The One Big Beautiful Bill Act introduced Trump Accounts. This is a special type of account that is only allowed for children under age 18. For children born in 2025-2028, the government will actually fund these accounts with a $1,000 stipend.
You are unable to open a Trump Account before July 4, 2026, and here are some of the key details:
You are able to contribute up to $5,000 into a Trump Account and this amount will be indexed beginning in 2028.
An employer may contribute up to $2,500 as part of the $5,000 limit. This contribution is not income to the employee. Self-employed farmers are not considered an “employer” for purposes of this rule, therefore, they are not allowed the $2,500 deduction.
Certain non-profits and governmental agencies can also contribute to the account, and those amounts would be on top of the $5,000 limit.
The contribution is not deductible by the parents.
The account can only invest in inexpensive indexed mutual funds or ETFs with expense fees of less than .1% and must be invested in a broad array of stocks such as an S&P Fund.
Once the child reaches age 18, the Trump Account becomes a regular IRA and will be subject to the normal IRA restrictions.
So why might the Trump Account be a consideration for a farm family.
