Trump Accounts: A New Way to Jumpstart Savings for Your Grandchildren

A new federal program, known as Trump Accounts, was recently created to help young Americans begin saving and investing early in life. For many of our clients, this has raised an important question: Is this something my children or grandchildren should be taking advantage of?

Here’s a simple overview you can (and should) share with your family.

What Are Trump Accounts?

Trump Accounts are tax-deferred investment accounts for children under age 18, created as part of the 2025 “One Big Beautiful Bill” tax law. Parents can open an account beginning in 2026, and the money is invested automatically in low-cost U.S. stock index funds.

The key benefits of Trump Accounts:

• Babies born from 2025 to 2028 will receive a $1,000 government contribution once their Trump Account is opened and claimed.
• Any child under 18 can still open an account, but only those born in the eligible window receive the $1,000.

Money cannot be withdrawn until age 18. At that point, the account transitions to an IRA-like structure. Funds can be used for college, a first home, starting a business, or kept invested for long-term growth.

The Dell Donation: An Extra Boost for Millions of Kids

In addition to the federal deposit, Michael and Susan Dell of Dell Technologies have pledged $6.25 billion to add a $250 contribution to Trump Accounts for roughly 25 million U.S. children.

What Children Benefit from the Dell Donation?

If children fit the following criteria, they will benefit from the Dell Donation:

• Are age 10 or younger
• Did not qualify for the $1,000 federal deposit (born before 2025)
• Live in ZIP codes with median incomes below $150,000 (which includes most communities nationwide)

This means many of today’s grandchildren could receive a free $250 contribution simply by opening an account.

Trump Accounts vs. 529 Plans

Both Trump accounts and 529 plans can play a role in saving for a child’s future, but they serve different purposes:

529 Plans

Below are some hallmarks of 529 plans:

• Best for education savings
• Withdrawals for education are tax-free
• Higher contribution limits

Trump Accounts

Below are some hallmarks of Trump Accounts:

• Designed for general long-term goals
• Growth is tax-deferred, but withdrawals are taxed
• More flexible: can be used for college, housing, business, or kept invested into adulthood
• A great value because of the free $1,000 or $250 deposits

For many families, Trump Accounts are a complement, not a replacement, for a 529 plan.

How Retirees Can Help Grandchildren Benefit from Trump Accounts

Many grandparents will play an important role in making sure Trump Accounts are opened and funded. Here are simple ways to support your family:

• Make sure your children know about the free $1,000 or $250. These benefits must be claimed; families will not receive them automatically.
• Offer to help with the application once enrollment opens in 2026.
• Coordinate contributions with other savings tools (529 plans, custodial accounts, or trusts), based on your family’s goals.

Final Thoughts

Trump Accounts won’t replace traditional planning tools, but they are a valuable new opportunity, especially with the support of Dell-funded contributions. For many retirees, they offer a meaningful way to support grandchildren and help them start adulthood on a stronger financial footing.

If you’d like help determining how Trump Accounts fit into your family’s overall gifting or legacy plan, Peterson Wealth would love to help guide you.