Military Finances 101: Trump Accounts are Here. Are You Ready?

By Tonia Peasley, ChFC®, AFC®

Not only was July 4th, 2026, America’s 250th Birthday, but it was also the official launch date of Trump accounts. These accounts will provide opportunity to jump-start a child’s financial future and to build Generational Wealth. Eligible accounts can start receiving contributions on this date and after. Final regulations are still pending.

Regardless of your political values, put aside the name of the account and let’s take a further look into what these accounts are all about. The account statements will reflect the account as a “Trump Account” however, this is like ROTH IRA that was named after a person as well. Besides, at age 18, the account will then be converted into an IRA or, after taxes are paid on the funds, the account can be converted to a ROTH IRA in the child’s name.

Children Born between Jan 1, 2025, and December 31, 2028, are eligible for a one-time $1,000 treasury contribution. The Eligible child is titled the “account beneficiary,” similar to 529 accounts. Pilot contributions are set to be deposited on or after 7/4/2026. Children under age 18 can still be eligible to open an account and it may still be a benefit without the pilot contribution of $1,000…read on to learn more.

Who can open an account?

Children under 18 (child needs to have a Social Security number established). Accounts are established on their behalf by a parent or guardian. Funding can start when a child is born and has been issued a Social Security number. Accounts are designed to have long-term tax-deferred growth.

How much can be contributed:

Total combined contribution of $5,000 per child can be contributed by parents, family members, grandparents. Employers can contribute to the account as well, but the employer portion is limited to $2,500 of the limit per year. Family conversations will be required for whoever is contributing and how much family members are contributing. Guidance is still forthcoming on how over-contributions will be handled.

How are the accounts invested?

Invested in low-cost index funds or ETFs designed for long-term growth. Tax deferred growth, taxes will be assessed on withdrawal.

Where will Trump accounts be custodied?

Currently, Robinhood has been identified as a trustee of the account, with Bank of NY as the Financial agent of these accounts.

How and when can funds be accessed?

Funds cannot be accessed before age 18, after that, funds can be used for education, purchasing a car or first home purchase, or starting a business. At age 18, the account is then treated like a Traditional IRA, and withdrawals will be taxed at ordinary income rates at time of withdrawal.

Who Governs the Trump account?

Two separate publications govern the accounts. IRS pub 530A (Governs the account, contributions, elections). IRS pub 6434 (Governs the Pilot Contributions).

How do you set up a Trump account?

Two steps need to be completed. Open the account and complete IRS Form 4547 electing for the $1,000 pilot contribution (if eligible).

Accounts must be established BEFORE January 1st of the year the child attains age 18. After this date, a Trump account cannot be newly established.

Step 1: Before you can complete the following steps to activate a new Trump Account, you must have already completed the IRS Form 4547 for your eligible child or children as the parent, legal guardian, or other authorized individual. If you filed Form 4547 with your 2025 taxes, you are all set. IRS Form 4547 provides the opportunity to make the election for the pilot contribution. The Treasury provides the pilot contribution. IRS processes Form 4547 (verifying the SSN) and then approves the account. If you did not complete Form 4547 with your tax return, you can access it here: https://www.irs.gov/trumpaccounts

Step 2: Download the Trump Account mobile app or go to https://trumpaccounts.gov/ to log in, set up and manage a Trump Account. You will register and then receive an invite to complete the process from no-reply@trumpaccounts.treasury.gov. Accounts must be set up and verified to receive a pilot contribution.

Some of the specifics we think are valuable:

An advantage to these accounts is that they can be converted into a ROTH for the child without the requirement of earned income to open and fund the account. At the time you convert the account to a ROTH, the taxes would be paid at the child’s ordinary income rate.
Trump accounts have much better use availability than a 529. A Trump account can be used for just about anything, 529 accounts are limited to education expenses.
Once a child starts earning income, they can make their own contributions to the account. This is a great way to develop good savings habits early in life.
Employers can choose to contribute to the Trump accounts, supporting savings and financial readiness. Employer contributions may be part of an employer's “Cafeteria plan” so that employees can elect to make pre-tax contributions to Trump accounts. Employer contributions are tax deductible to the employer.

Military Finances are Different

Trump accounts apply to all eligible Americans. That isn't always the case. Many times, active and retired servicemembers have unique tax and other benefits. That is why we think Active and Retired Senior Military Officers and NCOs should work with someone who deals with those issues each and every day. If you'd like to find out how we work with people just like you, use the button below to schedule a free, initial consultation.

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