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What’s a Trump Account? A New Way to Build Financial Discipline—From Day One

The Trump Account isn’t a flashy new savings tool. In fact, that’s its strength.

It’s structured, restrictive, and deliberately focused—and in a world of financial products that promise flexibility and quick access, that kind of design is rare. But for families who value discipline, long-term thinking, and intentional planning, it might be exactly what you’ve been looking for.

Couple drawing in notebook for child

What Is a Trump Account?

Starting in 2026, parents (or anyone) can open a Trump Account for a child under age 18. You can contribute up to $5,000 per year, indexed for inflation, and the funds must be invested in low-cost index funds or ETFs (expense ratios under 0.1%). Speculative bets or high-cost options are off the table by design.

Withdrawals? Not allowed until the child turns 18—no exceptions for college, emergencies, or housing. And at 18, the account automatically converts into a Roth IRA, which the child owns outright. From there, standard Roth IRA rules apply: contributions can be withdrawn any time, but earnings must meet age and holding requirements.

For children born between 2025 and 2028, the federal government may also contribute a $1,000 seed deposit to kick-start the account (pending Treasury implementation).

Why a Disciplined Structure Matters

One of the most consistent drivers of long-term financial success isn’t timing or luck—it’s self-discipline. The ability to follow a plan, avoid distractions, and stay committed through uncertainty matters more than almost anything else.

The Trump Account isn’t designed for flexibility—it’s designed to remove decision fatigue and temptation. And that’s a good thing. It creates a rare opportunity: to give a child the gift of time and compounding, wrapped in a structure that rewards patience.

How It Compares

Account TypeTax-Free GrowthEarly Withdrawals Allowed?FlexibilityOwner at Age 18
Trump AccountYesNo (until age 18)Moderate (functions as Roth IRA after 18)Child
529 PlanYes (for education expenses only)Yes, but 10% penalty if not used for qualified expensesLowAccount owner
Custodial (UTMA/
UGMA)		No (earnings taxed annually)YesHighChild

The Trump Account doesn’t replace a 529 or custodial account. But it’s a useful third pillar—especially when the question is, “What else can we do for our kids, long-term?”

When It Works—and When It Doesn’t

Good fit when:

  • You want to give your child a head start on retirement.
  • You already fund education through a 529.
  • You’re a high earner seeking a tax-efficient way to transfer assets to a minor.
  • You value simplicity and can commit to the “no early access” rule.

Not ideal when:

  • The money might be needed before age 18.
  • Your child already has significant assets in a custodial account.
  • You want flexibility or control over specific investments.

Final Thought: Structure Builds Strength

In working with families, I’ve found that the tools we appreciate most aren’t the ones that offer every possible option—they’re the ones that give us clarity and structure to follow through on what matters.

The Trump Account isn’t for everyone. But for families who want to support their kids with a long-term mindset—and who believe in the power of consistency—it’s a thoughtful way to put that philosophy into action.

Connect with us to explore how a Trump Account—or other tools—can support your family’s long-term financial goals.

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