What are Trump Accounts and Should You Invest in Them for Your Kids?

Video Overview & Insights

Are Trump Accounts for your kids worth it?

Just like anything in life, there are pros and cons, and the “best” choice depends on your situation.

1️⃣ How it works

-After-tax contributions → grows tax-deferred (max $5,000/year)

-Money is locked until 18 → then it turns into a Traditional IRA that your child controls

-Account must be invested in ETFs or Mutual Funds that track U.S. indices (e.g., S& 500).

2️⃣ The big perk

If your child is born between 1/1/2025 and 12/31/2028, there’s a free $1,000 government deposit.

3️⃣ The tradeoffs

👉 Less flexibility before 18

👉 Control shifts to your kid at 18

👉 Different tax + financial aid impacts than a 529 or parent brokerage

Two questions to ask before deciding:

What’s the money for?

How important is control?

The answer will guide you on which type of account to use for your children’s savings.

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SharpEdge Financial is an independent financial planning firm helping Millennial and Gen Z attorneys navigate the complex financial decisions that they face daily. Whether you’re just starting off in Big Law, about to make partner, or considering moving to an in-house role, we can help.

*This post is for general education only, not financial, tax, or legal advice

Financial Advisor for Big Law Attorneys. Fee-Only Financial Advisor Dallas. Fiduciary Financial Advisor. Financial Planner.