[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-301859-105":3,"detail-sidebar-cat-1-en-105":81,"doc-detail-301859-en":126},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","trump-accounts-overview-and-policy-considerations","Trump Accounts - Overview and Policy Considerations","","Trump Accounts are a new child-focused traditional IRA created by the 2025 reconciliation law (P.L. 119-21). Contributions begin July 4, 2026, with special rules during the growth period before the beneficiary turns 18, including non-deductible contributions, contribution limits, and diversified index-fund investment requirements. Distributions are generally prohibited during the growth period except ABLE rollovers, while post-growth withdrawals follow traditional IRA taxation and penalty exceptions. The law also establishes a one-time $1,000 refundable credit for eligible children, deposited into the account by the U.S. Treasury.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/template/","Template",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/template/general/","General",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/template/trump-accounts-overview-and-policy-considerations/301859/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/trump-accounts-overview-and-policy-considerations/301859.png","ImageObject",442,249,{"name":42,"@type":43},"Aladdin","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-09-20","2026-09-19",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",5,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"When can savers contribute to Trump Accounts?","Question",{"text":63,"@type":64},"Contributions to Trump Accounts can start on July 4, 2026.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"What are the key rules during the growth period before a beneficiary turns 18?",{"text":68,"@type":64},"During the growth period, contributions are not tax-deductible, annual combined limits apply, investments must be in a diversified U.S. stock index fund with minimized fees, and distributions are generally not allowed except rollovers into an ABLE account.",{"name":70,"@type":61,"acceptedAnswer":71},"How is the one-time $1,000 tax credit handled, and who qualifies?",{"text":72,"@type":64},"The 2025 reconciliation law creates a one-time refundable tax credit of $1,000 per qualifying child, which the U.S. Treasury is to contribute directly to the child’s Trump Account after an authorized individual opens the account. Eligibility requires the child be a U.S. citizen born between January 1, 2025, and December 31, 2028.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},301859,1789785894,{"code":4,"msg":82,"data":83},"success",[84,89,94,99,104,109,114,119,123],{"id":85,"doc_module":22,"doc_module_name":25,"category_name":86,"show_sort_weight":87,"slug":88},11,"Presentations",90,"presentations",{"id":90,"doc_module":22,"doc_module_name":25,"category_name":91,"show_sort_weight":92,"slug":93},12,"Resumes",80,"resumes",{"id":95,"doc_module":22,"doc_module_name":25,"category_name":96,"show_sort_weight":97,"slug":98},14,"Invoices",70,"invoices",{"id":100,"doc_module":22,"doc_module_name":25,"category_name":101,"show_sort_weight":102,"slug":103},15,"Posters",60,"posters",{"id":105,"doc_module":22,"doc_module_name":25,"category_name":106,"show_sort_weight":107,"slug":108},16,"Social Media",50,"social-media",{"id":110,"doc_module":22,"doc_module_name":25,"category_name":111,"show_sort_weight":112,"slug":113},17,"Forms",40,"forms",{"id":115,"doc_module":22,"doc_module_name":25,"category_name":116,"show_sort_weight":117,"slug":118},18,"Letters",30,"letters",{"id":120,"doc_module":22,"doc_module_name":25,"category_name":121,"show_sort_weight":55,"slug":122},21,"Paper Templates","papers-templates",{"id":124,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":4,"slug":125},158,"general-158",{"code":4,"msg":82,"data":127},{"doc_id":79,"user_id":128,"nickname":42,"user_avatar":129,"doc_module":22,"category_id":124,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":135,"language":136,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":12,"update_tm":80,"read_time":140},2336478503145,"https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c","Trump Accounts: Overview and Policy Considerations  \nUpdated June 15, 2026  \nCongressional Research Service  \n[https://crsreports.congress.gov](https://crsreports.congress.gov)[ ](https://crsreports.congress.gov)R48910  \nTrump Accounts: Overview and Policy Considerations  \nTrump Accounts are a new form of traditional individual retirement account (IRA) that the 2025 reconciliation law (P.L. 119-21) created for the benefit of children. Savers will be able to contribute to Trump Accounts starting on July 4, 2026.  \nTraditional IRAs are typically tax-advantaged accounts for individuals who have income from  \nR48910  \nJune 15, 2026  \nBrendan McDermott  \nAnalyst in Public Finance  \nwork to save for retirement. Trump Accounts differ from other traditional IRAs in that they have special rules, described below, that apply prior to the start ofthe year in which a beneficiary reaches the age of 18 (i.e., during the account’s growth period) .  \nContributions to Trump Accounts are allowed from several sources. Anyone can contribute to a child’s Trump Account, although individual contributions during the growth period are not tax-deductible for either the contributor or the beneficiary. Employers can contribute up to $2,500 (adjusted for inflation after 2027) tax-free to the Trump Accounts of employees or their dependents (amount is per employee, per year) . Tax-free contributions are also allowed from state or local governments and from 501(c)(3) tax-exempt organizations, provided the state, locality, or organization contributes an equal amount to the account of each child in a qualified group of either (1) all children, (2) all children in a certain geographic area, or (3) all children born in one or more calendar years.  \nContributions during the growth period are generally subject to an annual combined limit of $5,000 in 2026 (adjusted for inflation after 2027), which is lower than the traditional IRA limit ($7,500 in 2026) . Contributions during the growth period are not limited to the beneficiary’s taxable compensation (as is the case for other traditional IRAs), making saving viable forchildren with little or no income of their own. During the growth period, beneficiaries cannot deduct contributions from their taxable income, whether those contributions are made by themselves or by others. Any income earned within the account (e.g., investment earnings) will not be taxed until withdrawal, similar to other traditional IRAs.  \nDuring the growth period, savings in Trump Accounts must be invested in a diversified index fund of U.S. stocks and must minimize fees and expenses. After the growth period ends, contributions and investments follow the same rules as for other traditional IRAs.  \nDistributions are not allowed during the growth period, except to roll the funds into an ABLE account for disabled individuals. After the growth period ends, distributions follow the same rules as for other traditional IRAs. The amount of the distribution allocable to post-tax contributions from individuals (the beneficiary, parents, etc.) is exempt from tax. Pretax contributions—including from employers, charities, and the government—are taxable at the time of withdrawal as ordinary income. Investment returns on any contribution are subject to tax. Distributions before the beneficiary reaches age 59½ maybe subject to an additional 10% tax, unless an exception applies, following traditional IRA rules. Exceptions include withdrawals for higher education expenses, for the purchase or construction of a first home (up to $10,000), for birth or adoption expenses (up to $5,000 per child), for emergency personal expenses (up to $1,000 per year), for certain medical expenses, and for certain other uses.  \nThe 2025 reconciliation law also created a new one-time refundable tax credit of $1,000 for each qualifying child, which the U.S. Treasury is to contribute directly to the child’s Trump Account once an authorized individual has opened an account on behalf of t","cbCaiiecTcP1fAEx","https://ap.wps.com/l/cbCaiiecTcP1fAEx","pdf",881459,19,"English","# Introduction\n# Description of Trump Accounts\n# Contributions\n## Ordinary Contributions\n## Tax-Advantaged Contributions\n# Eligible Investments\n# Qualified Withdrawals\n## ABLE Account Rollovers\n# Benefits of Trump Accounts and Comparison with Other Types of Accounts\n## Potential Impact of Trump Accounts on Saving Behavior and Wealth\n## Direct Effects of Tax Benefits\n## Impact on Household Savings Rates\n## Distributional Considerations\n## Interactions with Federal Means-Tested Programs","[{\"question\":\"When can savers contribute to Trump Accounts?\",\"answer\":\"Contributions to Trump Accounts can start on July 4, 2026.\"},{\"question\":\"What are the key rules during the growth period before a beneficiary turns 18?\",\"answer\":\"During the growth period, contributions are not tax-deductible, annual combined limits apply, investments must be in a diversified U.S. stock index fund with minimized fees, and distributions are generally not allowed except rollovers into an ABLE account.\"},{\"question\":\"How is the one-time $1,000 tax credit handled, and who qualifies?\",\"answer\":\"The 2025 reconciliation law creates a one-time refundable tax credit of $1,000 per qualifying child, which the U.S. Treasury is to contribute directly to the child’s Trump Account after an authorized individual opens the account. Eligibility requires the child be a U.S. citizen born between January 1, 2025, and December 31, 2028.\"}]","Trump Accounts - Overview and Policy Considerations | PDF",7]