Where to open a Trump Account and what you need to start

Trump Accounts are opened through your state's 529 plan administrator, not through a federal office or a single national website. Each state runs its own 529 program, and most allow you to open an account online in 15 to 30 minutes. You will need a Social Security number for the child, your own identification, and a funding method — usually a bank account or debit card.

Start by visiting your state's 529 plan website directly. If you do not know which plan your state offers, the College Savings Plans Network maintains a state-by-state directory. Some states offer multiple plans; most residents choose the one run by their own state, though you can open an account in any state's plan regardless of where you live.

The account holder — usually a parent or guardian — must be at least 18 years old and a U.S. citizen or resident alien. The beneficiary (the child) does not need to be present, and you can open the account before the child is born if you have a Social Security number or tax identification number to use.

Key Takeaways

  • Trump Accounts open through your state's 529 plan website, and the process takes 15 to 30 minutes online with a Social Security number for the child and your own ID.
  • You can fund the account when ready with a bank transfer or debit card, or wait to deposit money later — opening the account does not require an initial deposit.
  • Each state's 529 plan has its own rules about investment options and fees, so comparing your state's plan to one or two others takes 10 minutes and can save money over time.
  • Contributions are not tax-deductible at the federal level, but many states offer a state income tax deduction for contributions to their own 529 plan.
  • Money in the account grows tax-free as long as it is used for may have access to education expenses, which include tuition, room and board, books, and computers.

Step-by-step process to complete your account setup

Once you are on your state's 529 website, look for a button labeled "Open an Account" or "get your free guide." You will be asked to provide your name, address, date of birth, and Social Security number, plus the child's name and Social Security number. Have your driver's license or passport ready — most sites ask you to verify your identity before the account is created.

Next, you will choose an investment option. Most 529 plans offer age-based portfolios that automatically shift from stocks to bonds as the child gets closer to college age. If you prefer to pick individual investments, that option is usually available too. If you are unsure, the age-based option is the standard choice and requires no ongoing decisions.

After that, you will enter your bank account or debit card information if you want to fund the account right away. Many people open the account first and fund it later — there is no important date, and no minimum deposit is required to open. Once you submit, the account is usually active within one to three business days.

Funding your Trump Account after it opens

You can deposit money into the account at any time after it opens. Most plans accept bank transfers, debit card payments, and checks. Some also accept wire transfers or automatic monthly deposits. The minimum initial deposit varies by plan — most range from $25 to $250, though some have no minimum at all.

Each contribution counts toward the annual gift tax exclusion, which is $18,000 per person per beneficiary in 2024 (this amount changes yearly). If you and a spouse both contribute, you can each give $18,000 without filing a gift tax return. Grandparents and other relatives can also contribute directly to the account if you give them the account number.

There is no annual important date to contribute — you can deposit $100 one year and $5,000 the next. The money grows tax-free inside the account regardless of how much or how often you add to it.

Tax benefits and what they mean for your family

Contributions to a Trump Account are not deductible from your federal income taxes. However, 35 states and the District of Columbia offer a state income tax deduction or credit for contributions to their own 529 plan. The amount varies widely — some states deduct up to $235 per year per beneficiary, while others allow much larger deductions. If your state offers a deduction, using your state's plan usually makes financial sense.

The real tax benefit comes when the money is withdrawn. Earnings inside the account grow tax-free, and withdrawals for may have access to education expenses — tuition, fees, room and board, books, computers, and student loan repayment — are not taxed at all. This tax-free growth is the main reason families open these accounts.

If money is withdrawn for a non-may have access to expense, the earnings portion is taxed as income plus a 10 percent penalty. The contribution itself always comes out tax-free. For example, if you contributed $10,000 and it grew to $15,000, and you withdraw $15,000 for a non-may have access to expense, you pay income tax and the 10 percent penalty only on the $5,000 in earnings.

What happens if you need to change the beneficiary or close the account

You can change the beneficiary to another family member — a sibling, cousin, niece, or nephew — without penalty or tax consequences. This is useful if one child does not need the money or if you want to move funds between siblings. The change takes a few days to process and usually requires a form from your plan administrator.

If you close the account and withdraw the money for non-may have access to expenses, you will owe income tax on the earnings plus the 10 percent penalty. However, if the beneficiary receives a scholarship, you can withdraw an amount equal to the scholarship without penalty (though you still owe tax on the earnings). If the beneficiary attends a military academy, you can also withdraw without penalty.

Some states allow you to roll a Trump Account into a Roth IRA for the beneficiary under certain conditions. This is a newer option that lets unused education savings become retirement savings. Check with your plan administrator to see if your state offers this.

Comparing your state's plan to other options

Your state's 529 plan is not always the cheapest or best-performing option. Spend 15 minutes comparing your state's plan to one or two others — particularly plans run by states known for low fees, such as New York, Utah, or Nevada. Look at three things: the annual expense ratio (the percentage you pay each year to hold the investments), the investment options available, and whether your state offers a tax deduction for contributions.

If your state offers a strong tax deduction, that usually outweighs slightly higher fees in the plan itself. If your state offers no tax deduction, you may save money by opening an account in a lower-cost state plan. The College Savings Plans Network and Morningstar both publish annual reviews of 529 plans by cost and performance.

You can open accounts in multiple states' plans if you want — there is no rule against it. Some families open one account in their home state to capture the tax deduction, and another in a low-cost plan for additional savings.

Frequently Asked Questions

Can I open a Trump Account if I do not have a Social Security number for the child yet?

Most states allow you to open an account before the child is born if you have a tax identification number. You can explore for an Individual Taxpayer Identification Number (ITIN) from the IRS, or you can open the account after the child is born and you receive the Social Security number. Some plans let you update the beneficiary information later.

What if I want to use the money for private school instead of college?

may have access to education expenses now include private school tuition for grades K through 12, up to $35,000 per year per beneficiary. This changed in 2024. Room and board are not covered for K-12 private school, only tuition and fees. Check your plan's website to confirm they have updated their rules.

Can I move money from one state's 529 plan to another?

Yes, you can roll over funds from one 529 plan to another without penalty. The process is called a "direct rollover" and usually takes one to two weeks. Your new plan administrator can guide you through it. Be aware that some states may recapture the tax deduction you claimed in previous years if you move the money out.

What if the child does not go to college?

You can change the beneficiary to a sibling or other family member without penalty. You can also withdraw the money for non-may have access to expenses, though you will owe income tax and a 10 percent penalty on the earnings. Some states now allow you to roll unused funds into a Roth IRA for the beneficiary instead.

Do I have to use the money for the child's own education, or can I use it for graduate school?

You can use the money for the child's graduate school, professional school, or trade school — any post-secondary education counts as may have access to. You can also use it to repay student loans, up to $35,000 total per beneficiary over the child's lifetime.