Financial experts are divided on whether Trump accounts are really worth it, but in the end it really depends on your family’s financial goals. This is how they work. The government has created the website Trumpaccounts.gov, where you can find more information and a phone app you can download to manage your account. Families, employers and even charities can contribute up to $5,000 per child each year. The biggest straw is probably for babies born between 2025 and 2028 who qualify to get into the free $1,000 seed fund. The money is in a long-term index fund account and growth is based on stock market performance. Some experts say the accounts have disadvantages compared to other ways to invest for your child. I would of course recommend taking advantage of this administration. To all citizens, but even if you have the disposable income, include it in the *** 529 plan. The more the better. Um, the more tools you use to save and prepare for your future, the better. Now, it’s important to note that Trump accounts have certain restrictions if you plan to withdraw the money before your child turns 18. Once your child turns 18, these Trump accounts behave similarly to the traditional IRA, meaning you’ll face tax penalties for early withdrawals if the money isn’t used for certain exceptions, such as buying a home or funding an education. Reporting in Washington, I’m Amy Liu.
Are Trump accounts worth it? This is what financial experts say
Some suggest considering Trump accounts alongside other financial options based on a family’s financial goals.
Updated: July 6, 2026, 2:51 p.m. PDT
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President Donald Trump celebrated the launch of Trump Accounts by ringing the opening bell of the New York Stock Exchange in the Oval Office on Monday morning. The program, which went live on July 4, allows families, employers and charities to contribute up to $5,000 per child annually to each account. Contributions are not tax deductible and the money is invested in long-term index funds whose growth is linked to the performance of the stock market. A big draw comes from babies born between 2025 and 2028 who qualify for a free $1,000 seed fund to open their account. But like all investment accounts, Trump accounts come with their own restrictions and penalties. Withdrawals before a child turns 18 are subject to strict restrictions. Once the child reaches adulthood, the account functions like a traditional IRA, meaning early withdrawals will incur tax penalties unless the money is used for specific purposes, such as funding an education or purchasing a home. Trump claims the accounts will help many young Americans achieve financial freedom. The government says an initial $1,000 deposit could grow to nearly $243,000 by the time the child turns 55, without requiring additional contributions. Several investment calculators confirm that a Trump account could reach about $243,000 by age 55. However, PolitiFact experts also point out that this forecast assumes a 10% annual gain, which some experts believe could vary depending on market developments. At a more conservative annual return of 6.7%, the account could grow to $40,000 in 55 years. Things like taxes and inflation would also affect how much you actually pocket. The restrictions on how much and when the money can be used have led many financial experts to question whether Trump accounts are worth it compared to other traditional investments. Some suggest considering Trump accounts along with other financial options based on a family’s financial goals. Examples of alternatives include 529 plans for education savings, UGMA/UTMA brokerage accounts for flexible savings, and Roth IRAs for income-earning children. Other experts argue that Trump accounts may simply provide families with another way to invest in their children’s future. “The more tools you use to secure and prepare for your child’s future, the better.” Gibbs also says Robinhood, a financial technology company, helps manage the accounts under strict government supervision and ensures parents’ money and information is safe. According to Gibbs, the law prohibits Robinhood from using children’s data to market other products or trading features. Check out more coverage of Trump accounts:
WASHINGTON –
President Donald Trump celebrated the launch of Trump Accounts by ringing the opening bell of the New York Stock Exchange in the Oval Office on Monday morning.
The program, which went live on July 4, allows families, employers and charities to contribute up to $5,000 per child annually to each account. Contributions are not tax deductible and the money is invested in long-term index funds whose growth is linked to stock market performance.
A grand draw consists of babies born between 2025 and 2028 who will qualify for a free $1,000 seed fund to open their account.
But like all investment accounts, Trump accounts come with their own restrictions and penalties.
Withdrawals before a child turns 18 are subject to strict restrictions. Once the child reaches adulthood, the account functions like a traditional IRA, meaning early withdrawals will incur tax penalties unless the money is used for specific purposes, such as funding an education or purchasing a home.
Trump claims the accounts will help many young Americans achieve financial freedom.
The administration says an initial $1,000 deposit could grow to nearly $243,000 by the time the child turns 55, without requiring additional contributions.
Several investment calculators confirm that a Trump account could reach about $243,000 by age 55. However, PolitiFact experts also point out that this forecast assumes a 10% annual gain, which some experts believe could vary depending on market developments. At a more conservative annual return of 6.7%, the account could grow to $40,000 in 55 years. Things like taxes and inflation would also affect how much you actually pocket.
The restrictions on how much and when the money can be used have led many financial experts to question whether Trump accounts are worth it compared to other traditional investments.
Some suggest considering Trump accounts alongside other financial options based on a family’s financial goals. Examples of alternatives include 529 plans for educational savings, UGMA/UTMA brokerage accounts for flexible savings, and Roth IRAs for income-earning children.
Other experts argue that Trump accounts may simply provide families with another way to invest in their child’s future.
“I would recommend taking advantage of the benefits this administration offers to all citizens, but also, if you have the disposable income, incorporating it into a 529 plan,” said Gerson Gibbs, senior managing partner at Belite Capital. “The more tools you use to secure and prepare for your child’s future, the better.”
Gibbs also says Robinhood, a financial technology company, helps manage the accounts under strict government supervision and ensures parents’ money and information is safe. According to Gibbs, the law prohibits Robinhood from using children’s data to market other products or trading features.
Check out more coverage of Trump accounts:
https://www.kcra.com/article/are-trump-accounts-worth-it/71842652
