Unlike Roth IRAs, Trump Accounts do not require earned income for eligibility. That means small business owners can take advantage of this new tax-free savings vehicle for their kids — even if they’re not old enough to work.
Key Strategy for SMBs:
Employer-funded Trump Accounts
As a business owner, you can contribute up to $2,500/year per child to a Trump Account for an employee’s (or your own) child.
Contributions are not taxable to the employee (you or your spouse).
There’s no age minimum — even infants qualify.
These contributions don’t require the child to earn wages.
Pro Tip: This allows you to put away tax-free money for your kids outside of your own retirement plan, without triggering Kiddie Tax or income limits.
Bonus: $1,000 Government Match for Newborns (2025–2028)
If your child is born in this window, you can opt in for a free $1,000 seed contribution from the federal government.
No strings attached — and this is exempt from garnishment, tax offset, or clawback.
Optional Add-on: Payroll for Spouse or Teen Child?
If your spouse or older child is legitimately working in your business (e.g., admin, social, delivery), putting them on payroll gives you even more strategic room:
Consider combining:
→ Wages paid to family
→ Trump Account contributions as a benefit
→ Potential solo 401(k) or Roth IRA contributions if they qualify
Caution: Avoid reclassifying adult-owner wages as a workaround — the IRS will crack down on this. But legit employees (including spouses in operational roles) may qualify for Trump Account employer contributions.