Trump Accounts are a new type of savings vehicle designed to help families build long-term financial resources for children. Structured as a special type of traditional IRA, these accounts have specific rules governing eligibility, contributions, investments, and withdrawals.
Who Can Have a Trump Account?
Generally, a child may have an initial Trump Account established if the child:
- Is under age 18 at the end of the year the election is made;
- Has a valid Social Security number issued before the election; and
- Has not already had a Trump Account election filed on their behalf.
For an election made in 2026, the child generally must have been born after December 31, 2008. A parent, legal guardian, adult sibling, or grandparent may be authorized to establish an initial account, depending on the applicable priority rules.
The $1,000 Federal Pilot Program Contribution
One of the most significant features of the program is the potential $1,000 contribution from the U.S. Treasury.
Generally, to qualify, a child must:
- Be born after December 31, 2024, and before January 1, 2029;
- Be a U.S. citizen;
- Have a valid Social Security number;
- Have not previously had a pilot program contribution election processed; and
- Meet the applicable qualifying-child requirements.
The $1,000 contribution is separate from the ability to establish a Trump Account. A child may be eligible for an account even if they do not qualify for the federal pilot contribution.
How Do the Accounts Work?
Trump Accounts have a special growth period that generally begins when the account is established and ends December 31 of the year before the child turns 18.
During this period:
- Investment choices are limited to eligible investments, generally certain mutual funds and ETFs tracking primarily U.S. companies.
- Certain contributions are subject to a $5,000 annual limit, with adjustments possible after 2027.
- Certain employer contributions are generally subject to a separate $2,500 limit.
- Withdrawals are highly restricted.
Once the growth period ends, most traditional IRA rules generally apply. Certain early distributions may be subject to the traditional IRA 10% additional tax unless an exception applies.
What Should Parents Do?
Families should check TrumpAccounts.gov for the latest information regarding online elections and account activation.
The Bottom Line for Michigan Families
A Michigan ZIP code does not determine whether a child can have a Trump Account or qualify for the federal $1,000 pilot contribution. The ZIP-code criteria parents may have heard relate to the $250 Dell contribution, a separate $250 private contribution pledged by Michael and Susan Dell. That contribution has additional eligibility requirements, including geographic and income criteria. As a result, some higher-income ZIP codes may not qualify for the additional $250 Dell contribution but are not excluded from the overall Trump Account program or $1,000 pilot contribution.
