What you need to open a Trump account

A Trump account is a tax-advantaged savings account for a child's education, opened by a parent or guardian. To open one, you need the child's Social Security number, your own identification and tax ID, and a choice of financial institution—either a bank, brokerage firm, or investment company that offers these accounts. You do not need the child's permission or signature.

The account itself takes 15 minutes to an hour to set up online or in person, depending on the institution. The real decision is which institution to use and what investments to hold inside the account, since those choices affect how much your money grows over time.

Key Takeaways

  • You need your child's Social Security number, your own ID, and a choice of financial institution to open the account.
  • Most banks, brokerages, and investment companies offer Trump accounts, and you can open one online in under an hour.
  • The account is owned by the child but controlled by you until they reach the age of majority in your state, typically 18 or 21.
  • Money in the account grows tax-free as long as it is used for education expenses; withdrawals for other purposes trigger taxes and a penalty.

Gather your documents before you start

Have these items ready before you contact a financial institution: your child's full name and Social Security number, your own full name and Social Security number or tax ID, your current address, and your phone number and email. If you are opening the account online, you may also need to upload a photo ID or answer security questions to verify your identity.

If your child does not yet have a Social Security number, you can obtain one through the Social Security Administration. The process takes about two weeks by mail or can be done in person at a local Social Security office if you have a birth certificate and proof of citizenship or legal residency.

Choose a financial institution

Trump accounts are offered by most major banks (Wells Fargo, Chase, Bank of America), online brokerages (Fidelity, Vanguard, Charles Schwab), and investment companies (Merrill Edge, E*TRADE). Each institution sets its own minimum deposit, investment options, and fees. Some require as little as $25 to open; others require $500 or more.

Before choosing, compare the investment options available—some institutions offer only mutual funds, while others offer individual stocks and bonds. Also check the annual fees: some charge nothing, while others charge $25 to $50 per year. A few institutions waive fees if you maintain a minimum balance or set up automatic deposits.

If you already bank or invest with an institution, opening a Trump account there is often simpler because they already have your information on file. If you are starting fresh, an online brokerage or your child's school may recommend a low-cost option.

Open the account online or in person

Most institutions let you open a Trump account entirely online. Go to the institution's website, find the Trump account option (sometimes labeled "Education Savings Account" or "Custodial Account"), and follow the application. You will enter your information, your child's information, choose your investment options, and set up your initial deposit. The account is usually active within one to three business days.

If you prefer to open the account in person, visit a local branch or office. Bring your ID, your child's Social Security card or birth certificate, and proof of address (a utility bill or lease). A representative will complete the paperwork and may help you choose investments. In-person accounts sometimes open the same day.

Make your first deposit and choose investments

Your first deposit can be as small as the institution's minimum (often $25 to $100) or as large as you want. You can deposit by bank transfer, check, or credit card, depending on the institution. Some institutions require the first deposit before the account opens; others let you open the account first and deposit later.

Once the account is open, you choose how the money is invested. Common options include age-based portfolios (which automatically shift from stocks to bonds as your child gets older), individual mutual funds, or a mix of stocks and bonds you select yourself. If you are unsure, many institutions offer a default option or a questionnaire to help you choose based on your timeline and risk tolerance.

Set up ongoing deposits if you plan to save regularly

You do not have to make regular deposits, but many parents do. Most institutions let you set up automatic monthly transfers from your bank account to the Trump account. This is often called an automatic investment plan or recurring deposit. You can change or stop the automatic deposits at any time.

Setting up automatic deposits has two practical benefits: you do not have to remember to deposit manually, and some institutions waive annual fees if you maintain automatic deposits of a certain amount (often $50 or $100 per month). Check your institution's fee schedule to see if this applies.

Understand what happens to the money

The account is owned by your child but controlled by you until they reach the age of majority in your state—usually 18 or 21. You decide when and how the money is spent. If the money is used for may have access to education expenses (tuition, fees, books, room and board at an accredited school), the growth is tax-free and you can withdraw it without penalty.

If you withdraw money for a non-education expense, you owe income tax on the growth plus a 10 percent federal penalty. For example, if you deposited $5,000 and it grew to $6,000, you would owe income tax on the $1,000 gain plus a $100 penalty. The original $5,000 you deposited is never taxed. Some states also impose their own penalties or tax consequences, so check your state's rules.

Frequently Asked Questions

Can I open a Trump account if I do not have a Social Security number?

No. You and your child both need Social Security numbers to open the account. If your child does not have one, contact the Social Security Administration to apply. The process takes about two weeks by mail.

What if I want to change the investments in the account later?

You can change your investments at any time by logging into your account online or calling the institution. There is usually no fee to move money between investment options within the same account. Some institutions limit how often you can change investments (for example, once per calendar year), so check your account agreement.

Can I open more than one Trump account for the same child?

Yes. You can open accounts at multiple institutions if you want to spread your savings or take advantage of different investment options. However, the total amount you can contribute per year is limited by federal law—currently $18,000 per person per year (or $36,000 if both parents contribute). Check the IRS website for the current limit.

What happens to the account if my child does not go to college?

You can withdraw the money, but you will owe income tax on the growth plus a 10 percent federal penalty on the earnings only. The money you deposited is never taxed. Some states allow you to transfer the account to a sibling or other family member without penalty, so check your state's rules before withdrawing.

Do I need to report the Trump account on my taxes?

You do not report the account itself on your taxes. However, if the account earns interest or investment income, the child may need to file a tax return depending on how much income was earned. The institution will send you a form showing the earnings each year. Consult a tax professional about your specific situation.