What you need to do to open a Trump Account

A Trump Account is a tax-advantaged savings account for children under 18, run by your state. You open one by contacting your state's 529 plan administrator directly — there is no federal process or single national portal. The account belongs to the child, but you (or another adult) control it as the account owner until the child turns 18 or 21, depending on your state's rules.

The process takes about 15 to 30 minutes online or by phone. You will need the child's Social Security number, your own identification, and basic information about who will own and fund the account. Some states let you open an account entirely online; others require a phone call or mailed form. The account can be opened before the child is born if you have a Social Security number assigned.

Once the account is open, you can deposit money when ready. There are no required minimum deposits, and you can contribute as little as $25 per month or as much as you want in a lump sum. The money grows tax-free as long as it is used for the child's education.

Key Takeaways

  • You open a Trump Account by contacting your state's 529 plan administrator, not a federal office — each state runs its own program with different websites and phone numbers.
  • You will need the child's Social Security number, your identification, and information about who will own the account before you start.
  • The account owner (usually a parent or grandparent) controls the money until the child reaches 18 or 21, depending on your state.
  • Deposits can start when ready after the account opens, with no minimum amount required, and the money grows tax-free when used for education expenses.
  • Each state's 529 plan has different investment options, fees, and tax benefits, so comparing your state's plan to others may save you money.

Finding your state's 529 plan administrator and website

Your state's 529 plan has its own website and phone number. The easiest way to find it is to search "[your state name] 529 plan" or "[your state name] Trump Account." Most state websites have a direct link to open an account online, or they list a phone number to call for help.

If you cannot find your state's site, the College Savings Plans Network (CSPN) maintains a directory of all 50 state programs at collegesavings.org. Click your state, and you will see the official plan name, the website URL, and a phone number. Some states run more than one 529 plan — for example, California has two — so make sure you are on the right one before you start.

A few states also let you open an account through a financial advisor or brokerage firm instead of directly with the state. This route usually costs more in fees, so opening directly with your state is normally cheaper.

Information and documents you will need

Before you open an account, gather these items so the process moves quickly:

  • The child's full legal name and Social Security number
  • The child's date of birth
  • Your full legal name, address, and Social Security number (or tax ID if you are opening the account as a business or trust)
  • Your driver's license or passport number
  • Your phone number and email address
  • The child's relationship to you (parent, grandparent, aunt, etc.)

If you are opening the account online, you will enter this information into a form. If you are opening by phone or mail, the plan administrator will ask for it verbally or request that you mail a signed form. Some states verify your identity by asking security questions or sending a code to your phone or email.

You do not need to bring any documents to prove the child's identity or your relationship to them at the time of opening, but keep your records in case the plan administrator asks for them later.

Choosing how much to invest and where your money goes

After the account opens, you decide how much money to put in and which investment option to choose. Most state 529 plans offer a range of investment portfolios — typically a mix of stocks and bonds that you can choose based on how long until the child will use the money. If the child is a newborn, you might choose a more aggressive portfolio with more stocks. If the child is 16, you might choose a conservative portfolio with more bonds.

Some plans offer an "age-based" option that automatically shifts from stocks to bonds as the child gets older. This requires no action from you — the plan handles the rebalancing. Other plans let you pick a specific mix yourself and keep it the same year after year.

There is no minimum deposit to open the account, but most plans have a minimum for your first contribution — often $25 to $50. After that, you can add money whenever you want, in any amount. You can set up automatic monthly transfers from your bank account, or make one-time deposits.

Tax benefits and how they work

Money in a Trump Account grows without federal income tax as long as it is used for education. When you withdraw the money to pay for tuition, room and board, books, or other education expenses, you do not owe federal tax on the growth. You also do not owe tax on the growth when the money is used for K-12 tuition or student loan repayment, up to certain limits.

Many states also offer a state income tax deduction for contributions you make to the state's own 529 plan. The deduction amount varies by state — some states deduct up to $235 per year per beneficiary, while others have no limit. A few states offer no deduction at all. Check your state's plan website to see whether you can deduct your contributions on your state tax return.

If you withdraw money for something other than education, you owe federal income tax on the growth plus a 10 percent penalty. The original money you put in comes out tax-free, but the earnings are taxed. This is why it is important to think carefully about whether you will actually use the money for education before you open the account.

What happens if the child does not go to college

If the child does not use the money for education, you have options. You can transfer the account to another family member — a sibling, cousin, niece, or nephew — without tax or penalty. The money stays in the account and continues to grow tax-free for the new beneficiary's education.

You can also withdraw the money, but you will owe federal income tax on the growth plus a 10 percent penalty. Some states also charge a state penalty. For example, if you put in $10,000 and it grew to $12,000, you would owe federal tax on the $2,000 growth plus a 10 percent penalty ($200), even though you are taking out your own money.

A newer option in many states is a "Roth conversion" or "Roth rollover," which lets you move unused money into a Roth IRA for the child without the 10 percent penalty. You still owe tax on the growth, but the penalty is waived. This option is relatively new and not available in all states, so check your state's plan to see whether it is offered.

Comparing state plans and understanding fees

Each state's 529 plan charges different fees and offers different investment options. Some plans are cheaper than others, and some have better investment performance. You are not required to use your own state's plan — you can open an account in any state's plan, even if you live somewhere else.

Common fees include an annual account maintenance fee (usually $0 to $50), investment management fees (usually 0.2 to 1 percent of your balance per year), and underlying fund fees. A few plans have no fees at all. Before you open an account, look at your state's plan and one or two others to compare the total cost. A plan with lower fees will leave more of your money to grow.

Some states offer tax deductions only if you use that state's plan, so if your state has a deduction, that may be the cheapest option even if another state's plan has lower investment fees. Use a fee calculator on your state's 529 website to see the total cost over time.

Frequently Asked Questions

Can I open a Trump Account if I am not the child's parent?

Yes. Grandparents, aunts, uncles, and other relatives can open and own a Trump Account for a child. The child's Social Security number is required, but you do not need to be a legal guardian. The account owner controls the money, so you decide when and how it is spent on education.

What happens to the money if the child passes away?

The money in the account becomes part of the child's estate and is handled according to your will or state law. If you named yourself as the account owner, you can transfer the account to another family member as the new beneficiary without tax or penalty. Check your state's plan rules for the exact process.

Can I use Trump Account money for private school or trade school?

Yes. Trump Account money can be used for tuition and fees at any accredited school, including private K-12 schools, colleges, universities, and trade or vocational schools. Room and board, books, and required equipment also count as education expenses. Some restrictions explore to computers and internet, so check your state's plan for details.

Does having a Trump Account hurt my child's chances of getting financial aid?

Yes, it can. Money in a Trump Account owned by a parent counts as a parental asset on the FAFSA (Free process for Federal Student Aid) and reduces the amount of need-based aid the child may receive. Money owned by a grandparent or other relative has less impact. If you are concerned about financial aid, talk to a financial advisor before opening the account.

Can I change the investment option after I open the account?

Yes. Most state plans let you change your investment option twice per year, or once per year if you change the beneficiary. Some plans allow unlimited changes. Check your state's plan rules to see how often you can make changes without penalty.