OBBB Strategy: Fund a Trump Account for Your Child — Even Without Earned Income

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.