Trump Accounts (MAGA Accounts): What ITIN Holders Need to Know

Last updated: June 1, 2026
By Miguel Garcia

What Are Trump Accounts?

A Trump Account — officially the Money Account for Growth and Advancement (MAGA Account) — is a new federally created savings account for American children, established by the One Big Beautiful Bill Act (signed July 4, 2025).

Key details:

• Federal seed: $1,000 deposited by the government for eligible children born after December 31, 2024. One-time only.
• Annual limit: Up to $5,000/year total from all contributors (parents, grandparents, employers).
• Investment requirement: Funds must be invested in S&P 500 index funds or other U.S. equity index funds. No individual stocks.
• Withdrawal age: Cannot withdraw before January 1 of the year the child turns 18.
• Tax treatment: Contributions are after-tax; growth is tax-advantaged. Final rules still being issued by IRS (as of mid-2026).

Why Most ITIN Families Don't Qualify

The law sets two conditions that must both be true for a child to receive a Trump Account:

1. The child must be a U.S. citizen by birth.
2. At least one parent must have a valid Social Security Number and current work authorization.

The second condition is the barrier for most ITIN-only families. An ITIN is issued for tax purposes only — it is not an SSN and does not constitute work authorization. If neither parent has an SSN with work authorization, the child is ineligible, regardless of citizenship.

This affects an estimated 4.5+ million U.S.-citizen children whose parents are undocumented or lack work authorization.

Alternatives for ITIN Families

The goal — growing money for your child's future — is still achievable. These accounts are open to ITIN families:

Custodial Roth IRA (if child has earned income)

If your child has earned income (a part-time job, babysitting, freelance work) and an SSN or ITIN, you can open a custodial Roth IRA in their name. Contributions grow tax-free, and the child can withdraw contributions at any time without penalty. This is arguably the most powerful long-term savings tool for a working child. See the full guide: Custodial Roth IRA for Children of ITIN Holders.

Custodial UTMA Brokerage Account

A Uniform Transfers to Minors Act (UTMA) account lets a parent open a taxable brokerage account in the child's name. No earned income requirement. The child takes control at age 18–21 (varies by state). Fidelity and Schwab both accept ITIN holders to open custodial accounts. Unlike Trump Accounts, there's no annual limit and no investment restriction. The trade-off: investment gains are taxable each year (the "kiddie tax" applies to children under 19).

529 College Savings Plan

529 accounts are open to any U.S. resident regardless of immigration status. Contributions grow tax-free when used for education expenses. Many states allow ITIN holders to open 529 accounts. The 2025 tax law also added a provision allowing unused 529 funds to be rolled into a Roth IRA (up to $35,000 lifetime, with restrictions). See: 529 College Savings Plans for ITIN Families.

Regular Brokerage Account (in parent's name)

If your child is young and can't open their own account yet, investing in a taxable brokerage account in your own name — earmarked for your child — still captures the same market returns as a Trump Account. When you're ready, you can gift or transfer assets. ITIN holders can open brokerage accounts at Fidelity and Schwab. See: How to Invest With an ITIN.

If One Parent Has an SSN

If your household has one parent with a valid SSN and work authorization, your U.S.-born child may qualify — even if the other parent only has an ITIN. The law requires at least one qualifying parent. Contact the IRS at 1-800-829-1040 once enrollment opens to confirm your specific situation.

Frequently Asked Questions