Key Takeaways

Eligible children can get $1,000 from the government, tax-deferred. Maben explains a Trump Account works "like an IRA" for children, opened at birth, with the government depositing $1,000 for those born between January 1, 2025 and 2028 who meet IRS citizenship requirements.

Compounding does the heavy lifting. Even with no further contributions, she says that initial $1,000 growing at roughly 4% "is almost going to double by the time they're 18," calling it "free money for your children."

Other funding sources exist too. Employers can now contribute up to $2,500 per employee as of August, and some families below a $150,000 income threshold may qualify for a separate $250 contribution, alongside parent, grandparent and even charitable gifts up to a $5,000 annual cap.

It does not replace a 529 or Roth IRA, it adds to them. Maben stresses these accounts don't count against other account contribution limits, so families can "mix and match," and some even plan to roll the account into a Roth once the child reaches a low tax bracket.

The rules are new and still changing. Maben is candid that "the Trump accounts are making new rules every month since it came out in July," so she tells clients to "just keep watching it," and the funds cannot be withdrawn until age 59 and a half under current rules.

Key Moments

00:36 - What is a Trump Account? The custodial, IRA-like structure and tax deferral.

01:56 - Who qualifies for the $1,000 government contribution? Birth-date and citizenship requirements.

02:26 - Employer and other Trump Account contributions The new employer gift and income-based options.

03:14 - How compounding can grow the money Why the $1,000 head start matters so much.

05:08 - Can you combine Trump Accounts with a Roth IRA or 529? Why it doesn't count against other account limits.

06:54 - Who can contribute, and what is the $5,000 limit? Parents, grandparents, employers and even charities.

10:41 - Trump Account vs. 529: which is better? Why the answer depends on your family's goals.

11:52 - When can kids withdraw the money? The retirement-account-style access rules.

What Is a Trump Account for Kids? Brandy Maben Explains How the $1,000 Grows

Among the new programs to come out of Washington this year, few have generated as many questions as Trump Accounts, child savings accounts created under the One Big Beautiful Bill that went live in July 2026. Brandy Maben, director at Windrock Wealth Management, walked Wealthion through what they are, who qualifies, and how they fit alongside existing college and retirement savings tools. Because the program is brand new and, in Maben's own words, still adding rules every month, this article reflects the details as she described them at the time of recording; confirm current eligibility and rules directly with the IRS or a qualified advisor before acting. Maben's firm is part of Wealthion's advisor network.

What is a Trump Account?

Maben describes it as "a custodial account, basically like an IRA," opened for a child as soon as they are born. The child does not receive full ownership until January 1 of the year they turn 18, and the account works like an IRA in that growth is tax-deferred, so neither the child nor the parent or grandparent who opened it owes tax on it as it grows.

Who qualifies for the $1,000 government contribution?

Children born between January 1, 2025 and 2028 are eligible for a $1,000 deposit from the government, provided they meet IRS requirements including US citizenship; Maben notes the IRS website covers the application process in detail. Families outside that birth window still have other funding paths: as of August 2026, employers can contribute up to $2,500 per employee (split however a family likes among multiple children), and some families with household gross income at or below $150,000 may qualify for a separate $250 contribution depending on where they live.

How does compounding affect a Trump Account?

This is the core of Maben's case for the program. Even if a family never adds another dollar, she says that $1,000 growing at roughly 4% a year "is almost going to double by the time they're 18." Because an account can start at birth, she notes every child using one gets "a head start with the compounding interest" that most adults never had access to as infants, calling it simply "free money for your children" and concluding "it just makes so much sense to get into it if you can."

Can you combine a Trump Account with a 529 or Roth IRA?

Yes, and this is one of its biggest advantages, according to Maben. A Trump Account does not count against the contribution limits of any other account a child might have, a 529, a Roth IRA, a UTMA or UGMA, or a regular brokerage, checking or savings account, so families can "mix and match." She describes one strategy some of her clients use: once a working-age child (often 18, though dependents may need to wait until 26) is in a low tax bracket, they can roll the Trump Account, which is treated like an IRA, into a Roth IRA, incurring a modest tax hit now in exchange for more tax-free growth later. She is careful to add a caveat: "I don't think everyone in America has the means to really fulfill these accounts, much less make it the priority," since for many families a 529 or simple savings may rightly come first.

Who can contribute, and what is the $5,000 limit?

Contributions can come from a wide range of sources, Maben explains: employers, the government's initial deposit, parents, grandparents (as part of the annual gift-tax exclusion), and even charities. The maximum total contribution is $5,000 a year, well below a 529's typical limits, which she flags as a potential downside for families wanting to save more aggressively through this vehicle alone. On timing, she says lump-summing the contribution early in the year captures more compounding, but spreading it out monthly is "better than nothing," and some families may prefer dollar-cost averaging through the year to smooth out market volatility, a decision she frames as depending on individual comfort and cash flow. For related reading on building savings around a family, see Wealthion's piece on passing wealth to your kids the right way.

Trump Account vs. 529: which is better?

Maben's answer is that it genuinely depends on the family. Some of her clients have 529 plans so fully funded that they expect to pass them down to grandchildren, which might argue for directing new savings into a Trump Account instead. Other families are skeptical of a traditional four-year college path for their children and want more flexibility than a 529, historically, offers, even as 529 rules themselves evolve. Her bottom line: "it really depends on your goals in the end for the child and what you want to accomplish." Unlike a 529, which is earmarked for education, a Trump Account functions more like a retirement account: current rules do not allow withdrawals until age 59 and a half.

Are there other ways to save for education?

Beyond 529 plans, Maben mentions university tuition prepayment options and simply gifting cash directly, which can come with its own deduction considerations. She stresses that the right mix of accounts, a 529, a Trump Account, a Roth IRA, or something else, depends on a family's specific goals and circumstances, which is why she recommends discussing priorities with a financial advisor rather than defaulting to any one option. Related reading: Wealthion's explainers on whether your 401(k) is actually protected and how to avoid capital gains tax through Opportunity Zones. As always on Wealthion, this is Maben's general, educational guidance, not personalized advice for any individual family.

What Investors Should Watch

• Program rule changes: Maben notes new rules have been added monthly since the July 2026 launch; confirm current details before acting.
• Your own 529 funding status: whether it is already on track to fully cover education costs, which affects whether a Trump Account makes sense as a priority.
• The $5,000 annual contribution cap: notably lower than typical 529 limits, a real constraint for families wanting to save more.
• The age-59-and-a-half withdrawal rule: a key difference from a 529's education-focused access.
• Employer and community contribution options: the new $2,500 employer gift and income-based $250 contributions some families may qualify for.

FAQ

What is a Trump Account for kids? A Trump Account is a custodial, IRA-like savings account for children, created under the One Big Beautiful Bill and live since July 2026. According to Brandy Maben, it grows tax-deferred, and the child does not gain full ownership until January 1 of the year they turn 18.

Who qualifies for the $1,000 government contribution? Children born between January 1, 2025 and 2028 who meet IRS requirements, including US citizenship, are eligible for a $1,000 government deposit. Families outside that window may still qualify for other contributions, including a new employer gift of up to $2,500.

How much can you contribute to a Trump Account? The maximum total annual contribution is $5,000, from any combination of parents, grandparents, employers, or even charities, which Maben notes is lower than a typical 529 plan's limits.

Is a Trump Account better than a 529 plan? According to Maben, it depends on the family's goals. A Trump Account does not count against a 529 or Roth IRA's contribution limits, so many families can use both; some may prioritize a Trump Account once their 529 is already fully funded.

When can a child access the money in a Trump Account? Under current rules, as Maben describes them, withdrawals are not permitted until age 59 and a half, similar to a retirement account, unlike a 529, which is designed for education expenses. Program rules are new and continuing to change.

Which expert and interview does this article reference? This article draws on Wealthion's interview with Brandy Maben, director at Windrock Wealth Management: "Trump Accounts Explained: How $1,000 Could Grow Into Much More."

If you want help deciding whether a Trump Account, a 529, or a Roth IRA makes the most sense for your family's goals, you can request a free portfolio review from an advisor who understands real assets at wealthion.com/advisors.

Full Transcript

Speakers: Maggie Lake (Wealthion host) and Brandy Maben (director, Windrock Wealth Management). ASR errors corrected (names, terms) and filler removed; meaning preserved. A mid-interview Wealthion membership message has been noted rather than reproduced.

Brandy Maben (cold open): You are eligible to get $1,000 from the government deposited into the account. Even if you only got the $1,000 and it grew at, let's say, 4%, it's almost going to double by the time they're 18. I don't think everyone in America has the means to really fulfill these accounts.

Maggie Lake: Hello and welcome to Wealthion. I'm Maggie Lake. Joining me today to give us an overview of Trump Accounts is Brandy Maben, director at Windrock Wealth Management. Hi Brandy, it's great to see you again.

Brandy Maben: Hi, great to see you too. Thanks for having me.

Maggie Lake: There are a lot of programs and offers coming out of Washington these days, but one of the new plans that has generated a lot of conversation and questions is the Trump Accounts, aimed at children. They were announced as part of the One Big Beautiful Bill, but they just went live this past July. So let's break down the general details so people can understand if it's something to talk to their advisor about. First, what is a Trump Account?

Brandy Maben: A Trump Account is a custodial account, basically like an IRA, for children that can be opened as soon as they're born. They don't receive full ownership of it until January 1st of the year they turn 18. It works like an IRA because the tax on it is deferred, so as it grows, neither they nor the parent or grandparent who opened it is responsible for the tax.

Maggie Lake: I think there were some offers to seed it with money too, which is part of the attractiveness. Who qualifies, and does everyone get that initial investment from the government or its partners?

Brandy Maben: There are a couple of different funding options. If you were born January 1st of 2025 up until 2028, you're eligible to get $1,000 from the government deposited into the account, which is fantastic. You do have to follow some IRS requirements, including being a US citizen, and the IRS website gets quite detailed on the application process. If you aren't in that age bracket, there are other funding opportunities. Some candidates can get $250 if your household's gross salary is $150,000 or less and your zip code qualifies. As of August, you can also get $2,500 from an employer gift, per employee, so if you have two kids you could give it all to one this year and the other next year, or split it in half. It's a fun benefit that's come about.

Maggie Lake: That's really interesting. Hopefully by the time they're 18 you can settle any arguments about favorites at the holiday table. These amounts, $1,000, $250, $2,500, are interesting on their own, but compounding is what makes this really interesting. What are the advantages and disadvantages?

Brandy Maben: Anyone starting an account on the day of birth is ahead of most of us; I didn't invest at one year old. So children and grandchildren get a head start on compounding. Even if you only got the $1,000 and it grew at, say, 4%, it's almost going to double by the time they're 18, without adding a dollar more. It's free money for your children. It just makes so much sense to get into it if you can. [Membership message noted.] Another advantage is that it doesn't affect any other account you can open for a child: you can still have an IRA, a Roth, a UTMA, a UGMA, a normal brokerage, checking, or savings account. You can mix and match. So entrepreneurial kids earning a little money through marketing or other work can have a Roth IRA and this. I'd also say that once that child is of working age, sometimes 18, though dependents might have to wait until 26, you could roll this account over, since it's treated like an IRA, into a Roth while the young adult is in a very low tax bracket, taking a modest tax hit now for more tax-free money later. That's the most advantageous strategy I'm seeing, and it's what I discuss with clients if the fact pattern fits. I don't think everyone in America has the means to really fulfill these accounts, much less make them the priority; sometimes the priority is a 529, sometimes simple savings. There are lots of other things to save for, so talk to your financial advisor about your priorities and specific facts.

Maggie Lake: That's a great point, as with everything, every situation is different, but it's nice to know there's another option. Who can contribute to this?

Brandy Maben: Anyone can. An employer can give to it, the government gives the free thousand, parents and grandparents can contribute as part of the annual gift-tax exclusion, and even charities can give to it. It's flexible on who can give. One potential downside is that the maximum contribution is $5,000 a year, which could be plenty depending on your situation, but it's much less than a 529, which could be limiting for some families.

Maggie Lake: Is it easier for someone like a charity or family friend to contribute to this compared with a 529, which is often set up through someone's personal account? Does that make this unusual?

Brandy Maben: They're trying to make it more flexible and opportunistic for more people to give. I have kids, and our godmother gives to their 529 personally every year, so any family member can already choose which account they want to give to. I think this just opens up another option.

Maggie Lake: That's great, and this isn't only relevant if you have a child; it can also help people thinking about the next generation or ways to help someone else's child. If there's a child in your life, is there a way to contribute even if it's not your own child, and should you lump-sum the contribution or spread it out?

Brandy Maben: That's another fact-pattern question. If you have the means to lump-sum it, you'll more likely get more bang for your buck, since compounding starts right away in January. But if your situation only allows monthly contributions for a certain amount per year, do that, because it's better than nothing. People shouldn't be intimidated by the $5,000 mark if it's just part of their monthly paycheck. Some people are also wary of lump-summing at the start of the year in case the market is high in January, and prefer to dollar-cost average through the year to capture volatility.

Maggie Lake: That's exactly why I asked, but again, it depends on your circumstances. If you make a contribution and hit the limit, does it affect your ability as the giver, separate from whether it affects the child's other accounts?

Brandy Maben: It doesn't affect either side. For the giver, it doesn't affect your own 401(k), IRA, Roth, SIMPLE, or SEP contribution limits. For the child, the recipient, it doesn't affect their other qualified accounts like an IRA, Roth, or UTMA. It's flexible in that way too.

Maggie Lake: If someone has to choose, is it clear yet whether this is better than a 529, or is it too soon to say?

Brandy Maben: It depends on the individual. I have clients with 529s so fully funded that their kids will probably gift the 529 to their own grandchildren someday, which is one reason to consider this direction instead. Other families find their kids skeptical of a traditional college path, so they're skeptical of a 529, which is trying to become more flexible, though even its Roth-rollover component is slow-moving and limited year by year. It really depends on your goals for the child in the end.

Maggie Lake: So a 529 is specifically for education, while a Trump Account is presumably just a general savings account to let money grow?

Brandy Maben: It is, but it works like a retirement account. Ages and rules will always change, but right now these kids can't truly take money out until they're 59 and a half.

Maggie Lake: If you don't qualify for the initial government gift, because of income or location, can you still open an account?

Brandy Maben: Yes. And since we've talked about 529s, for people focused specifically on saving for education, there are other options too, similar to an IRA or Roth having stipulations for educational withdrawals. Trump Accounts are making new rules every month since they came out in July, so I tell all my clients we'll just keep watching it and see what flexibility develops. Beyond a 529, there are also tuition prepayment options through universities, or simply paying cash, with gifting from your own accounts potentially coming with a deduction. There are lots of other options for education as well.

Maggie Lake: Fantastic, Brandy. So great to catch up with you. Thank you for shedding light on this. It's a fast-moving topic, so we'll have to keep watching, but it's exciting that there are more options for people to consider.

Brandy Maben: Of course. Thank you.

This article is educational and is not investment, tax, or legal advice. It does not recommend any security. Advisory services are provided by Greylock Peak Investments, LLC, a subsidiary of Wealthion. Wealthion is compensated for advisor introductions; see the Solicitor's Disclosure Document, ADV Part 2A and Form CRS. That arrangement does not influence editorial coverage.