Trump accounts: The details advisors need to know

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they can be opened, managed and eventually used by children as they reach adulthood.Trump accounts can be established either when filing taxes with the new Form 4547 or through the dedicated website, trumpaccounts.gov. A draft version of Form 4547 has already been released for public review.The account itself is owned by the child, while a qualified guardian or family member acts as the custodian. Only one account can be created per child. According to the official website, parents can elect to open an account for eligible children starting with 2025 tax filings or through the online portal set to launch in summer 2026.Once a child reaches 18, the account functions similarly to a traditional IRA.According to the website, account holders are "free to continue letting it grow, or they can withdraw funds right away to use for things like education or a home — with all the tax advantages of a traditional IRA."Withdrawals outside these categories may incur the standard 10% penalty associated with IRAs. Officials are still finalizing rules around withdrawals before the child's 18th birthday.During the press conference, Bessent reiterated that children born between 2025 and 2028 will automatically receive a $1,000 federal grant, which does not count toward the $5,000 annual contribution limit. However, accounts can be opened for any minor, regardless of birth year.Bessent expressed optimism that many young account holders will roll over their funds into retirement accounts once they reach adulthood.While rollovers into traditional retirement accounts are possible, experts caution that contributions with different tax treatments, such as parental deposits versus the $1,000 grant, will need careful tracking.Since the program's announcement in July, companies including BNY Mellon and BlackRock have pledged to match the federal grant for their employees' children. Wealthy philanthropists Michael Dell and Ray Dalio have also made personal contributions.Bessent noted that 20 states are considering additional top-ups, which would not count toward the $5,000 annual limit. Bessent indicated that certain grants could be linked to financial literacy courses, though he offered no further details.The Trump administration plans to "reach out to all the banks to give seminars" on financial literacy, Bessent said. Over time, Bessent argued that Trump accounts will help create "much better consumers of financial products."Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,929.94 -2.11 (-0.03%)Dow 3048,710.97 -20.19 (-0.04%)Nasdaq23,593.10 -20.21 (-0.09%)Russell 20002,534.35 -13.74 (-0.54%)VIX13.60 +0.13 (+0.97%)Gold4,552.70 +49.90 (+1.11%)Trending tickersBTC-USD Bitcoin USD 87,723.50 +313.98 (+0.36%)ETH-USD Ethereum USD 2,941.96 +16.28 (+0.56%)XRP-USD XRP USD 1.87 +0.02 (+1.35%)CVNA Carvana Co. 438.47 -3.10 (-0.70%)SOL-USD Solana USD 123.90 +1.81 (+1.48%)PortfolioSign in to access your portfolioSign inTop gainersELPC Companhia Paranaense de Energia 9.65 +0.79 (+8.92%)PSLV Sprott Physical Silver Trust 26.04 +2.08 (+8.68%)ZETA Zeta Global Holdings Corp. 20.70 +1.59 (+8.32%)CPNG Coupang, Inc. 24.27 +1.47 (+6.45%)XPEV XPeng Inc. 20.78 +1.21 (+6.18%)Top losersRGC Regencell Bioscience Holdings Limited 21.16 -3.44 (-13.98%)FLY Firefly Aerospace Inc. 23.34 -3.70 (-13.68%)TMC TMC the metals company Inc. 6.82 -0.80 (-10.50%)AAOI Applied Optoelectronics, Inc. 37.17 -3.83 (-9.34%)RGTI Rigetti Computing, Inc. 22.38 -2.13 (-8.69%)Most activeNVDA NVIDIA Corporation 190.53 +1.92 (+1.02%)TSLA Tesla, Inc. 475.19 -10.21 (-2.10%)PLUG Plug Power Inc. 2.0700 -0.0300 (-1.43%)ONDS Ondas Holdings Inc. 8.48 -0.65 (-7.12%)NIO NIO Inc. 5.10 +0.19 (+3.87%)Top economic eventsEarnings eventsMy earnings eventsEarnings events