Eric Roberge and his family.
Beyond Your Hammock
The passage of the One Big Beautiful Bill Act in 2025 included the creation of a new type of individual retirement account called Trump Accounts. These accounts are designed to be tax-advantaged, long-term savings vehicles for families to leverage on behalf of children born in the US between 2025 and 2028.Seemingly even better than the tax benefits is the fact that the accounts include a $1,000 government deposit when they're opened. Families can also make annual contributions of up to $5,000, which can be invested until the child turns 18.This benefit caught my eye — I'm a financial planner with many clients who are parents, am a parent myself, and am always interested in better understanding potential financial benefits for my 4-year-old daughter.I jumped at the opportunity to analyze the benefits and drawbacks of these accounts, both for myself and for my clients. Here's what I found, and what I've shared with clients.The biggest benefit: an extra $1,000 to your nameLet's start with the $1,000 deposit made by the Federal government for children born between January 1, 2025, and December 31, 2028, who are US citizens with a Social Security number. This is the primary highlight of Trump Accounts.If you have an eligible child, signing up to receive the deposit is worth considering. While an extra $1,000 on your balance sheet is great, that alone may not be enough to make Trump Accounts a superior savings option for your own cash versus alternative vehicles.There are specific reasons that the combination of a 529 plan and a taxable investment account serves as a better option for your own contributions to your children's financial future.
