👨👩👧👦 Trump Accounts: Key Terms for Contributions
US TAX CIS🤔 Who is eligible to make contributions to a Trump Account (TA)?
The list is almost unlimited: parents, grandparents, other family members, friends, employers, nonprofit organizations, local government authorities.
There are no income (AGI) requirements for contributing to a TA, unlike those for an IRA.
⚠️ Contribution Rules and Limits
In 2026–2027, up to $5,000 can be contributed to a single TA per year – from 2028, this amount will be indexed for inflation. This limit does not include contributions from nonprofit organizations and government entities (including the $1,000 federal starting grant).
✅ Contributions to a TA are allowed until the year the child turns 18.
❌ However, it is important to note that contributions to a TA, unlike IRA contributions, are not deductible on the tax return.
👨💼 Employer Contributions to a TA
• An employer can contribute up to $2,500 per year to a TA for each employee – regardless of the number of children.
• Employees will have the option to direct part of their income straight to a TA.
❗️ Contributions made by the employer to the TA will not be included in the employee's total income.
📍 Example
If you have 2 children, your employer can contribute $1,250 per TA for each child (for a total of $2,500). In this case, you can contribute up to $3,750 more to each account to stay within the $5,000 annual limit for a single TA.
📈 Investments within a TA can only be made in certain assets (typically U.S. mutual funds and ETFs based on major U.S. indices).
🔜 In the next post about the TA, we will cover the nuances and restrictions regarding withdrawals from the account.
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