Trump Accounts: A New Opportunity to Build Generational Wealth

John J. Vento, Jr., CPA, CFP®

July 05, 2026

We hope you had a wonderful Independence Day as our nation celebrated its 250th birthday!Trump Accounts are now officially available, giving families a new opportunity to begin investing for the next generation from birth.

Much of the discussion surrounding Trump Accounts has centered on their tax advantages. While those benefits are certainly significant, they become even more powerful when combined with decades of compounded investment growth.By allowing families to begin investing from birth, Trump Accounts have the potential to become one of the most effective long-term wealth-building tools available.

How Trump Accounts Work

Trump Accounts are available for children under age 18. Children born between January 1, 2025, and December 31, 2028, are eligible to receive a one-time $1,000 government contribution to help establish the account.

Parents, grandparents, relatives, and, in some cases, employers may make additional annual contributions, subject to IRS limits. The funds must be invested in diversified, low-cost U.S. stock index funds and grow tax deferred. Withdrawals generally are not permitted before age 18, after which the account transitions into a retirement account under the applicable rules.

A Potential Roth IRA Planning Opportunity

Beyond their long-term growth potential, Trump Accounts may also create a valuable Roth IRA planning opportunity.

When the account holder reaches adulthood, assets held in a Trump Account may be eligible to be converted to a Roth IRA, subject to the tax laws in effect at that time. Although a Roth conversion generally requires paying income tax on the converted amount, many young adults are in one of the lowest income tax brackets they will experience during their working lives. Converting the account during those early years may allow the taxes to be paid at a relatively low rate while positioning the assets for decades of potential tax-free growth inside a Roth IRA.

Depending on the individual's taxable income and the tax laws in effect at the time, some or all of the converted amount may even fall within the standard deduction, potentially resulting in little or no federal income tax.

However, careful planning is essential. Families should consider the impact of the "kiddie tax" rules, which may apply if a Roth conversion is completed while the account owner is still subject to those provisions. In some situations, the converted amount could be taxed at the parents' tax rate rather than the child's. In addition, taxes due on a Roth conversion should generally be paid with funds outside of the retirement account whenever possible, since using account assets may trigger additional taxes and penalties while reducing the amount available for future tax-advantaged growth.

The Greatest Advantage: Time

Regardless of whether a Roth conversion ultimately becomes part of your family's strategy, the greatest advantage of a Trump Account is one that every investor can benefit from: time.

InThe Generational Wealth Code, we discuss one of the most important principles in investing, the time value of money. Every year that money remains invested creates another opportunity for growth through compounding.

Consider the following example from our book. Assume a child receives annual contributions of $5,000 from birth through age 17, for a total investment of $90,000. If those investments earn a hypothetical 10% annual return, the account could potentially grow to approximately $227,996 by age 18.

If no additional contributions were ever made and the account continued earning the same hypothetical return, the value at age 65 would exceed $22 million.

Age	Estimated Account Value
18	$227,996
65	$22,119,541

These figures are hypothetical and are intended to illustrate the power of long-term compounding. Actual investment returns will vary and cannot be guaranteed.

The lesson is simple: starting early can be one of the most powerful financial decisions a family makes. Trump Accounts provide parents and grandparents with an opportunity to help children begin building retirement assets decades before most people start saving for retirement.

Is a Trump Account Right for Your Family?

Like any financial planning strategy, Trump Accounts should be evaluated within the context of your overall financial plan. Contribution limits, investment objectives, tax considerations, and future legislative changes should all be considered before implementing a strategy.

To learn more about eligibility requirements, contribution limits, and how to open a Trump Account, visit the official website atwww.TrumpAccounts.gov.

If you have questions about how a Trump Account may fit into your family's overall tax, retirement, or estate planning strategy, our team would be happy to discuss whether this new savings opportunity aligns with your long-term financial goals.

All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. A diversified portfolio does not assure a profit or protect against loss in a declining market. Converting from a traditional IRA to a Roth IRA is a taxable event. A Roth IRA offers tax free withdrawals on taxable contributions. To qualify for the tax-free and penalty-free withdrawal or earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59 ½ or due to death, disability, or a first-time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes. The hypothetical investment results are for illustrative purposes only and should not be deemed a representation of past or future results. Actual investment results may be more or less than those shown. This does not represent any specific product [and/or service]. Tax Deferral - 10% IRS penalty may apply to withdrawals prior to age 59 ½.