By Lisa Whitley, Bookkeeper — First Coast Accounting, St. Augustine, FL
Recent tax law changes have introduced a brand-new financial planning opportunity for families: “Trump Accounts.” These accounts are designed to help build early financial security for children born between January 1, 2025 and December 31, 2028, combining government funding, private contributions, and potential employer participation.
If you’re planning for a growing family or are an employer looking to expand benefits, here’s what you need to know.
What Are “Trump Accounts”?
“Trump Accounts” are newly created tax-favored savings accounts established for qualifying U.S. citizen children.
Each eligible child will receive an initial $1,000 contribution funded by taxpayer dollars. These accounts are intended to support long-term financial growth and provide families with a structured way to begin saving from birth.
Who Qualifies?
To be eligible:
- The child must be a U.S. citizen
- The child must be born between January 1, 2025 and December 31, 2028
Once established, these accounts can receive contributions from family members and, in some cases, employers.
Contribution Limits You Should Know
The law allows for multiple funding sources:
✔ Individual Contributions
Individuals may contribute up to $5,000 per year, indexed for inflation.
✔ Employer Contributions
Employers may contribute up to $2,500 per year, indexed for inflation, to either:
- An employee’s Trump Account
- Or an employee’s dependent’s Trump Account
This creates a unique opportunity for employers to support families through enhanced benefit programs while offering long-term financial value.
Why This Matters for Families and Employers
These accounts introduce new planning strategies:
For families, they provide:
- A head start on long-term savings
- Government-seeded financial support
- A structured, tax-favored savings vehicle
For employers, they create:
- A powerful new benefits option
- A family-friendly incentive for recruitment and retention
- Potential tax-efficient compensation planning opportunities
Planning Considerations
Because this program is new, proper planning will be essential. Families and employers should consider:
- How these accounts integrate with existing education or investment planning
- Long-term contribution strategies
- Recordkeeping and compliance
- Coordination with broader tax and financial goals
Professional guidance is strongly recommended to ensure accounts are structured and used correctly.
How First Coast Accounting in St. Augustine Can Help
At First Coast Accounting, we work with individuals, families, and business owners across St. Augustine and Northeast Florida to help navigate new tax laws with clarity and confidence.
We can assist with:
- Understanding eligibility requirements
- Family tax and savings planning
- Employer contribution strategies
