When Congress creates a new savings account, there’s usually a lot of excitement, a lot of headlines, and eventually a lot of confusion. Trump Accounts are no different.

Our view is pretty simple: If your family qualifies for the free $1,000, take it.
After that, pause before directing additional savings there. In many cases, we still believe there are better tools available.

A Trump Account is a new tax-advantaged investment account for children under age 18. The investments are intentionally simple: low cost, broadly diversified U.S. stock index funds.

Children born between January 1, 2025, and December 31, 2028, who meet the eligibility requirements, may receive a one-time $1,000 contribution from the federal government. Family members can also make annual contributions, subject to contribution limits.

If you have:
• A child born between January 1, 2025 and December 31, 2028 (like me)
• A grandchild in that age range
• A niece or nephew whose parents may not have heard about the program

It’s worth making sure someone claims the government’s contribution.

This is where we think it’s helpful to separate the headline from the planning.
The headline is the free $1,000. The planning question is whether this should become your primary savings vehicle. For most families, our answer is no. If your goal is education, a 529 plan is often the better choice. If your goal is flexible gifting, a custodial or trust investment account may provide greater flexibility. If your goal is retirement, maximizing your own retirement accounts is frequently the highest impact decision you can make. Trump Accounts are another tool, not a replacement for the others.

One feature we do like is that these accounts eventually transition into something that functions much like a Traditional IRA.

That creates the possibility of converting the account to a Roth IRA during early adulthood, when many young adults have relatively little taxable income. Decades of tax-free growth after a low tax Roth conversion could make that initial $1,000 much more valuable over a lifetime. It is too early to know exactly how often this strategy will make sense, but it is an opportunity we will be watching closely.

At Hill, we don’t chase headlines.
We look for opportunities to make small, intelligent decisions that compound over decades.
For eligible families, claiming a free $1,000 is one of those decisions.

If you have a child or grandchild who may be eligible, here’s how to get started.

Step 1: Confirm eligibility.

Children born between January 1, 2025, and December 31, 2028, who are U.S. citizens with a valid Social Security number, may qualify for the government’s $1,000 contribution.

Step 2: Complete the enrollment process.

Parents or legal guardians will need to complete the required enrollment through the IRS and Treasury’s Trump Account program. If your child is eligible, this establishes their ability to receive the government’s contribution.

Step 3: Activate the account.
Once eligibility has been verified, you’ll activate the account through an approved provider. The Treasury will then deposit the $1,000 for eligible children, and family members can begin making additional contributions if they choose.
As with many new government programs, the rollout is still evolving. We expect additional financial institutions to begin offering Trump Accounts over time, making the process even more straightforward.

Helpful Resources
• IRS Trump Accounts page for eligibility requirements, FAQs, and enrollment information.
• TrumpAccounts.gov for program updates, participating providers, and account activation instructions.

If you have questions about whether a Trump Account fits into your family’s broader financial plan, we’re here for you.