Trump accounts offer families a strategic way to build tax-advantaged wealth for children through long-term planning and Roth conversion opportunities.
What Are Trump Accounts?
Trump accounts are a new tax-advantaged savings and investment vehicle for minors under age 18. These accounts were created under the “Money Account for Growth and Advancement” legislation signed on July 4, 2025, and additional details can be found on the IRS website.
They are designed to help families save for long-term goals such as education, home purchases, and retirement as part of a broader financial planning strategy.
The most powerful feature of Trump accounts is the ability to convert them into a Roth IRA later in life, allowing for tax-free growth.
Starting early can make a meaningful difference in long-term financial outcomes.
Who Can Open Trump Accounts
Any U.S. child under the age of 18 with a Social Security number can open a Trump account.
Parents or authorized individuals such as guardians or grandparents can open and manage the account on behalf of the child.
Key eligibility details:
Children born between 2025 and 2028 may receive a $1,000 government seed contribution
Annual contribution limit: $5,000
Contributions allowed until age 18
Contributions are made with after-tax dollars
How Do Trump Accounts Work?
Trump accounts function similarly to custodial retirement accounts.
Structure:
The account is managed by an adult until the child turns 18
Funds are invested in low-cost U.S. equity index funds
Growth is tax-deferred
At age 18:
The account converts into a Traditional IRA
The owner can withdraw funds, continue investing, or convert to a Roth IRA
Why a Roth Conversion Matters
The Roth conversion strategy is the most important feature of Trump accounts.
When converted to a Roth IRA:
Future growth becomes tax-free
Contributions can be accessed without penalties
Long-term wealth accumulation becomes significantly more efficient
However, timing is critical.
Key considerations:
Converting too early may trigger the Kiddie Tax
Taxes are owed on non-basis amounts
Planning with a financial advisor is essential
Trump Accounts vs Other Savings Options
Families often compare Trump accounts to other common strategies.
Trump Accounts
Tax-deferred growth
Roth conversion opportunity
$5,000 annual contribution limit
529 Plans
Higher contribution limits
Tax-free education withdrawals
Limited to education use
UTMA Accounts
No contribution limits
Flexible use of funds
No tax advantages
Trump accounts stand out because they offer potential tax-free lifetime growth after a Roth conversion.
Potential Long-Term Growth
Trump accounts can produce significant long-term results when used strategically.
Example scenario:
$1,000 initial contribution
$5,000 annual contributions for 18 years
7% annual growth
By age 24, the account can grow to $278,000. After a roth conversion at 24, the Roth IRA reaches approximately $3.07 million by age 59 1/2, 100% tax- and penalty-free.
This makes Trump accounts a powerful tool for building generational wealth.
Gifting and Estate Planning Considerations
Trump accounts introduce new planning opportunities for high-net-worth families.
Important factors:
Contributions are treated as gifts of future interest
They do not qualify for the annual gift tax exclusion
Donors may need to file gift tax returns
Despite limitations, Trump accounts can still play a role in multi-generational wealth transfer strategies.
What Are the Risks or Unknowns?
While Trump accounts offer strong potential benefits, some areas remain unclear.
Key unknowns:
Withdrawal rules before and after age 18
Early withdrawal penalties
Employer contribution rules
Investment flexibility
Families should monitor updates and work with advisors as guidance evolves.
Is a Trump Account Right for Your Family?
Trump accounts may be a strong fit if you:
Want to build long-term, tax-efficient wealth for children
Are comfortable with contribution limits
Plan to leverage a Roth conversion strategy
They are especially valuable when combined with broader financial and estate planning strategies.
Conclusion
Trump accounts provide a new and flexible way for families to invest in their children’s financial future.
With proper planning, especially around Roth conversion timing, these accounts can create meaningful long-term, tax-free wealth.
As always, it is important to consult with a financial advisor to determine how Trump accounts fit into your overall financial strategy.
Frequently Asked Questions (FAQ)
What is a Trump account?
A Trump account is a tax-advantaged investment account for minors that can later convert into a Roth IRA.
How much can you contribute to a Trump account?
You can contribute up to $5,000 per year per child.
Are Trump accounts tax-deductible?
No. Contributions are made with after-tax dollars.
Can Trump accounts be converted to a Roth IRA?
Yes. After age 18, the account can be converted, allowing for tax-free growth.
Are Trump accounts better than 529 plans?
They serve different purposes. Trump accounts offer broader use and Roth potential, while 529 plans are education-focused.
FAS Wealth Partners, Inc. (“FAS”) is a federally registered investment advisor with the Securities and
Exchange Commission. This material is limited to the dissemination of general information pertaining to
its diversified services. Accordingly, the publication of this material should not be construed by any
consumer and/or prospective client as FAS solicitation to effect, or attempt to effect, transactions in
securities or the rendering of personalized investment or tax advice for compensation, over the Internet.
Any subsequent, direct communication by FAS with a prospective client shall be conducted by a
representative that is either registered or qualifies for an exemption or exclusion from registration in the
state where the prospective client resides. For information pertaining to the registration status of FAS,
please contact the SEC or the state securities law administrators for those states in which FAS maintains
registration or notice filing. FAS current written disclosure statement (Form ADV Part 2A) discussing FAS
business operations, services, and fees is available from FAS upon written request.
The information provided by FAS, or any portion thereof, may not be copied or distributed without FAS
prior written approval. All statements are current as of the date written and does not constitute an offer or
solicitation to any person in any jurisdiction in which such offer or solicitation is not authorized or to any
person to whom it would be unlawful to make such offer or solicitation. The standard fee schedules for
FAS strategies are shown in the firm’s Form ADV Part 2.
This information was produced by, and the opinions expressed are those of FAS as of the date of writing
and are subject to change. Any research is based on FAS proprietary research and analysis of global markets
and investing. The information and/or analysis presented have been compiled or arrived at from sources
believed to be reliable, however FAS does not make any representation as their accuracy or completeness
and does not accept liability for any loss arising from the use hereof. Some internally generated information
may be considered theoretical in nature and is subject to inherent limitations associated therein. There are
no material changes to the conditions, objectives, or investment strategies of the model portfolios for the
period portrayed. Any sectors or allocations referenced may or may not be represented in portfolios of
clients of FAS, and do not represent all the securities purchased, sold, or recommended for client accounts.
Certain portions of this material (i.e., newsletters, articles, commentaries, etc.) may contain a discussion of,
and/or provide access to, FAS (and those of other investment and non-investment professionals) positions
and/or recommendations as of a specific prior date. Due to various factors, including changing market
conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s).
Moreover, no client or prospective client should assume that any such discussion serves as the receipt of,
or a substitute for, personalized advice from FAS, or from any other investment, tax, or financial
professional. FAS is neither an attorney nor accountant, and no portion of the material content should be
interpreted as legal, accounting or tax advice. FAS recommends clients and prospective clients consult their
tax professionals before enacting strategy or recommendation perceived to have been made in this material.
Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not
intended or written to be used, and cannot be used, in connection with the promotion, marketing or
recommendation by anyone unaffiliated with FAS of any of the matters addressed herein or for the purpose
of avoiding U.S. tax-related penalties.
Past performance may not be indicative of future results. Therefore, no current or prospective client should
assume that future performance of any specific investment, investment strategy (including the investments
and/or investment strategies recommended by FAS) or product referred to directly or indirectly by FAS in
its material, or indirectly via a link to an unaffiliated third-party material, will be profitable or equal the
corresponding indicated performance level(s). The standard deviations, information ratios and allocation
targets may be higher or lower at any time. There is no guarantee that these measurements will be achieved.
The information provided should not be considered a recommendation to purchase or sell a particular
security. Any specific securities identified do not represent all the securities purchased, sold or
recommended for advisory clients, and may be only a small percentage of the entire portfolio and may not
remain in the portfolio at the time you receive this report. Different types of investments involve varying
degrees of risk, and there can be no assurance that any specific investment will either be suitable or
profitable for a client or prospective client’s investment portfolio. Historical performance results for
investment indices and/or categories generally do not reflect the deduction of transaction and/or custodial
charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which
would have the effect of decreasing historical performance results.
Due to differences in actual account allocations, account opening date, timing of cash flow in or out of the
account, rebalancing frequency, and various other transaction-based or market factors, a client’s actual
return may be materially different than those portrayed in the model results. The reader should not assume
that any investments in sectors and markets identified or described were or will be profitable. Investing
entails risks, including possible loss of principal. The use of tools cannot guarantee performance. Past
performance is no guarantee of future results. The information provided may contain projections or other
forward-looking statements regarding future events, targets, or expectations, and is only current as of the
date indicated. There is no assurance that such events or targets will be achieved and may be significantly
different than that shown here. The information presented, including statements concerning financial
market trends, is based on current market conditions, which will fluctuate and may be superseded by
subsequent market events or for other reasons. The charts depicted within this presentation are for
illustrative purposes only and are not indicative of future performance. The data do not reflect the material
differences between stocks, bonds, bills, and inflation, such as fees (including sales and management fees),
expenses or tax consequences.
FAS Wealth Partners Recognized on Two Kansas City Business Journal Lists Leawood, KS – 12/04/2025 FAS Wealth Partners is proud to be recognized by the Kansas City Business Journal in
Leawood, KS – 10/14/2025 – FAS Wealth Partners is proud to announce its inclusion on the Forbes 2025 list of America’s Top 250 Registered Investment Advisor (RIA) Firms. FAS is the
Trump Accounts: A Strategic Guide for Families | April 2026
What Are Trump Accounts?
Trump accounts are a new tax-advantaged savings and investment vehicle for minors under age 18. These accounts were created under the “Money Account for Growth and Advancement” legislation signed on July 4, 2025, and additional details can be found on the IRS website.
They are designed to help families save for long-term goals such as education, home purchases, and retirement as part of a broader financial planning strategy.
The most powerful feature of Trump accounts is the ability to convert them into a Roth IRA later in life, allowing for tax-free growth.
Who Can Open Trump Accounts
Any U.S. child under the age of 18 with a Social Security number can open a Trump account.
Parents or authorized individuals such as guardians or grandparents can open and manage the account on behalf of the child.
Key eligibility details:
How Do Trump Accounts Work?
Trump accounts function similarly to custodial retirement accounts.
Structure:
At age 18:
Why a Roth Conversion Matters
The Roth conversion strategy is the most important feature of Trump accounts.
When converted to a Roth IRA:
However, timing is critical.
Key considerations:
Trump Accounts vs Other Savings Options
Families often compare Trump accounts to other common strategies.
Trump Accounts
529 Plans
UTMA Accounts
Trump accounts stand out because they offer potential tax-free lifetime growth after a Roth conversion.
Potential Long-Term Growth
Trump accounts can produce significant long-term results when used strategically.
Example scenario:
By age 24, the account can grow to $278,000. After a roth conversion at 24, the Roth IRA reaches approximately $3.07 million by age 59 1/2, 100% tax- and penalty-free.
This makes Trump accounts a powerful tool for building generational wealth.
Gifting and Estate Planning Considerations
Trump accounts introduce new planning opportunities for high-net-worth families.
Important factors:
Despite limitations, Trump accounts can still play a role in multi-generational wealth transfer strategies.
What Are the Risks or Unknowns?
While Trump accounts offer strong potential benefits, some areas remain unclear.
Key unknowns:
Families should monitor updates and work with advisors as guidance evolves.
Is a Trump Account Right for Your Family?
Trump accounts may be a strong fit if you:
They are especially valuable when combined with broader financial and estate planning strategies.
Conclusion
Trump accounts provide a new and flexible way for families to invest in their children’s financial future.
With proper planning, especially around Roth conversion timing, these accounts can create meaningful long-term, tax-free wealth.
As always, it is important to consult with a financial advisor to determine how Trump accounts fit into your overall financial strategy.
Frequently Asked Questions (FAQ)
What is a Trump account?
A Trump account is a tax-advantaged investment account for minors that can later convert into a Roth IRA.
How much can you contribute to a Trump account?
You can contribute up to $5,000 per year per child.
Are Trump accounts tax-deductible?
No. Contributions are made with after-tax dollars.
Can Trump accounts be converted to a Roth IRA?
Yes. After age 18, the account can be converted, allowing for tax-free growth.
Are Trump accounts better than 529 plans?
They serve different purposes. Trump accounts offer broader use and Roth potential, while 529 plans are education-focused.
Sources
https://www.wsj.com/personal-finance/the-hack-that-turns-trump-accounts-into-multimillion-dollar-tax-free-nest-eggs-53d303c3?mod=saved_content
https://www.apolloacademy.com/a-trump-account-for-children-under-18/
https://turbotax.intuit.com/tax-tips/irs-tax-forms/form-4547-how-to-establish-a-trump-account-for-your-child/c8C3uZhxW
https://www.irs.gov/pub/irs-dft/i4547–dft.pdf
https://www.trumpaccounts.com/articles/complete-guide-to-irs-form-4547
Important Disclosures
FAS Wealth Partners, Inc. (“FAS”) is a federally registered investment advisor with the Securities and
Exchange Commission. This material is limited to the dissemination of general information pertaining to
its diversified services. Accordingly, the publication of this material should not be construed by any
consumer and/or prospective client as FAS solicitation to effect, or attempt to effect, transactions in
securities or the rendering of personalized investment or tax advice for compensation, over the Internet.
Any subsequent, direct communication by FAS with a prospective client shall be conducted by a
representative that is either registered or qualifies for an exemption or exclusion from registration in the
state where the prospective client resides. For information pertaining to the registration status of FAS,
please contact the SEC or the state securities law administrators for those states in which FAS maintains
registration or notice filing. FAS current written disclosure statement (Form ADV Part 2A) discussing FAS
business operations, services, and fees is available from FAS upon written request.
The information provided by FAS, or any portion thereof, may not be copied or distributed without FAS
prior written approval. All statements are current as of the date written and does not constitute an offer or
solicitation to any person in any jurisdiction in which such offer or solicitation is not authorized or to any
person to whom it would be unlawful to make such offer or solicitation. The standard fee schedules for
FAS strategies are shown in the firm’s Form ADV Part 2.
This information was produced by, and the opinions expressed are those of FAS as of the date of writing
and are subject to change. Any research is based on FAS proprietary research and analysis of global markets
and investing. The information and/or analysis presented have been compiled or arrived at from sources
believed to be reliable, however FAS does not make any representation as their accuracy or completeness
and does not accept liability for any loss arising from the use hereof. Some internally generated information
may be considered theoretical in nature and is subject to inherent limitations associated therein. There are
no material changes to the conditions, objectives, or investment strategies of the model portfolios for the
period portrayed. Any sectors or allocations referenced may or may not be represented in portfolios of
clients of FAS, and do not represent all the securities purchased, sold, or recommended for client accounts.
Certain portions of this material (i.e., newsletters, articles, commentaries, etc.) may contain a discussion of,
and/or provide access to, FAS (and those of other investment and non-investment professionals) positions
and/or recommendations as of a specific prior date. Due to various factors, including changing market
conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s).
Moreover, no client or prospective client should assume that any such discussion serves as the receipt of,
or a substitute for, personalized advice from FAS, or from any other investment, tax, or financial
professional. FAS is neither an attorney nor accountant, and no portion of the material content should be
interpreted as legal, accounting or tax advice. FAS recommends clients and prospective clients consult their
tax professionals before enacting strategy or recommendation perceived to have been made in this material.
Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not
intended or written to be used, and cannot be used, in connection with the promotion, marketing or
recommendation by anyone unaffiliated with FAS of any of the matters addressed herein or for the purpose
of avoiding U.S. tax-related penalties.
Past performance may not be indicative of future results. Therefore, no current or prospective client should
assume that future performance of any specific investment, investment strategy (including the investments
and/or investment strategies recommended by FAS) or product referred to directly or indirectly by FAS in
its material, or indirectly via a link to an unaffiliated third-party material, will be profitable or equal the
corresponding indicated performance level(s). The standard deviations, information ratios and allocation
targets may be higher or lower at any time. There is no guarantee that these measurements will be achieved.
The information provided should not be considered a recommendation to purchase or sell a particular
security. Any specific securities identified do not represent all the securities purchased, sold or
recommended for advisory clients, and may be only a small percentage of the entire portfolio and may not
remain in the portfolio at the time you receive this report. Different types of investments involve varying
degrees of risk, and there can be no assurance that any specific investment will either be suitable or
profitable for a client or prospective client’s investment portfolio. Historical performance results for
investment indices and/or categories generally do not reflect the deduction of transaction and/or custodial
charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which
would have the effect of decreasing historical performance results.
Due to differences in actual account allocations, account opening date, timing of cash flow in or out of the
account, rebalancing frequency, and various other transaction-based or market factors, a client’s actual
return may be materially different than those portrayed in the model results. The reader should not assume
that any investments in sectors and markets identified or described were or will be profitable. Investing
entails risks, including possible loss of principal. The use of tools cannot guarantee performance. Past
performance is no guarantee of future results. The information provided may contain projections or other
forward-looking statements regarding future events, targets, or expectations, and is only current as of the
date indicated. There is no assurance that such events or targets will be achieved and may be significantly
different than that shown here. The information presented, including statements concerning financial
market trends, is based on current market conditions, which will fluctuate and may be superseded by
subsequent market events or for other reasons. The charts depicted within this presentation are for
illustrative purposes only and are not indicative of future performance. The data do not reflect the material
differences between stocks, bonds, bills, and inflation, such as fees (including sales and management fees),
expenses or tax consequences.
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