Forward Focus - July 2026

What is a Trump Account? A new way for children under the age of 18 to have an investment account to save
for retirement. It is basically a Traditional IRA for a child, but with a lot fewer eligibility requirements.

Created under the 2025 tax bill, Trump Accounts allow for contributions up to $5,000/year into an account for a child under age 18. Contributions are made with after-tax dollars (no tax break for the giver) and earnings grow tax deferred. When the child turns 18, the account can be converted to an IRA account for them, at which time, standard IRA tax rules apply. The account cannot be touched (money can’t be taken out) before age 18. During childhood, investments are restricted to low-cost U.S. index funds and/or Exchange Traded Funds (ETFs).

Who can open an account? Parents, Legal Guardian, Grandparent, Adult sibling.

Who can contribute? Anyone! There are no income rules and no earned income requirements!!!
Including (with-in limits) employers, charities and possibly the U.S. government. What are the annual contribution limits? $5,000/year per child (Bonus: Children born between 2025-2028 may be eligible for a one-time $1,000 government contribution when the account is established.)

Are there minimum contribution amounts? No. There are no contribution minimums.

When can I begin making contributions? The first date account contributions can be made is July 4, 2026.

What are contributions invested in? During childhood, investments are restricted to low-cost U.S. index funds and/or Exchange Traded Funds (ETFs). Thus, they will fluctuate and may decline or gain in value. Once converted to a Traditional IRA after age 18, additional investment options are allowed.

Where do I go to learn more? You cannot directly open an account through a bank or brokerage firm. To learn more and establish an account, go to Trumpaccounts.gov and fill out IRS Form 4547.

What if I didn’t vote for Trump and can’t get past the name? Fine. Call it by its legal name: 530A IRA.

Who should consider it? Anyone that wants to provide an investment opportunity for someone under age 18.

A few additional items to consider. 1) You cannot use UTMA proceeds to fund a Trump Account. 2) Trump accounts are designed for retirement, so after age 18 they become traditional IRA’s with the same rules (10% early withdrawal penalty if used before age 591/2 and any distribution counts as taxable income) 3) Unlike a 529 plan, a Trump Account will likely count as a child asset which will impact the FAFSA (Financial Aid) 4) Employers and charities may be eligible to contribute up to $2,500/year towards the $5,000/year limit. Check with your employer to find out. 5) For specific accounts rules/requirements, visit IRS.gov or consult a tax professional.

Overall, a Trump Account is a great option to save for a young person’s long-term future. It is an especially
unique opportunity for grandparents who seek to potentially enhance their grandchildren’s future in a significant way by utilizing the power of compounding over time (possibly 50-60+ years of tax-deferred growth)! Example: a one-time $5,000 contribution at the birth of a child, growing at 10% annually, would grow to be $27,800 at age 18 and would be worth over $1.5 million by age 60. What an amazing gift for a $5,000 one-time contribution.
The example is hypothetical and is for illustration purposes only. Past performance is no guarantee of future
results.

I would encourage people to consider these accounts, but realize that earlier goals (ALL things before a child turns 60) would need to be addressed with other funds and often times that makes it difficult to fund everything.

Forward’s goal and objective is to provide purpose for your money and to help you to invest wisely to provide for your family and loved ones. This article achieves that objective by informing and educating you of this brand new investment option now available to save for retirement and further improve estate planning options.