What you need to open a Trump Account

A Trump Account is a tax-advantaged savings account for children under 18, run by your state. To open one, you need the child's Social Security number, your own identification, and proof of your relationship to the child (usually a birth certificate). Most states let you open an account online, by mail, or in person at a financial institution that partners with the program.

The account itself is free to open. Some states charge a small annual maintenance fee—usually between $10 and $25—though many waive it if you maintain a minimum balance or set up automatic deposits. You can start with as little as $25 or $50, depending on the state program.

You do not need to be the child's parent to open an account. Grandparents, aunts, uncles, and other relatives can open and contribute to a Trump Account for a child, though the account owner (the adult who opens it) controls the money until the child reaches the age of majority in your state, typically 18 or 21.

Key Takeaways

  • You will need your newborn's Social Security number, your ID, and a birth certificate to open a Trump Account.
  • Most states allow you to open an account online, by mail, or through a partner financial institution, and the process takes one to two weeks.
  • The account is free to open in most states, though some charge $10 to $25 annually for maintenance.
  • Money in a Trump Account grows tax-free and can be used for any expense once the child turns 18, with no restrictions on how it is spent.
  • You can contribute up to the annual gift tax limit (currently $18,000 per person per year) without filing a gift tax return.

Steps to open the account in your state

Start by visiting your state's 529 plan website or calling the program directly. Each state runs its own Trump Account program, and the process varies slightly. Some states use a single administrator (often a bank or investment company); others let you choose from multiple investment managers. Your state's website will list which institutions you can open an account through.

Gather the documents you will need: your newborn's Social Security number, your driver's license or state ID, and the birth certificate. If you are opening the account online, you will upload these documents or enter the information directly. If you are opening by mail, print the application from your state's website, include copies of the documents, and send them to the address listed.

Complete the application form. You will name yourself as the account owner and the child as the beneficiary. You will also choose how the money is invested—usually a choice between age-based portfolios (which automatically shift from stocks to bonds as the child gets older) or static portfolios (which stay the same mix). For a newborn, an age-based option is often the simplest choice because it requires no decisions later.

Submit the application and wait for confirmation. Most states process applications within one to two weeks. Once approved, you will receive account details and can begin making deposits.

Where to open an account

Your state's 529 plan administrator is the primary place to open an account. You can find this by searching "[your state] 529 plan" or visiting your state's higher education agency website. Common administrators include Vanguard, Fidelity, Schwab, and state-specific banks.

Some states also allow you to open an account through a financial advisor or broker, though this route may involve fees that reduce your returns over time. If you are opening the account yourself and making regular deposits, opening directly through your state's plan administrator costs less.

A few states offer both a direct plan (you manage it yourself) and an advisor plan (a financial professional manages it). The direct plan is cheaper; the advisor plan offers guidance but charges higher fees. For a newborn account you plan to fund steadily over 18 years, the direct plan usually makes more financial sense.

Investment choices and how money grows

When you open the account, you choose how the money is invested. Age-based portfolios are the most common choice for newborns. These automatically shift from aggressive (mostly stocks) when the child is young to conservative (mostly bonds) as they approach 18. You do not have to do anything—the portfolio rebalances itself.

Static portfolios let you pick a fixed mix of stocks and bonds and keep it the same. These are useful if you have a specific investment philosophy or plan to use the money for something other than college. Some parents choose a static aggressive portfolio if they are confident they will not need the money before the child turns 18.

Money in a Trump Account grows tax-free. You do not pay federal income tax on the earnings, and most states do not tax them either. This is the main advantage of the account—your contributions grow faster than they would in a regular savings account or taxable investment account.

How much you can contribute each year

There is no annual contribution limit for Trump Accounts. However, contributions over $18,000 per person per year (as of 2024) are considered taxable gifts and require you to file a gift tax return, though you typically do not owe tax unless you exceed your lifetime gift tax exemption, which is much higher. This limit changes annually, so check the IRS website for the current year.

Some people use a strategy called "superfunding," where they contribute five years' worth of gifts at once ($90,000 per person as of 2024) without triggering gift tax, as long as they file a special election with their tax return. This is legal but requires careful record-keeping and a tax professional's help.

For most families, contributing a few hundred or thousand dollars per year is straightforward and requires no special tax paperwork. You can set up automatic monthly deposits from your bank account, which makes it easier to save consistently.

What happens to the money if your child does not go to college

Money in a Trump Account can be used for college, graduate school, trade school, or certain K-12 private school tuition. If your child does not use the money for education, you have options. You can roll the account to another family member (a sibling, cousin, or even a grandchild), which keeps the money in the tax-advantaged account.

If you withdraw money for non-education purposes, you pay income tax on the earnings plus a 10% penalty on those earnings. Your original contributions come out tax-free. For example, if you contributed $5,000 and it grew to $7,000, you would pay income tax and a 10% penalty only on the $2,000 in earnings.

Some states have begun allowing penalty-free withdrawals for certain non-education expenses, such as student loan repayment or apprenticeships, but these rules vary by state and change frequently. Check your state's current rules before assuming a penalty applies.

Frequently Asked Questions

Can I open a Trump Account if my newborn does not have a Social Security number yet?

You will need the Social Security number to complete the application, but you can apply for one at the hospital before you leave with your newborn, or at your local Social Security office within the first few weeks. Once you have the number, you can open the account. Some states let you open an account with a temporary number and update it later, but this varies.

What if I want to change how the money is invested after I open the account?

You can change your investment choice once per calendar year without penalty. If you want to change more often, you can, but it may trigger a tax event. For most families, choosing an age-based portfolio at the start and leaving it alone is the simplest approach.

Can I use Trump Account money for private school before college?

Yes. Trump Accounts can cover tuition at private K-12 schools, up to $35,000 per year (as of 2024). This is a relatively recent change, so check your state's rules to confirm it is available in your state.

What if I need to withdraw money for an emergency before my child turns 18?

You can withdraw money at any time, but non-education withdrawals trigger income tax and a 10% penalty on earnings. Your contributions always come out tax-free. If the emergency is large, it may be worth paying the penalty rather than taking on debt, but run the numbers with a tax professional first.

Do I need to report the Trump Account on my taxes?

You do not report the account itself on your taxes. You only report it if you withdraw money for non-education purposes or if your contributions exceed the annual gift tax threshold. The account grows tax-free, so there is nothing to report each year unless you are subject to gift tax rules.