A Trump Account is a new type of individual savings account created under the Working Families Tax Cuts* (part of OBBB). It is designed to help children begin saving at an early age with support from family members and the U.S. government.
The account may be opened for a child (a holder of a valid U.S. Social Security Number) who has not reached age 18 by the end of the calendar year in which the account is established.
Trump Accounts may be established by:
The account is opened on behalf of the child, who is the designated beneficiary.
As part of a pilot program, Trump Accounts include a government contribution for certain eligible children.
Under the program:
This initial contribution is intended to provide a financial starting point for long-term savings.
The Trump Accounts are not designed to be savings accounts that the account owner can draw upon when they reach 18. Rather, they are more similar to IRA accounts in that they are intended to be used for retirement, and are taxed more similarly to IRA accounts.
Because Trump Accounts are newly created, their tax treatment, contribution limits, and withdrawal rules are defined by the enabling legislation and related guidance.
Account holders and families should review applicable rules carefully, as restrictions may apply to:
Further regulatory clarification may be issued over time.
For Americans living in Israel with U.S. citizen children, Trump Accounts may be available as a U.S.-based savings option. However, participation does not remove U.S. reporting obligations, and Israeli tax treatment may differ from U.S. rules.
Families should consider how these accounts fit into broader cross-border financial planning, particularly when assets or income are held outside the United States.
Philip Stein & Associates assists families in understanding how U.S. savings vehicles interact with international tax and reporting obligations. Contact our team to review how a Trump Account may apply to your family’s situation.
*One, Big, Beautiful Bill provisions | Internal Revenue Service. (n.d.). https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions