So listen…
They created a brand new savings account for children called a Trump Account, and the headlines are making it sound like an easy wealth-building win for kids.
So I read the fine print.
Here’s the quick version:
You may be able to contribute up to $5,000 a year for a child under 18 with a Social Security number. The money goes into approved index funds, grows tax-deferred, and generally cannot be touched until the child turns 18.
At 18, it becomes a traditional IRA-style account in their name.
Babies born between 2025 and 2028 may also qualify for a one-time $1,000 government deposit.
Sounds good on the surface.
But here’s what people need to understand:
Tax-deferred is not tax-free.
A 529 can be tax-free for education.
A Roth IRA can be tax-free for retirement.
A Trump Account may still create taxes later when your child takes the money out.
Also, that $1,000 deposit is only for children born between January 1, 2025 and December 31, 2028. If your child was born before 2025, they may qualify for the account, but not the free money.
I looked into this for Chloe. She may qualify for the account, but not the government deposit. And when I compare it to a 529, custodial options, or eventually a Roth IRA, I am not convinced this is the best move for us right now.
That does not mean it is wrong for your family.
It means you deserve the full picture before you decide.
Because this is not just a cute savings account.
It is a future tax situation.
I broke the full thing down on the blog so you can compare the rules, the tax treatment, and the other options side by side.
Read the full Trump Accounts breakdown → Trump Acccounts Explained!
(link to blog-trump-accounts-explained)
Just keep that in mind.
— Lohnnie
P.S. Tax refunds are up 11% this year thanks to the new deductions under the One Big Beautiful Bill. If your refund was bigger and you were not sure why, I broke that down too.
Read: Tax Refunds Are Up 11% — Here’s Why → Tax Refunds Are Up!
(link to blog-tax-refunds-up-11-percent)