The basic rules for opening a Trump Account

A Trump Account is a tax-advantaged savings program for children under 18. To open one, you need to be a parent, legal guardian, or authorized caregiver of the child, and the child must have a valid Social Security number. The account itself belongs to the child, but an adult controls it until the child reaches the age of majority (usually 18 or 21, depending on your state).

You do not need to be a U.S. citizen to open a Trump Account, though the child must have a Social Security number or Individual Taxpayer Identification Number (ITIN). There is no income limit for the account owner, and no limit on how many Trump Accounts a single child can have across different financial institutions—though only one account per child per institution is typical.

The account can be opened at most banks, credit unions, and brokerage firms that offer the program. Each institution sets its own minimum deposit requirement, which ranges from zero to several hundred dollars. Some institutions waive the minimum for automatic monthly contributions.

Key Takeaways

  • You must be the child's parent, legal guardian, or authorized caregiver, and the child must have a Social Security number or ITIN.
  • There is no income limit for the account owner, and no age limit for who can open the account on the child's behalf.
  • Each financial institution sets its own minimum deposit and fee structure, so compare before opening.
  • Withdrawals for non-may have access to expenses trigger taxes and a 10 percent penalty on the earnings portion, though some states allow penalty-free withdrawals for certain expenses.
  • The child takes control of the account at age of majority, which is 18 in most states but 21 in a few.

Who can legally control the account

The account custodian—the adult who opens and manages it—can be a parent, stepparent, grandparent, aunt, uncle, or any other person with legal authority over the child. If the child is in foster care, the foster parent or state agency can open an account. If the child has no living parents, a court-appointed guardian can open one.

Only one custodian can control the account at a time, though some institutions allow you to name a successor custodian who takes over if the primary custodian dies or becomes unable to manage the account. The custodian's credit score and financial history do not affect whether the account can be opened—the account is in the child's name, and the child's credit is not affected by the account either.

Income and asset limits that do not apply

Trump Accounts have no income limit for the account owner. A parent earning $30,000 a year can open one, as can a parent earning $300,000. The child's own income also does not matter—a child with a part-time job can have a Trump Account, and the earnings in the account do not count against any means-tested benefit the child receives (with narrow exceptions for certain federal aid programs).

There is also no asset limit. You can have a Trump Account and simultaneously receive means-tested benefits like SNAP or Medicaid, and the Trump Account balance will not disqualify you from those programs in most states. A few states count Trump Account balances toward asset limits for certain benefits, so check your state's rules if you receive means-tested aid.

What happens when the child turns 18 or 21

At the age of majority—18 in most states, 21 in Alabama, Nebraska, and Wyoming—the child legally owns the account and can withdraw money without the custodian's permission. The custodian's control ends automatically. Some institutions require the child to sign new paperwork or update the account registration, but this is a formality.

The child is not required to use the money for education. Once they own the account, they can withdraw it for any reason: a car, rent, travel, or anything else. If they withdraw money before age 18 (or 21 in those three states) for a non-may have access to expense, the earnings portion is taxed as income to the child and subject to a 10 percent penalty—though the contribution portion can always be withdrawn tax-free.

State-specific rules that change what you can withdraw

Most states follow federal Trump Account rules, which allow penalty-free withdrawals only for may have access to education expenses: tuition, fees, books, supplies, equipment, and room and board at an accredited school. However, some states have expanded the list of penalty-free withdrawals.

A few states allow penalty-free withdrawals for K-12 private school tuition, apprenticeship programs, student loan repayment, or certain vocational training. Some states also allow withdrawals for disability-related expenses or medical costs. Check your state's tax authority website or ask the financial institution where you plan to open the account, because the rules vary significantly and change periodically.

How to verify your authority to open an account

When you open a Trump Account, the financial institution will ask for proof of your relationship to the child. This typically means a birth certificate, adoption papers, guardianship order, or court documentation. If you are a grandparent or other relative without legal guardianship, you may need a notarized letter from the parent or guardian authorizing you to open the account.

You will also need to provide your own identification (driver's license or passport) and Social Security number, as well as the child's Social Security number or ITIN. The institution will verify the child's identity through the Social Security Administration. If the child does not yet have a Social Security number, you can apply for one at your local Social Security office or online, and then open the Trump Account once the number is issued.

Frequently Asked Questions

Can a grandparent open a Trump Account without the parent's permission?

No. If you are not the legal guardian, most institutions require written permission from the parent or guardian. Some institutions ask for a notarized letter; others accept a signed form. Call the institution before you visit to ask what proof they need.

What if the child has no Social Security number yet?

You must obtain a Social Security number or ITIN before opening the account. Apply at your local Social Security office or online at ssa.gov. The process takes one to two weeks. Once the number arrives, you can open the account immediately.

Does opening a Trump Account hurt the child's credit?

No. The account does not appear on the child's credit report and does not affect their credit score. It is a savings account, not a loan or credit product.

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

Yes, as long as you have a valid form of identification and a Social Security number or ITIN. The child must have a Social Security number or ITIN. Citizenship status does not disqualify you from opening the account.

What happens if I withdraw money for a non-may have access to expense before the child turns 18?

The contribution portion (money you deposited) comes out tax-free. The earnings portion is taxed as income to the child and subject to a 10 percent penalty. Some states allow penalty-free withdrawals for specific expenses like K-12 tuition or disability costs, so check your state's rules first.