The basic rules for who can open a Trump Account

A Trump Account is a tax-advantaged savings account for a child's education or other may have access to expenses. To open one, you need to be the child's parent, legal guardian, or another adult with a relationship to the child — the IRS does not restrict who can contribute. The child must have a valid Social Security number and a U.S. address. There is no income limit, no age limit for the account owner, and no minimum deposit required to start.

The child can be any age when you open the account, though the account is most useful for younger children because the money has more time to grow tax-free. Once the child turns 18, they can take control of the account themselves, though some states allow the account to stay open into the child's twenties depending on the plan rules.

You do not need to be a U.S. citizen to open a Trump Account, but you will need an Individual Taxpayer Identification Number (ITIN) if you do not have a Social Security number. The child must be a U.S. citizen, national, or resident alien with a valid Social Security number.

Key Takeaways

  • Any adult — parent, grandparent, aunt, uncle, or family friend — can open a Trump Account for a child who has a Social Security number and a U.S. address.
  • There is no income limit, no minimum deposit, and no restriction on how many people can contribute to the same child's account.
  • The account owner does not have to be related to the child, though some state plans may have their own rules about who can open an account.
  • The child must be a U.S. citizen, national, or resident alien to have a Trump Account in their name.
  • Once the child turns 18, they can take over management of the account, though the exact age varies by state plan.

Who can contribute money to a Trump Account

Anyone can put money into a Trump Account — parents, grandparents, aunts, uncles, family friends, or even the child themselves if they have earned income. There is no limit on the number of people who can contribute to the same account, and each person can give as much as they want in a single year without triggering federal gift tax, as long as they stay within the annual gift tax exclusion (which varies by year and is set by the IRS).

If you are not the account owner but want to contribute, you can usually do so by sending money directly to the account or by asking the account owner to add you as an authorized contributor. Some state plans allow you to set up automatic contributions from your bank account. Check with the specific plan to see what methods they accept.

Contributions are made with after-tax dollars — you do not get a tax deduction for putting money in. However, the money grows tax-free, and withdrawals for may have access to education expenses are not taxed, which is the main benefit of the account.

Income and asset limits that do not apply

Trump Accounts have no income limit. Your household income does not matter, and you will not be asked to prove how much you earn. This is different from some other education savings programs that phase out benefits for higher earners.

There is also no asset limit. You can have other savings, investments, or property and still open and contribute to a Trump Account. The account itself does not count against you for means-tested programs like Medicaid or SNAP, though some state plans may have different rules — check your specific plan's documentation.

State-specific rules that may affect you

Most Trump Accounts are run by individual states, and each state plan sets its own rules about who can open an account and how much you can contribute per year. Some states allow non-residents to open accounts in their plan; others restrict accounts to state residents only. A few states do not offer a Trump Account at all.

Before you open an account, check whether your state has a plan and what the residency rules are. You can find your state's plan through the College Savings Plans Network or by searching "[your state] Trump Account." If your state does not have a plan, you can usually open an account in another state's plan instead.

Some state plans also have rules about who can be the account owner — for example, a few require the account owner to be a parent or legal guardian rather than allowing any adult. These rules are less common but do exist, so confirm with your state plan before you start.

What happens if the child does not go to college

If the money in the account is not used for may have access to education expenses, the earnings (but not the contributions) are subject to income tax and a 10 percent penalty. The contributions themselves can always be withdrawn tax-free, regardless of how they are used.

However, there are ways to avoid the penalty. If the child receives a scholarship, you can withdraw an amount equal to the scholarship without penalty (though you still pay tax on the earnings). If the child attends a U.S. military academy, you can withdraw funds penalty-free. Some states also allow you to transfer the account to a sibling or other family member without penalty.

In 2024, new rules also allow you to roll unused Trump Account funds into a Roth IRA for the child, up to certain limits, without triggering the penalty. This is a relatively new option, so check with your plan to see if they offer it.

How to verify your information before opening an account

Before you open a Trump Account, gather the child's Social Security number, date of birth, and current address. You will also need your own Social Security number or ITIN and your address. Have a bank account or payment method ready so you can make your first contribution.

If you are opening the account online, the plan will verify your identity and the child's information electronically. If you are opening by mail, you may need to provide copies of documents like a birth certificate or Social Security card. The plan will tell you what they need.

Double-check that the child's name and Social Security number are spelled correctly on the account, because errors can cause problems later when you try to withdraw money or report the account on tax forms.

Frequently Asked Questions

Can a grandparent open a Trump Account for a grandchild?

Yes. Grandparents can open and contribute to a Trump Account for a grandchild without any restriction. The child must have a Social Security number and a U.S. address, but the grandparent does not need to be the legal guardian or have any formal custody arrangement.

What if the child does not have a Social Security number yet?

You can apply for a Social Security number through the Social Security Administration before opening the account. Once the child has a number, you can open the account. Some plans allow you to open an account and add the Social Security number later, but this varies by state plan.

Can I open a Trump Account if I am not a U.S. citizen?

Yes, if you have an ITIN. The child must be a U.S. citizen, national, or resident alien, but the account owner does not have to be. You will need to provide your ITIN instead of a Social Security number when you open the account.

Is there a maximum age for the child to have a Trump Account?

There is no federal age limit. The child can be any age when you open the account. However, once the child turns 18 or 21 (depending on the state plan), they typically take control of the account. Some plans allow the account to stay open into the child's twenties if money remains.

Can I open a Trump Account if I already have other savings accounts for the child?

Yes. Having a Trump Account does not prevent you from opening other savings accounts, investment accounts, or education savings programs. You can use multiple accounts to save for different goals or to maximize tax benefits.