What is a Trump Account?
A Trump Account is a revolutionary, federally regulated, tax-advantaged investment account designed specifically for U.S. citizens under the age of 18. This program is part of the Invest America initiative to help children build long-term equity from an early age.
Two-Phase Lifecycle
The program operates in two distinct phases:
- Growth Period (Ages 0-17): Accounts are managed by a parent, legal guardian, or state foster agency. Funds are invested in low-cost equity index funds with strict fee caps.
- Maturity Period (Age 18+): The account converts to a Traditional IRA and full custody transfers to the child, who can now make withdrawal decisions for qualified uses.
Key Features
- Government-seeded pilot funds for eligible children
- Three distinct contribution channels with separate annual limits
- Tax-deferred growth during the Growth Period
- Qualified withdrawal uses to support education, homeownership, and entrepreneurship
- Strict investment guardrails to manage risk