A tax-advantaged account in your child’s name — up to $5,000/year total, up to $2,500 of that from an employer (usually tax-free to the worker), plus a possible $1,000 federal seed. Then at 18: traditional IRA rules, and a powerful Roth conversion strategy.
Education only · not tax, legal, or investment advice · rules can change — verify at IRS / trumpaccounts.gov
This is what the law actually does — not the podcast shortcut version. We keep the numbers clean so parents and sponsors can trust the brand.
Illustrative only — using a 10% average annual return (same ballpark as the long-run S&P 500 story we teach on the home page). Markets go up and down. This is a teaching tool, not a forecast.
| Plan (birth → 18) | You put in | ≈ At age 18 | If left alone → age 65 |
|---|---|---|---|
| Seed only ($1,000 once) | $1,000 | ≈ $5,600 | ≈ $500k |
| Employer max ($2,500/yr) | $45,000 | ≈ $114k | ≈ $10M |
| Full room ($5,000/yr) | $90,000 | ≈ $228k | ≈ $20M |
Rough math: annual contributions for 18 years, then zero new contributions for 47 more years at 10%. Seed-only row is the $1,000 pilot alone. Real life will be different — fees, contribution timing, market years, and taxes on conversion all matter.
Fill the Trump Account while they’re a kid. At 18, treat it like a traditional IRA. In low-income years, convert to a Roth so decades of growth can come out tax-free. That’s how a “kids account” becomes generational wealth.
This is the part most headlines skip. After the growth period, the account generally follows traditional IRA rules. That unlocks a classic move: pay tax while your kid’s rate is low, then never pay tax on the growth again.
Converting during high school / early college can sometimes collide with kiddie tax rules (unearned income taxed at parent rates). Many planners prefer converting when the young adult is filing on their own at a truly low rate. Talk to a tax pro before a big conversion — one conversation can save five figures.
Honest choice. Both are “allowed” once IRA rules kick in — but they are not equal for wealth.
Pay a small tax bill young. Leave the pile alone until retirement (or much later). At the numbers above, full funding can illustrate multi‑million outcomes by 65 — tax-free if Roth rules are met.
After 18, money can leave the IRA — but it is not free cash. Expect income tax on taxable portions and often a 10% penalty before 59½ unless a narrow exception applies (education, first home up to limits, etc.).
Want to start a company at 18–25? Learn to sell first with near‑$0 capital (our Hustle path). Treat the Trump Account / Roth as the backup rocket fuel — not the default bank account. Burning a six-figure tax-advantaged pile on a first idea is how people trade a $10M future for a $10k experiment. Build → prove demand → then decide if any IRA dollars are worth the tax cost.
You’re the buyer of the long game. Ten minutes of admin can change their thirties.
This is one of the cleanest new talent benefits in years — and a natural fit for companies that already care about financial wellness.
Co-brand a 7-day “Open the account + learn the 6 moves” challenge. Employees get the benefit; families get the game; you get usage proof. National program — works in every state.
If a parent or employer is putting money in a Trump Account with your name on it — that’s not monopoly money. That’s future-you.
Claim the account. Ask HR about the $2,500. Teach the Roth plan. Then play — so the money has a brain behind it.