New legislation passed in July 2025 created a new type of government-funded investment account commonly referred to as “Trump Accounts.” Despite the name, these accounts are best understood as a long-term savings tool designed to help children begin building wealth early in life.
Below is a clear, non-technical overview of what Trump Accounts are, how they work, and when they may—or may not—make sense as part of a broader financial plan.
Trump Accounts are investment accounts created for children to encourage long-term saving and investing from an early age. Children born in the United States between January 1, 2025, and December 31, 2028 are eligible to receive a one-time $1,000 government contribution, provided certain steps are taken by the parents.
While the account is associated with legislation signed by Donald Trump, the underlying idea—often called “baby bonds” or child development accounts—has existed for decades and has received bipartisan discussion over the years.
The goal is simple: give children a financial head start and promote long-term investing.
Annual contribution limit: $5,000, adjusted for inflation starting in 2028
Contributions allowed until the year the child turns 17
Parents, relatives, friends, employers, governments, and certain charities may all contribute under specific rules
Before age 18: No withdrawals allowed. After age 18:
Because the rules are nuanced, understanding where the money came from—and how it’s used—matters.
Trump Accounts don’t replace existing tools like 529 plans, Roth IRAs, or custodial accounts. Instead, they may complement them.
A $1,000 government head start (for eligible children)
Tax-deferred growth
Possible employer contributions
No earned income requirement for the child
Restricted investment choices
Complex tax and withdrawal rules
Other accounts may offer better tax treatment depending on the goal
Trump Accounts tend to work best when viewed as one piece of a larger financial strategy. For some families, the right move may simply be claiming the government contribution and letting it grow. For others, layering this account alongside education and retirement planning may add value.
As wealth advisors, our role isn’t to promote every new program—it’s to help families make informed decisions.
We help clients by:
Determining eligibility and next steps.
Evaluating how Trump Accounts fit alongside existing savings strategies.
Managing investments within the account.
Coordinating tax, education, and long-term planning decisions.
Most importantly, we help ensure these accounts support your goals—not complicate them.
Trump Accounts are an interesting addition to the financial planning landscape. Whether they become a long-term fixture or remain a limited-time program, the key is understanding how they work and when they make sense.
If you have questions about Trump Accounts or want to discuss how they could fit into your family’s plan, we’re here to help. Contact us today.
Johnathon Opet, CFP® is a financial advisor located at EmVision Capital Advisors, 251 W. Garfield Rd. Suite 155 Aurora, OH 44202. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at (330) 954-3770 or at info@emvisioncapital.com.
Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Additional advisory services offered through EmVision Capital Advisors, LLC are separate and unrelated to Commonwealth. Fixed insurance products and services are separate from and not offered through Commonwealth Financial Network. Registration as an Investment Adviser does not imply any level of skill or training.