Trump Accounts: Is More Always Better?

Trump Accounts are new tax-advantaged investment accounts for children under 18. Eligible children born from 2025–2028 can receive a $1,000 federal contribution, and families and employers can generally contribute up to $5,000 per year. The money is invested for long-term growth and, beginning at age 18, the account generally follows traditional IRA rules.

But the bigger planning question is: Where should the next dollar go?

For some families, a Trump Account may make sense. For others, maximizing a 401(k), Roth IRA, HSA, or 529 may provide greater value depending on their goals, tax situation, and time horizon.

There are also important considerations around control, taxes, Roth conversions, and the child ultimately gaining access to the account at 18.

This is where we, as CFP^® professionals, can add value—not simply by recommending an account, but by helping families prioritize their savings across multiple opportunities and build a strategy around the entire family.

The question isn’t, “Should I fund a Trump Account?”

It’s, “Where can my next dollar have the greatest impact for me and my family?”

We think there are four particularly strong CFP^® planning opportunities:

1. Prioritization: 401(k), Roth IRA, HSA, 529, or Trump Account? Help determine the right order.
2. Tax planning: Evaluate the future tax impact of contributions, withdrawals, and potential Roth conversions.
3. Control & behavior: Beginning at age 18, the child generally has access to the account under traditional IRA rules. That’s an important family-planning consideration for wealthy parents and grandparents.
4. Generational planning: For high-net-worth families, the Trump Account may be one piece of a larger strategy involving 529s, Roth IRAs, trusts, gifting, and estate planning.

If you have any questions, please reach out to us at Princeton Global.