My Gripes AND Enthusiasm for Trump Accounts

Trump accounts are set to open for business on July 4, 2026. Having reviewed the details and understood the intentions for these account, I am left with a strange combination of enthusiasm AND unease. I have three major objections. First, I HATE government programs named for politicians. It reeks of narcissism and sycophancy. Roth IRAs, Obamacare, McCain-Feingold campaign reform and so on. Why burden a program with the complicated legacies of politicians. We all know why this program was named for Trump - even the IRS form number is 4547 - his ego.

Second, this particular reform does little for those that need it most - those at the bottom half of our income distribution who just do not have enough for their own retirements, let alone their kids'.

Finally, these accounts will only be available through a government website, and has two hand-picked financial institutions managing them - BNY and Robinhood. Hmm...nothing shady about that. Why not let us have our accounts where we have all other accounts?

All that said, the policy is poised to become a VERY POWERFUL means to bolster the retirements of middle and upper-middle class children. The account can be worth a lot if funded fully and allowed to compound over the 60-70 year life of your child, or grandchild. Perhaps the most interesting feature is the Roth Conversion eligibility after age 18. Typically, Roth contributions are limited by earned income. What's new here is that the funds, while remaining restricted for withdrawals, are eligible for a Roth conversion after age 18. That's huge. It means converting during the early, low-tax-bracket years of a young person, and many decades of tax-free compounding after. Inspired by Allen Muller, a fellow indie advisor, and enabled by Claude, I have created a model to estimate the value of a Trump account for a young person in your life. Contact us if you would like our help in making a decision, or if you would like us to build a comprehensive financial plan for your family.