Trump Accounts and Multigenerational Wealth Planning

A New Opportunity to Help Children and Grandchildren Build Long-Term Wealth

One of the greatest advantages families can provide the next generation is time.

Starting early allows compounding to work longer, habits to form sooner, and financial confidence to develop over decades. Newly established Trump Accounts provide another savings vehicle that may help parents, grandparents, and other family members begin building wealth for children earlier in life. These accounts may complement broader family wealth strategies focused on education, financial literacy, legacy planning, and long-term stewardship.

For eligible U.S. citizen children born between January 1, 2025, and December 31, 2028, the federal government provides a one-time $1,000 pilot contribution after the required election is made.

Overview

Established under Internal Revenue Code Section 530A, Trump Accounts are available for eligible children who have not reached age 18 before the end of the calendar year in which the election is made and who have a valid Social Security number. The account is owned by the child, while a parent, guardian, or other authorized individual manages the account until adulthood.

Like other long-term savings vehicles, the account is designed to encourage disciplined investing and long-term wealth accumulation.

Families often focus on transferring assets.

The more difficult challenge is preparing future generations to manage them wisely.

Whether a family’s goal is helping fund future opportunities, encouraging financial responsibility, or creating a long-term legacy, starting early can make a meaningful difference. Trump Accounts provide another opportunity to introduce younger family members to investing, compounding, and long-term financial planning.

Key Features

Feature	Planning Detail
Eligibility	Children under age 18 with a valid Social Security number may be eligible. Eligible U.S. citizen children born between January 1, 2025 and December 31, 2028 may receive a one-time federal pilot contribution of $1,000.
Annual contributions	Families and other eligible contributors may contribute up to an aggregate $5,000 annually, with inflation adjustments beginning after 2027. Employer contributions under qualifying programs may also count toward annual limits.
Tax treatment	Contributions are generally made with after-tax dollars and are not deductible. Assets grow tax-deferred, and future distributions are generally taxed under traditional IRA rules once the growth-period restrictions end.
Investments	During the growth period, investments are limited to low-cost mutual funds or ETFs tracking broad U.S. equity indices, such as the S&P 500 or similar primarily American equity indices.
Withdrawals	Amounts generally cannot be withdrawn before January 1 of the calendar year in which the child turns 18. After that point, the account is generally treated like a traditional IRA for tax and distribution purposes.

 

How Trump Accounts May Fit into a Family Wealth Strategy

Early Wealth Accumulation:

Families frequently ask how they can help children and grandchildren build a strong financial foundation.

The combination of a federal seed contribution, family contributions, and long-term market exposure may create a meaningful compounding opportunity over time.

Teaching Stewardship:

The account itself may be valuable, but the conversations surrounding it may be even more important.

Trump Accounts can create opportunities to discuss investing, delayed gratification, financial responsibility, and long-term planning with younger generations.

Supporting Legacy Goals:

For families focused on multigenerational wealth, the goal is often not simply transferring assets but helping future generations become responsible stewards of wealth.

Accounts designed for long-term investing can complement broader family conversations around legacy, values, and financial education.

Roth Conversion Planning:

After the growth period, beneficiaries with low taxable income may evaluate whether partial Roth IRA conversions make sense. Any conversion strategy should be coordinated with the beneficiary’s tax situation.

Tax-bracket Management:

Rather than taking large taxable withdrawals later, beneficiaries may be able to manage distributions or conversions over multiple tax years.

First-time Home Purchase and Other IRA Exceptions:

Once traditional IRA rules generally apply, certain exceptions to the 10% early distribution penalty may be relevant, including the first-time homebuyer exception, subject to IRS rules.

Coordination with other savings vehicles:

Trump Accounts should generally be viewed as one tool among many. They may complement:

• 529 education savings plans
• Roth IRAs for children with earned income
• Custodial accounts
• Trust structures
• Family gifting strategies
• Estate planning initiatives

Rather than replacing these solutions, they may provide an additional option within a larger family wealth plan. As with any planning decision, these accounts should be evaluated within the context of a family’s broader financial, tax, and estate-planning objectives.

How Trump Accounts Compare

Feature	Trump Account	Roth IRA	529 Plan	UGMA/UTMA
Primary goal	Long-term investing / retirement-style savings	Retirement savings	Education savings	Flexible child-owned savings
Contribution limit	Up to $5,000 annually across permitted contributors; indexed after 2027	Limited by earned income and annual IRA limits	No annual federal limit; gift-tax rules apply	Gift-tax rules apply; no special annual account limit
Tax treatment	Tax-deferred growth; traditional IRA rules generally apply after age 18	Potential tax-free qualified withdrawals	Tax-free qualified education withdrawals	Earnings taxed to child/parents under kiddie tax rules
Investment menu	Limited to qualifying broad U.S. equity index funds/ETFs during growth period	Broad investment flexibility	Plan investment menu	Broad investment flexibility

How to Open an Account

1. Sign in to or create an IRS online account with ID.me.
2. Submit Form 4547, Trump Account Election, for the eligible child.
3. Provide the child’s Social Security number, date of birth, and address.
4. Check the status of the election through the IRS account portal.
5. After approval, follow instructions provided through the official Trump Accounts platform (https://trumpaccounts.gov/)

Who Custodies the Account?

The account is held in the child’s name. Until the child reaches age 18, a parent, guardian, or other authorized individual generally acts as custodian or responsible party. The U.S. Treasury has designated Bank of New York Mellon (BNY) as financial agent to support the program, and Robinhood serves as brokerage and initial trustee for the initial account infrastructure.

Bottom Line

While Trump Accounts are a new savings vehicle, the underlying planning principle is not new:

Wealth is often built through time, discipline, and preparation.

For families focused on helping children and grandchildren get an earlier financial start, Trump Accounts may represent another tool for encouraging long-term investing, supporting financial education, and reinforcing multigenerational wealth planning goals.

The account itself may be useful. The opportunity to help prepare the next generation for financial responsibility may be even more valuable. Please contact your advisor at LVW Advisors to discuss whether a Trump Account fits within your family’s broader wealth, legacy, and planning objectives.

Sources

• Internal Revenue Service, Trump Accounts page, reviewed July 7, 2026.
• Internal Revenue Service, IR-2025-117 and Notice 2025-68 guidance on Trump Accounts.
• S. Department of the Treasury press release designating BNY as financial agent, April 6, 2026.
• BNY and Robinhood program announcements, April and July 2026.
• Fidelity Viewpoints, “What are Trump Accounts and how do you open one?” May 14, 2026.

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Disclosure: This information is provided by LVW Advisors for general information and educational purposes based upon publicly available information from sources believed to be reliable. LVW Advisors cannot assure the accuracy or completeness of these materials. Results are based on a limited number of historical periods and may not reflect future market conditions. Past performance is not indicative of future results. Returns shown exclude dividends, transaction costs, fees, and taxes, which would impact actual results. This analysis does not represent the performance of any specific portfolio or strategy and should not be construed as investment advice or a recommendation to buy or sell any security. Investors should review applicable offering documents and consider their individual circumstances before making investment decisions. All investments involve risk, including the possible loss of principal.