Quick Answer
The One Big Beautiful Bill (2025) created "Trump Accounts" — child savings accounts with a $1,000 federal seed contribution. Most ITIN-only families are not eligible for the federal seed because it requires the child to have an SSN. Families where the child has an SSN may qualify for the federal contribution regardless of the parents' ITIN status.
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 Don't Most ITIN Families Qualify for Trump Accounts?
Most ITIN-only families don't qualify because the law requires 2 conditions: the child must be a U.S. citizen by birth, and at least one parent must have a work-authorized SSN. An estimated 14 million undocumented immigrants live in the U.S. (Pew Research, 2023) — many with U.S.-born children who are citizens but whose parents hold only an ITIN. This affects an estimated 4.5 million citizen children.
- The child must be a U.S. citizen by birth.
- 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.
What Are the Best Savings Alternatives for ITIN Families?
Growing money for your child's future is still achievable through 4 accounts open to ITIN families: a custodial Roth IRA if the child has earned income, a custodial UTMA brokerage account, a 529 college savings plan, and a regular brokerage account in the parent's name. Fidelity and Schwab both let ITIN holders open custodial and brokerage accounts.
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.
What 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
Can I open a Trump Account for my child if I only have an ITIN?
No. Trump Accounts require that at least one parent has a valid Social Security Number and current work authorization. If neither parent has an SSN, the child is not eligible — even if the child is a U.S. citizen.
What is the $1,000 seed deposit for Trump Accounts?
The federal government deposits $1,000 into eligible Trump Accounts for children born after December 31, 2024. This is a one-time deposit, not an annual contribution. The child must meet all eligibility requirements to receive it.
Can my U.S.-born child get a Trump Account if I have an ITIN?
Not if neither parent has an SSN and work authorization. The law requires at least one parent to have a valid SSN with current work authorization, regardless of the child's citizenship status.
What are the best alternatives to Trump Accounts for ITIN families?
The closest alternatives are a custodial Roth IRA (if the child has earned income and an SSN or ITIN), a custodial UTMA brokerage account, or a 529 college savings plan. Each has different rules and tax treatment.