Trump Accounts: What Families Need to Know Before 2026

The creation of Trump Accounts could be one of the most significant changes to American family finances in a generation. Starting in 2026, every parent and guardian of a child under 18 will be able to open a federally approved, tax-advantaged investment account designed to provide lifelong financial security for their child.

The idea is simple but revolutionary: a universal savings account for children, in some cases partly funded by public or charitable donations, invested exclusively in low-cost U.S. stock market index funds, and kept locked until adulthood. Parents cannot use these accounts for toys, vacations, or emergencies. These accounts aim to create a solid foundation for long-term financial stability and retirement security.

Since these accounts will be activated during the 2025 tax filing cycle, families should familiarize themselves with the rules now, well before the first IRS forms are available in mid-2026.

This guide explains what Trump Accounts are, how they differ from 529 plans and custodial accounts, what families will need to do in 2026, and—crucially—why these accounts can be confidently used as a permanent part of the tax code.

What Trump Accounts Are—and Why They Matter

Trump Accounts were established through the One Big Beautiful Bill Act, which added a permanent new structure to the federal tax code. Think of them as a child’s IRA, serving a strict long-term purpose. A parent or guardian opens the account, the child becomes the owner at age 18, and the assets grow tax-deferred for many years.

The core design is intentionally simple. All Trump Accounts are invested only in broad, low-cost U.S. stock index funds managed by the Treasury’s financial agent. Parents cannot choose individual stocks or follow trends. They are not allowed to day-trade or switch sectors. The long-term discipline is built in.

Starting in 2026, families can contribute up to $5,000 per child, per year, regardless of income. Contributions are made with after-tax dollars (similar to a Roth IRA), but earnings grow tax-deferred and are taxed as income when withdrawn in adulthood. Contributions are tax-free when withdrawn later in life.

This feature alone makes the account appealing, but what really grabs public interest is the injection of seed capital. Children born between January 1, 2025, and December 31, 2028, will receive a one-time $1,000 federal contribution as soon as a Trump Account is opened for them. This contribution does not count toward the $5,000 annual limit.

Separately, philanthropist Michael Dell has announced a $6.25 billion donation to give $250 to as many as 25 million children, mainly those age 10 and under, living in middle-income ZIP codes. This philanthropic investment is expected to reach many families who will not qualify for the federal newborn bonus. These gifts are temporary and may never be repeated. However, the account structure is permanent.

How Trump Accounts Fit Alongside 529 Plans and Custodial Accounts

Many parents and grandparents already save for children using 529 education plans, UGMA/UTMA custodial accounts, or informal brokerage accounts. Trump Accounts do not replace these options, but they do change the optimal savings strategy.

A 529 plan remains the primary choice for education savings. Withdrawals for college, community college, trade school, or apprenticeships are tax-free. Funds can be transferred between siblings without penalty, and unused balances can now be rolled into Roth IRAs up to lifetime limits.

Custodial accounts are versatile but taxable. Earnings are taxed each year, sometimes at the parents’ marginal rate under the “kiddie tax.” These accounts are suitable for short-term needs such as sports, camps, a first car, or college expenses, but they are not ideal for long-term investing.

Trump Accounts serve a different purpose. They are solely long-term and tax-advantaged, with no tax penalties over time. Funds in these accounts are locked until adulthood and then treated like an IRA. This means:

* Families should prioritize Trump Account contributions for long-term investing.
* Custodial accounts should be reserved for near-term youth expenses.
* 529s should continue to hold education-specific savings.

In effect, families now use a three-bucket system: education (529), youth needs (custodial), and lifelong investing (Trump Account).

A Simple Comparison

Here is a practical way to see how the three major child-focused accounts differ:

 What Happens to the Money Later?

At age 18, the account transfers to the child, although early withdrawals are restricted and penalized similarly to a traditional IRA. After-tax contributions can be withdrawn without taxes, but earnings and government or charity contributions will be taxed as income if withdrawn before retirement age. This means the account is designed by law and its penalty structure to stay invested for decades.

Many people worry that a Trump Account won’t be helpful for a first home because “you can only take out $10,000.” That isn’t actually true. The $10,000 limit applies only to the account’s taxable portion — the investment growth and the federal or Dell seed money. Everything the family contributes over the years, up to $5,000 a year through age 17, is after-tax money, and the young adult can withdraw all of it, tax-free and penalty-free, at any age.

This means a young adult who has, for example, $90,000 in family contributions and $100,000 in growth could legally withdraw the full $90,000 for a down payment, plus $10,000 of the growth without penalty. Only withdrawals exceeding that amount would be subject to taxes and an early-withdrawal penalty. In other words, the Trump Account can still provide a meaningful down payment for a first home, while the rules are designed to preserve most of the account for long-term wealth and retirement.

Some parents will rightly worry that giving control of a large account to an 18-year-old is asking too much from a generation that might be overprotected and under-challenged. While tax penalties and withdrawal restrictions offer real guardrails, no law can replace maturity. That’s why families should treat the Trump Account not just as a savings tool but as a training tool. Parents and grandparents should involve their children in the process years before their 18^th birthday, showing them statements, explaining how compounding works, letting them practice budgeting, and teaching them the difference between long-term wealth and short-term gratification.

Schools, too, should add financial literacy to their curriculum because, for the first time in American history, millions of young adults will enter adulthood with a meaningful financial asset already in their name. If the country later finds that the age of responsibility truly begins after eighteen, Congress could raise the transition age to twenty-one without changing the program’s core structure. But the key point is this: the Trump Account will be most effective when combined with the one thing no legislation can provide—the development of financial character in the next generation.

Eventually, the child can roll the account into a traditional IRA or another eligible retirement account. Financial institutions like Vanguard and Fidelity do not initially manage Trump Accounts. Still, families will be able to perform trustee-to-trustee transfers later, likely starting in 2027 or 2028, depending on IRS guidance.

The table below shows what happens if a family contributes the maximum of $5,000 every year from birth through age 17 (18 contributions in total), and the account earns a steady 6% annual return with no withdrawals. No withdrawals and no additional seed contributions are included (federal/Dell seeds would increase these amounts further).

Are These Accounts Permanent?

One concern readers will rightly have is whether this is a temporary political construct that might vanish with the next administration or Congress. The answer is important because families will not invest in a tool they cannot trust.

The good news is that the accounts are permanent. They were established through statutory changes to the Internal Revenue Code and do not have a sunset clause. They endure political shifts similarly to IRAs, 401(k)s, and 529 plans, which have lasted through numerous political cycles.

What is temporary are the “sweeteners”—the $1,000 newborn bonus and philanthropic matches. Those may come and go, just as education credits and incentives have changed over time. But the underlying account structure will not be dismantled without an explicit repeal, and such a repeal would be politically toxic. No Congress wants to run on “We eliminated children’s savings accounts.”

Even opponents of the program primarily support its idea, which is similar to proposals Democrats have pushed for years under the name of “baby bonds.” A future Congress might rename the accounts to take the Trump label off of it, increase the contribution limits, or add more investment choices, but the main framework will likely stay the same.

In short, families can confidently adopt Trump Accounts. This is a long-lasting addition to the American savings scene.

What Families Should Do Now

The practical steps are simple, but they require forethought.

First, make sure every eligible child has a Social Security Number. Families with newborns from 2025 to 2028 should plan to open these accounts once Form 4547 becomes available, so the $1,000 federal seed money can be deposited. Families with older children, especially those under 11 who might qualify for the Dell $250 contribution, should be prepared to activate their accounts in 2026 and start contributing.

Second, parents and grandparents should start rethinking their savings strategy. New long-term contributions should prioritize the Trump Account over custodial accounts. Education-specific savings should still be made through 529 plans. Custodial accounts should only be kept for immediate youth needs.

Third, families should set reminders for early 2026 when IRS Form 4547 becomes available. This form is the starting point for the entire system. Without it, no account will exist, and no seed money will be deposited.

Finally, families should communicate now. Grandparents often want to contribute, but the annual $5,000 limit is cumulative across all contributors. Families need to coordinate to avoid exceeding the cap.

A Transformational Opportunity

If Trump Accounts reach their full potential, they will establish the largest intergenerational savings foundation in American history. Contributing $5,000 annually from birth to age 18, even with modest stock market returns, creates a significant wealth base. Add in government and philanthropic seed contributions, and many children will enter adulthood with assets that could grow for 50 years or more.

This is not simply a financial tool. It is a cultural one. It encourages families to think long-term, to build generational stability, and to give every child a stake in the future.

Families who understand the rules now will be the first to benefit when the system goes live in 2026.

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Courts in the Crossfire: How Injunctions and Venue Games Are Damaging the Judiciary

On October 27, 2025, a federal judge in Washington, D.C., blocked Executive Order 14248, which required proof of citizenship for voter registration on federal forms. The executive order goal was straightforward: ensure that only citizens vote, as mandated by federal law. Judge Colleen Kollar-Kotelly, appointed by President Bill Clinton, ruled that the President “lacks authority” to alter election procedures under the Elections Clause.

That ruling conflates two very different constitutional areas. The Elections Clause that she relies on governs how elections are conducted—such as polling hours and ballots—not who is eligible to vote. Citizenship is a legal qualification, and the President’s duty under the Take Care Clause is to enforce those laws faithfully. Cases like Arizona v. Inter Tribal Council (2013) confirm that federal authorities can require proof of eligibility. Under the Youngstown framework, a 1952 Supreme Court test that defines the limits of presidential power, this order clearly falls within the category in which the President acts with congressional approval. The National Voter Registration Act allows the Election Assistance Commission to require information “necessary” to determine eligibility. This isn’t executive overreach; it’s the proper execution of the law. 

Sober Awakening: Faith's Quiet Revolution

 A Wedding Without Wine

Last month, I attended the wedding of a young couple, only twenty-two years old. It was one of the most touching ceremonies I’ve ever seen: love, faith, and reverence filled the hall. Every detail, from the prayers to the communion hymns, moved those in attendance.

At the reception, no alcohol was served—but the dance floor was packed. Laughter, rhythm, and joy filled the night. These were twenty- and thirty-somethings—faithful, confident, and completely comfortable in their sobriety. It wasn’t deprivation; it was joy rooted in faith, the kind that sees no need to dull the senses or cloud the moment.

That evening was symbolic of a quiet revolution that is underway. After generations of associating alcohol with adulthood and success, America is shifting away from that view. Gallup reports that only about 54% of adults now drink, down from two-thirds just a few years ago. This isn’t due to policy—it’s personal. A change of heart, and young people are leading the change.

Vindicated: Trump’s Bold Plan Ignites the Middle East’s Long-Awaited Dawn

Nearly two years ago, in the shadow of Hamas’s barbaric October 7, 2023, assault, I wrote about the unexpected opportunity emerging from that horror. Then, in June of this year, I described a turning point, Israel’s decisive actions against Iran and its proxies that I believed would realign the region. Those posts, offered a prediction: that Iran’s overreach would ultimately collapse its influence, strengthen the Abraham Accords, and open a path toward durable regional peace. What then was hope and optimism is now becoming history and I am profoundly grateful.

The Plan That Changed the Game

President Donald Trump’s 20-point plan to end the Gaza War has redefined Middle East diplomacy. Its first phase, securing the release of hostages, a ceasefire, and initial withdrawal, and release of some Israeli held prisoners, has been signed by both Israel and Hamas, with implementation imminent.

From Riyadh to Islamabad, world leaders have hailed Trump’s blueprint as a “bold vision for peace,” combining humanitarian relief, demilitarization, and post-war governance.

This isn’t a symbolic gesture, it’s a structural shift. Hamas is militarily broken, Iran’s proxies are neutralized, Iran is on its heals, and the Abraham Accords are expanding. The cycle of perpetual war is giving way to a framework of mutual security and economic growth.

Trump’s success in the Middle East stems not only from strength, but from fairness. He is trusted precisely because he has acted as a credible, even-handed broker, something few American presidents have achieved. Israel remains America’s steadfast ally, but Trump made clear to Prime Minister Netanyahu that there would be no annexation of the West Bank, preserving space for Palestinian self-governance. When Israeli operatives overstepped in their failed strike on Hamas leadership in Doha, Trump insisted Netanyahu issue a formal apology to Qatar, signaling that even allies must respect the rules of peace. That balance, firm loyalty to Israel paired with accountability and respect for Arab sovereignty, has earned him rare trust across the region. Leaders from Saudi Arabia to Jordan to Egypt view Trump as a negotiator who honors strength, keeps his word, and delivers results.

From Despair to Leverage

An Open Letter on the Dignity Act of 2025: A Bipartisan Start

To Representatives María Elvira Salazar (R-FL), Veronica Escobar (D-TX), and all Americans:

In a time of partisan deadlock, your Dignity Act of 2025 (H.R. 4393) shows promise through bipartisan backing, including eleven Republicans and eleven Democrats. However, it risks failure because it repeats previous mistakes. As a commentator who recently completed a four-part series on immigration reform, I recommend that you focus on framing your bill strategically, prioritizing overhaul of the 1965 Immigration Act, and enforcement and reform of immigration related policies before legalization.

Where the Act Gets It Right

Your bill’s enforcement measures are robust. A $46.5 billion investment in barriers, technology, and ports of entry, along with 24/7 aerial surveillance and harsher penalties for smugglers and repeat offenders, demonstrates genuine seriousness. The phased rollout of mandatory E-Verify is vital. These measures echo my call for “relentless enforcement” at the border and in the interior as the non-negotiable precondition for any agreement.

Your asylum reforms are equally important. Humanitarian camps to process claims within 60 days, penalties for fraud, and regional processing centers abroad are practical steps to prevent abuse of the asylum system. If executed correctly, as part of broader reforms, these changes could help close the “catch and release” loophole and restore trust in our asylum laws.

I also see value in the Dignity Act’s restitution requirements. Requiring undocumented immigrants to pay $7,000 over seven years, undergo biometrics, check in regularly, and remain ineligible for federal benefits acknowledges that legalization must be earned, not handed out. These elements closely align with the Temporary Guest Resident and Special Legal Permanent Resident models I have proposed.

Gerrymandering: The One Thing Democrats and Republicans Agree On

Gerrymandering is once again in the news. I first wrote about it in 2019, but since then what was once an occasional tactic has turned into a high-stakes battleground in the fight for power. In this post, I suggest one way to control the worst gerrymanders — by empowering federal courts to strike down maps that are grossly disproportionate.

In Texas, Republicans redrew maps to improve their chances in 2026, prompting Democrats to denounce the move as an attack on democracy. Meanwhile, in California, Governor Gavin Newsom aims to expand a heavily Democratic-leaning delegation, where a 22.3% distortion favoring Democrats, combined with the state’s 52-seat delegation, creates one of the most significant imbalances in the nation.

Gerrymandering has been a feature of American politics since the founding of the Republic and has long been a staple of the country's political landscape. In recent decades, however, the practice has become more advanced, more coordinated nationwide, and more central to partisan conflicts. Additionally, technology enables precise manipulation, and national leaders are now investing directly in state-level races.

Immigration Reform Part 4: From Strategy to Action

For decades, Washington has traded promises of border security “tomorrow” for leniency “today.” In Reagan’s 1986 Act, legalization proceeded, but enforcement never followed. Americans now understand that promises alone do not secure borders—only laws, resources, and tangible results do. This plan changes that history by first rebuilding laws, institutions, and enforcement, while registering illegal immigrants only after legislative changes are put in place. Legalization will only begin once the new system has demonstrated its effectiveness.

A Demographic Reality We Can’t Ignore

America faces a fertility crisis. Our fertility rate, at 1.6 compared to the 2.1 needed for stability, risks a 25% population decline by 2085, resulting in a drop from 334 million to 251 million. This would shrink the workforce and decrease economic output. Unless fertility rates rise significantly, immigration will be the most effective way to stabilize the population, requiring 2.5–3 million legal immigrants annually.

But immigration alone is not a solution. The economy of the 21st century will be shaped by automation, robotics, and artificial intelligence, which will boost productivity and decrease the need for certain types of labor while increasing demand for others. This means immigration must be managed carefully, not just in terms of volume, but also in terms of composition, balancing birth rates, economic needs, and technological progress. When done correctly, immigration can offer both stability and flexibility during times of demographic decline and rapid change.