 18962, 18964, 18966, 18969, 18970, 18972, 18974, 18976, 19006, 19007, 19020, 19021, 19030, 19047, 19053 and most Philadelphia County zip codes.
Can my child qualify for both the $1,000 Government deposit and the $250 Dell Bonus?
No. The offers are exclusive of each other.
Can Inspire Federal Credit Union Open a Trump Account for Me?
Currently, the rollout of Trump Accounts is being administered through the federal program and all Trump Accounts will initially be created and held with Treasury’s designated financial agent. As guidance continues to evolve, credit unions may have future opportunities to participate in account administration.
Inspire Federal Credit Union will continue monitoring updates and sharing information that may benefit our members.
How do I open a Trump Account?
You can elect to open a Trump Account for your eligible children using IRS Form 4547 at any time. You may fill out and submit the form right in the Trump Accounts app, when you file your taxes, or through the secure IRS website.
Where can I learn more?
Visit the official Trump Accounts resources (https://www.trumpaccounts.gov/) and continue checking with Inspire Federal Credit Union for updates as the program evolves.