“Trump Accounts” Overview
Trump Accounts were created in 2025 under federal “Working Families Tax Cut” legislation. These accounts are a long-term savings account for children under age 18, designed to help build savings over time. When an account is opened, the account is owned by the child and managed by an adult.
Please know, additional guidance is expected on how these accounts will be treated in related to resources by different agencies.
Contributions
- Up to $5,000 (adjusted for inflation) can be contributed per year per child, and contributions are invested in low-cost index funds.
- A federal pilot program provides a $1,000 contribution to the Trump Accounts of eligible children born between January 1, 2025, and December 31, 2028.
- The entire value of the account is not considered a resource for SSI purposes.
- First-party and third-party contributions made directly to the account are generally not income; however, an account beneficiary cannot avoid income counting by direct depositing funds into the account.
- Direct deposit of Social Security benefits into the account are not allowed.
Withdrawals
- Funds are held for future use, and not able to be used to provide for the child’s current needs.
Reporting to Social Security
- If an account is opened, report the existence of the account to Social Security when completing paperwork. It would be recorded under “Other Resources.”
ABLE Rollovers
- The account is not counted for SSI during the “growth period” (through age 17).
- Social Security has already noted that Trump Accounts should be considered around ages 17 and 18 and looking at ABLE rollover language so funds are not counted as a resource. Additional details are expected.
Sources and Additional Information
For additional information related to these accounts please click the links below:
