UNDERSTANDING THE NEW TRUMP ACCOUNTS
FROM BALTIMORE WASHINGTON FINANCIAL ADVISORS

Lawrence M. Post | CPA, MST, CFP®, CIMA®
Senior Tax & Planning Advisor, BWFA

and
Tyler Kluge | CFP®, ChFEB℠, CPWA®, CDFA®, CEPS, 
Financial Planner, BWFA

About This Episode

New “Trump Accounts” have generated a lot of attention and confusion. This episode breaks down what these accounts are, who qualifies, how they work, and why a wait-and-see approach may be appropriate before making long-term planning decisions.

Full Description

Newly proposed “Trump Accounts” have sparked widespread interest, but many details remain unclear. While headlines have described them as powerful new savings tools for children, the reality is more nuanced and still evolving.

In this episode of Healthy, Wealthy & Wise, the discussion walks through what is currently known about Trump Accounts and how they may function once fully implemented. Listeners will learn who qualifies, when accounts can be opened, and how contributions are expected to work under the proposed rules.

The episode explains that these accounts are designed to allow savings for children under age 18 without the earned income requirement typically needed for IRAs. Contributions are limited annually, grow tax deferred, and generally cannot be accessed until the child turns 18. At that point, the account begins to function more like a traditional IRA, with taxes and penalties applying under standard rules.

The conversation also highlights important limitations and unanswered questions. Custodians have not yet been announced, investment choices appear restricted, and final regulations are still pending. While the government has proposed a one-time starter contribution for certain birth years, families must still decide whether additional contributions align with their goals.

Listeners will hear why these accounts may not be the best option for every family. Depending on the intended use of the money, alternatives such as 529 plans, custodial accounts, or Roth IRAs for working minors may offer more flexibility or tax advantages.

Rather than rushing to act, this episode emphasizes thoughtful planning. Understanding the purpose of the savings and how funds may be used in the future is critical before committing long-term dollars to a new and evolving account structure.

To learn more about how new savings options fit into a broader financial plan, visit BWFA’s Financial Planning Services.