Background

The One Big Beautiful Bill Act (OBBB) established the Trump account, a tax-advantaged account that can be opened on behalf of eligible individuals under age 18. A Trump account is a type of individual retirement account (IRA) with special rules regarding contributions, investments, distributions, and reporting that apply during the “growth period” – the period ending on December 31 of the calendar year in which the account beneficiary attains age 17.

The OBBB also provided for Treasury to make one-time pilot contributions of $1,000 to Trump accounts opened on behalf of U.S. citizen children born in 2025 – 2028. In addition to pilot contributions, Trump accounts can be funded via nonprofit and government qualified general contributions, employer contributions, qualified rollover contributions, and contributions from the accountholder’s parents or others.

To dig deeper, visit the original article on the Thomson Reuters blog.