Trump Accounts: A New Way to Start Building Wealth Early

A new account. A $1,000 head start. And potentially decades of compounding ahead.

If you have young children or grandchildren, Trump Accounts may be worth knowing about.

These new tax-advantaged investment accounts are designed to help families start building long-term wealth for children. Eligible children born between January 1, 2025, and December 31, 2028 can receive a one-time $1,000 federal contribution to their account.

And the $1,000 is just the beginning. Parents, grandparents, family members, and others can make additional contributions, subject to annual limits.

So, how does the tax treatment work?

Think of a Trump Account as having some similarities to a traditional IRA:

• Contributions are not tax-deductible.

• Investments can grow tax-deferred.

• The $1,000 federal contribution isn't taxable income to the child when deposited.

• Once the child turns 18, the account generally becomes subject to traditional IRA rules.

Why should parents care?

Because time is powerful.

Money invested early can potentially compound for decades. A relatively small amount set aside today could become a much larger pool of assets by the time a child reaches adulthood—and beyond.

Trump Accounts aren't a replacement for every other savings strategy, but they could become another tool in a family's wealth-building toolbox.

Have a child or grandchild who may qualify? Let's talk. We can walk through how the account works, the rules around contributions and withdrawals, and whether it fits into your family's overall financial plan.

Want to learn more? Contact us today! (913) 363-7401 | info@riseconsultingus.com.

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