My Experience Opening Trump Accounts for My Daughters

Warren Buffett famously said, “Someone’s sitting in the shade today because someone planted a tree a long time ago.”

That idea captures much of what financial planning means to me, both as a financial advisor and as a father. We save, invest, and plan today because we want the people we love to feel more secure tomorrow.

Raising children comes with plenty of immediate expenses. There is childcare, healthcare, school, activities, and all the little costs that add up faster than expected. Parents must also prepare for larger future needs, protect their families against the unexpected, and look for opportunities to give their children a financial head start.

The introduction of Section 530A accounts, commonly known as Trump Accounts, gives families another option to consider. These accounts are not a replacement for 529 plans, custodial Roth IRAs, or traditional custodial accounts. They may complement those strategies as part of a broader financial plan.

I recently opened Trump Accounts for my two daughters because I wanted to understand the process personally before discussing the accounts with clients.

My Experience Opening the Accounts

I used the official Trump Accounts app, and the process initially seemed straightforward. I entered the required information for myself and my daughters and submitted the applications.

One application did not process.

The issue turned out to be simple: I had not entered my complete middle name, so my identity information apparently did not match the underlying records.  However, there was no error message, I just kept saying that the application was processing.  I chatted with a rep via the app on my phone and they were unhelpful.  

So I decided to edit the application slightly by entering my full legal middle name.  Once I entered my full legal middle name, the account opened. I was then able to connect my bank account and begin funding it.

It was a small issue, but it offers an important reminder. Enter your name and your child’s name exactly as they appear on official records. A middle initial instead of a complete middle name, a missing suffix, or another difference may delay the application.

My overall experience was positive. Once I corrected the information, the account-opening and bank-linking process moved quickly.  At this time, you can only invest in a fund that represents a low cost way to invest in the S&P 500 and through Robinhood, but my understanding is that this may change at some point in the future.  

What Are Trump Accounts?

A Trump Account is a type of traditional individual retirement account created for an eligible child. Generally, the child must be under age 18 at the end of the year in which the election is made and have a valid Social Security number.

Children who are U.S. citizens and were born between January 1, 2025, and December 31, 2028, may qualify for a one-time $1,000 federal pilot-program contribution. The Treasury Department reported in June 2026 that nearly six million accounts had been opened, including approximately 1.4 million eligible for the contribution.

Some important features include:

• • No earned-income requirement. Unlike a custodial Roth IRA, the child does not need earned income for authorized contributions to be made.
  • A $5,000 annual contribution limit. For 2026, individual and employer contributions are generally subject to an aggregate $5,000 limit. Certain government and qualified charitable contributions may be excluded from that limit.
  • Employer contributions. Subject to applicable requirements, an employer may contribute up to $2,500 annually to an employee’s account or an eligible dependent’s account without the contribution being treated as taxable income to the employee.
  • Limited investment choices. During the childhood growth period, investments are restricted to qualifying low-cost mutual funds or exchange-traded funds that track broad indexes composed primarily of U.S. equities.
  • Restricted childhood access. Funds generally cannot be withdrawn before January 1 of the year in which the child turns 18.
  • Traditional IRA rules after the growth period. Afterward, the account is generally governed by traditional IRA rules. Taxable distributions may be subject to ordinary income tax and an additional tax for early withdrawals unless an exception applies.
  • Because these accounts invest in the stock market, their value can rise or fall. Contributions and investment returns are not guaranteed, and the account can lose money.

Where Trump Accounts Fit

It may be helpful to think of a Trump Account as one branch of a larger financial tree. The appropriate account depends on what the money is intended to accomplish, when it may be needed, and how much control and flexibility the family wants.

529 Education Plans

A 529 plan is designed primarily for education savings. Contributions are made with after-tax dollars, and earnings and withdrawals may be federally tax-free when the money is used for qualified education expenses.

The account owner generally maintains control over the assets. Illinois residents should also consider whether an Illinois-sponsored plan provides state tax benefits and compare those benefits, fees, expenses, and investment choices with other available plans.

Custodial Roth IRAs

A custodial Roth IRA may be appropriate when a child has legitimate earned income from a job or business activity.

Contributions are made with after-tax dollars, and qualified withdrawals can eventually be tax-free. Contributions cannot exceed the child’s eligible compensation or the annual IRA limit, whichever is lower. The IRA contribution limit for 2026 is $7,500.

UGMA and UTMA Accounts

UGMA and UTMA accounts allow an adult to manage money or investments for a child until the applicable transfer age.

These accounts offer flexibility because the money is not limited to education or retirement. However, the gift is generally irrevocable, the assets belong to the child, and control must eventually be transferred to them. These accounts may also affect financial-aid eligibility differently than parent-owned accounts.

There Is No One-Size-Fits-All Account Choice.

Families often ask which account they should open for a child. The honest answer is that it depends.

A family saving specifically for education may prioritize a 529 plan. A child with earned income may benefit from a custodial Roth IRA. A family seeking broader flexibility may consider an UGMA or UTMA account. A Trump Account may offer another long-term investing opportunity, particularly when the child qualifies for the federal contribution.

For some families, the appropriate strategy may involve more than one account. The goal is not to open every account available. It is to connect each account to a clear purpose.

The Power of Starting Early

The greatest advantage children have is not a particular investment product. It is time.

Starting earlier provides more time for potential compounding, although investment returns are never guaranteed and markets do not rise in a straight line.

These accounts can also become teaching tools. As children get older, parents can show them what they own, how investments fluctuate, and why consistent saving matters.

Opening Trump Accounts for my daughters was both a financial and personal decision. Like most parents, I want to give my children opportunities while teaching them that financial security is built over time.

Trump Accounts will not be right for every family or every dollar a family saves. But they provide another tool parents can evaluate as they begin planting a financial tree for their children.

The shade may be many years away—but that is exactly why planting early matters.

Interested in Working with Us?

If reading this sparked questions about your own portfolio or whether your current allocation remains aligned with your goals for 2026, let’s talk. You can schedule a PersonalPath Intro Call here now. It’s a simple, no-pressure conversation designed to help you understand where you stand — and what steps may support your goals in the year ahead.