Trump Accounts Launch July 4th — Here's What Every Florida Parent and Business Owner Needs to Know

Jun 30

3 min read

Updated: 3 days ago

Banner graphic for "Trump Accounts Launch July 4th" blog post by Belshaw Accounting, featuring an American flag, piggy bank, and stacked coins

If you have a child under 18 — or a grandchild, niece, or nephew — there's a new tax-advantaged account you need to understand.

It's called a Trump Account. Contributions opened on July 4, 2026, and the accounts are live now.

Here's the plain-English breakdown.

What Is a Trump Account?

A Trump Account is a new custodial-style traditional IRA for minors — owned by the child but managed by an adult — created under federal law in 2025. Think of it like a head start on retirement savings, but for your kids.

The accounts function similarly to an IRA, with a parent or guardian managing things until the child turns 18. After that, traditional IRA rules generally apply.

Who Qualifies?

Any child under 18 with a Social Security number is eligible. You don't have to be a newborn to get one — any minor qualifies.

The $1,000 Government Seed Money

For children born between January 1, 2025, and December 31, 2028, who are U.S. citizens with a valid Social Security number, the federal government will make a one-time $1,000 pilot contribution to their Trump Account.

To claim it, families need to file IRS Form 4547, which could have been filed with their 2025 federal income tax return or can be filed separately at any time, or families can elect participation through the Treasury's online portal at trumpaccounts.gov.

How Much Can You Contribute?

Anyone — family, friends, or employers — can contribute to a Trump Account, subject to an aggregate annual limit of $5,000 per child for 2026 and 2027 (indexed for inflation after 2027). That $5,000 is the total from all contributors combined, not $5,000 per person.

So if grandma puts in $3,000, mom and dad can only add $2,000 more that year. Plan accordingly.

The Employer Angle: A New Benefit for Business Owners

Employers can contribute up to $2,500 per year to a Trump Account for an employee or the employee's dependent through a Trump Account Contribution Program (TACP).

Those employer contributions are generally excludable from the employee's income, but they count toward the $5,000 annual limit. This could become a meaningful employee benefit — something to think about if you're looking to attract and retain good people.

Where Does the Money Get Invested?

The funds in Trump Accounts must be invested in certain mutual funds or exchange-traded funds that track the S&P 500 or another index of primarily American equities. No picking individual stocks. No leverage. Low-cost, broad-market index funds only.

When Can the Money Come Out?

Until the child reaches age 18, withdrawals are generally prohibited. On January 1 of the year the beneficiary turns 18, the account transitions and is thereafter treated largely as a traditional IRA in the beneficiary's own name, subject to standard IRA rules.

This is long-term money. Plan it that way.

One Caution: The Gift Tax Question Is Still Open

Section 530A does not expressly address the gift and generation-skipping transfer tax consequences of contributions. Because amounts in a Trump Account generally cannot be accessed until the child reaches age 18, commentators have questioned whether contributions could be treated as gifts of a future interest. The issue is currently unresolved. Until there is a fix, the safe approach is to treat every contribution as a taxable gift and file a Form 709 as appropriate.

This is exactly the kind of detail that doesn't make headlines — but can surprise you later. If you're planning significant contributions, let's talk first.

What Should You Do Right Now?

If you have an eligible child (born 2025–2028), file Form 4547 to lock in the $1,000 seed contribution. You can do it at trumpaccounts.gov or ask us to help you navigate it.

If you're a business owner thinking about offering Trump Account contributions as an employee benefit, that conversation is worth having now — before your 2027 benefits planning window closes.

"The questions you don't ask matter more than the ones you do." Trump Accounts are new enough that most people haven't started asking the right ones yet. We have.

Book 15 Minutes With Paul or call us at (727) 916-7410. Let's make sure your family and your business are positioned correctly before year-end.

Paul Belshaw | Belshaw Accounting Tax and Advisory Services LLC | Holiday, FL