07/06/2026
🚨 Trump Accounts!
There's been a lot of buzz—but also plenty of confusion. Here are 5 common misconceptions about these new child savings accounts:
⬇️ 1. They're not only for children born after 2025.
Any eligible child under age 18 can open a Trump Account. However, only children born between January 1, 2025, and December 31, 2028 are eligible to receive the government's $1,000 seed contribution.
💰 2. They're intended to encourage long-term savings.
Once the child reaches age 18, the account generally transitions to follow traditional IRA rules, with certain exceptions that may allow earlier access for qualified education expenses, a first-time home purchase, and other qualifying situations.
👨👩👧 3. More than just parents can contribute.
Parents, grandparents, relatives, friends, and even employers (under separate rules) may contribute after-tax dollars, subject to the annual contribution limit.
📈 4. They aren't completely tax-free.
The account grows tax-deferred, not tax-free. Depending on the type of contribution and investment earnings, withdrawals or conversions may result in taxable income.
🌟 5. A Roth conversion could provide significant long-term benefits.
After age 18, some account owners may choose to convert the account to a Roth IRA. While taxes may be due on the taxable portion of the conversion, future qualified Roth earnings and withdrawals could be tax-free.
