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Give Your Child or Grandchild A Head Start On Retirement With a Trump Account, #314

Retire With Ryan

Release Date: 07/14/2026

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On July 4, 2026, a groundbreaking opportunity opened for parents and guardians aiming to give their children a head start on their financial journey: Trump Accounts. Created as part of the OBBA Tax Act (“One Big Beautiful Bill” Tax Act) of 2025, these tax-advantaged investment vehicles provide a unique way to grow wealth for minors. In this episode, I break down what Trump Accounts are, who’s eligible for generous bonuses, how to get started, and how they compare to other common savings options like 529 plans.   You will want to hear this episode if you are interested in... [00:00]...

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More Episodes

On July 4, 2026, a groundbreaking opportunity opened for parents and guardians aiming to give their children a head start on their financial journey: Trump Accounts. Created as part of the OBBA Tax Act (“One Big Beautiful Bill” Tax Act) of 2025, these tax-advantaged investment vehicles provide a unique way to grow wealth for minors. In this episode, I break down what Trump Accounts are, who’s eligible for generous bonuses, how to get started, and how they compare to other common savings options like 529 plans.

 

You will want to hear this episode if you are interested in...

  • [00:00] Understanding Trump accounts for children
  • [04:22] What are the baby bonus qualifications?
  • [09:04] Opening a Trump investment account
  • [11:37] Comparing Trump accounts to 529 plans
  • [16:07] Converting IRA for tax-free growth
  • [17:15] Benefits of Trump accounts 

 

Unlocking the Potential of Trump Accounts

Trump Accounts are designed for children under 18 who have a valid Social Security number. Funded with after-tax dollars, these accounts work similarly to retirement accounts, with investments inside the account compounding tax-deferred. That means any dividends, interest, or capital gains grow without being taxed until withdrawal—effectively turbocharging your child’s investment returns.

Once the child turns 18, the account automatically converts to an IRA in their name. Withdrawals are then subject to traditional IRA distribution rules: generally, penalty-free access begins at 59½, although exceptions exist, such as those for first-time homebuyers or qualified education expenses.

 

Who’s Eligible for Bonuses?

One of the biggest draws of Trump Accounts is the potential for substantial bonus contributions.

 

  • $1,000 Federal Bonus: Children born between January 1, 2025, and December 31, 2028, automatically qualify for a $1,000 government deposit. This eligibility is irrespective of parental or child income, provided the child is a US citizen with a valid Social Security number.

 

  • $250 Dell Foundation Grant: For children born before 2025 who are under 10 years old, the Michael and Susan Dell Foundation offers a $250 grant. Eligibility extends to those living in zip codes where the median household income falls below $150,000. 



Trump Accounts vs. 529 College Savings Plans

Given the array of college savings vehicles available, how do Trump Accounts stack up to the well-established 529 plan? Here’s a quick comparison:

529 Plans: Designed specifically for education expenses, 529 plans offer tax-deferred growth and tax-free withdrawals for qualified expenses. They also allow conversion of up to $35,000 to a Roth IRA under certain conditions if the funds are unused for education costs.

Trump Accounts: More flexible since, after age 18, the funds move to an IRA in the beneficiary’s name. While distributions for education from a Trump Account IRA are taxed as ordinary income (with penalties waived for qualifying expenses), the account’s chief power is in supercharging long-term retirement savings for the child.



Should You Open a Trump Account?

If your child or grandchild qualifies for the $1,000 or $250 bonuses, opening an account is almost a no-brainer. For others, the decision will come down to your savings goals. Trump Accounts offer unmatched momentum for retirement savings, while 529s are still preferred for pure college saving. The earlier you start, the greater the rewards of compounding. 

 

Resources Mentioned

 

 

Connect With Morrissey Wealth Management 

www.MorrisseyWealthManagement.com/contact



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