In February, we shared an overview on Trump Accounts, a new federal savings program for children. With the launch on July 4, 2026, we’re revisiting how these custodial accounts compare to other savings options for minors:
- Trump Accounts are designed for long-term wealth building. Investments are restricted to low-cost U.S. equity index funds until age 18, when the account converts to an IRA. Funds aren’t accessible in childhood, so these work best as a retirement foundation, not a source of flexibility.
- 529 Plans remain the stronger choice for education funding, with significant tax advantages and high contribution limits. The account owner retains control, which contrasts meaningfully with accounts that transfer to the child at majority.
- UTMAs offer the most flexibility, with a broad investment range and no restriction on use, but assets transfer fully to the child at the age of majority, and the account generates taxable income annually.
Notably, for families with a child born between January 1, 2025 and December 31, 2028, a one-time $1,000 federal seed deposit will be issued at the program’s launch. No additional contributions are required to receive the deposit, but families can also contribute up to $5,000 per year.
We’re happy to help you think through whether a Trump Account makes sense for your family and walk you through next steps.
The above information is for educational purposes and should not be considered a recommendation or investment advice. Investing in securities can result in loss of capital. Past performance is no guarantee of future performance.
