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 bank or credit union that participates in the program.
The account itself costs nothing to set up. Some states charge a small annual fee (usually $10 to $25) to maintain the account, while others charge nothing. You control the account until the child turns 18 or 21, depending on your state's rules.
You do not need to be the child's parent to open one — grandparents, aunts, uncles, and other relatives can open accounts for children they are related to. Some states also let non-relatives open accounts, though the rules vary.
Key Takeaways
- You will need the child's Social Security number, your ID, and proof of relationship (usually a birth certificate) to open an account.
- Most accounts can be opened online or by mail through your state's program administrator, and the setup is free in most states.
- Money you put in grows tax-free as long as it is used for the child's education, and you can withdraw it penalty-free for that purpose.
- Your state's program rules determine the investment options available, annual contribution limits, and what happens to the money when the child turns 18.
Finding your state's Trump Account program
Each state runs its own Trump Account program, so the first step is finding the one in your state. The College Savings Plans Network maintains a directory of all state programs with links to each one. You can also search "[your state name] Trump Account" or "[your state name] 529 plan" to find the official program website.
Once you find your state's program, look for the section on opening an account. Most state websites have a button or link that says "Open an Account" or "get your free guide." This will either take you to an online application or show you how to request a paper form by mail.
If you cannot find your state's program online, call your state's higher education agency or department of education — they administer the Trump Account program and can mail you an application or direct you to the right website.
Gathering documents before you apply
Have these documents ready before you start the application: the child's full name and Social Security number, your full name and Social Security number, your driver's license or state ID, and proof of your relationship to the child. A birth certificate is the most common proof, but adoption papers, guardianship documents, or a court order also work.
If you are opening the account online, you may be able to upload images of these documents directly. If you are applying by mail, make copies (not originals) and include them with your application. Keep the originals for your records.
Some states also ask for your address, phone number, and email. Have these ready so you do not have to stop and look them up mid-application.
Completing the application online or by mail
Most states now offer online applications, which are faster than mailing a form. The online process usually takes 10 to 15 minutes. You will enter your information and the child's information, choose your investment option (if your state offers more than one), and agree to the program's terms. At the end, you will get a confirmation number — save this.
If you apply by mail, download the application from your state's website, fill it out by hand or print it filled in, and mail it with copies of your ID and proof of relationship. Mail applications usually take two to four weeks to process. Include a note with your phone number and email so the program can contact you if something is missing.
Either way, you will receive account information by mail once your application is approved. This will include your account number and instructions on how to make your first deposit.
Making your first deposit and ongoing contributions
After your account opens, you can deposit money whenever you want. Most states let you set up automatic monthly transfers from your bank account, or you can make one-time deposits. Some programs also let you deposit by check or electronic transfer.
Each state sets its own annual contribution limit — most allow $15,000 to $235,000 per child per year, depending on the state and how much has already been contributed. Your state's program website will show your limit and how much you have already contributed in the current year.
You can deposit as little as $25 or as much as your state allows. There is no minimum monthly contribution, so you can skip months if money is tight and pick up again later.
Choosing how the money is invested
When you open the account, you choose how the money will be invested — usually from a list of mutual funds or target-date portfolios. Target-date portfolios automatically shift from stocks to bonds as the child gets closer to college age, which is a common choice for parents who do not want to manage the investments themselves.
Some states offer only one investment option, while others offer dozens. You can usually change your investment choice once per year, or whenever the child reaches a new grade level. Check your state's rules on your program website.
The money grows tax-free, meaning you do not pay federal or state income tax on the earnings as long as the account is open. This is the main advantage of a Trump Account over a regular savings account.
What happens when the child turns 18
Your state's rules determine what happens to the account when the child reaches 18 or 21. In most states, you keep control of the account and the money until the child is ready to use it for education. In some states, the child gains control at 18 or 21, whether or not they are in school.
If the money is used for education — tuition, room and board, books, required equipment, or student loan repayment — there is no tax penalty. If the money is used for anything else, you will owe income tax on the earnings plus a 10 percent penalty on those earnings.
Some states let you transfer unused money to another family member's account (usually a sibling or cousin) without penalty, which is useful if one child does not go to college or does not need all the money saved.
Frequently Asked Questions
Can I open a Trump Account if I do not have a Social Security number?
No, the child must have a Social Security number to open an account. If the child does not have one yet, you can get one from the Social Security Administration before you apply. The process takes a few weeks, so plan ahead if you are opening an account for a newborn.
What if I want to change the investment option after I open the account?
Most states let you change your investment choice once per calendar year, or whenever the child advances to a new grade level. Log into your account online or call your state's program to make the change. Some states charge a small fee for changes beyond the annual limit.
Can I use the money for private school or trade school instead of college?
Yes. Trump Accounts cover tuition and fees at most accredited schools, including private universities, community colleges, and trade or vocational schools. Room and board, books, and required equipment also count. Check your state's program rules for the full list of covered expenses.
What happens if the child gets a scholarship?
If the child receives a scholarship, you can withdraw that amount from the Trump Account without penalty. You will owe income tax on the earnings portion of the withdrawal, but not the 10 percent penalty. Report the scholarship amount to your state's program before you withdraw.
Can I open more than one Trump Account for the same child?
Yes, but your total contributions across all accounts cannot exceed your state's annual limit. If you open accounts in multiple states, the limits combine. Track your total contributions across all accounts to stay within the limit and avoid penalties.