Thread by @FranWalsh73

A 4-year-old with a maxed Trump Account has ~$2.9M waiting at retirement.

That's not the interesting part.

The interesting part is what happens at 18 - when one tax move may be worth $600,000.

Most parents have no idea this window exists.

Here's how it works: ↓

First, kill the #1 misconception:

"Trump Accounts are only for babies born in 2025."
Wrong.

Any child under 18 can open one.

The $1,000 government seed is for newborns born 2025-2028 only.

The account itself is for every child in America under 18.

What any child under 18 qualifies for:

- $5,000/year - from anyone (see below)
- No earned income required
- Tax-deferred growth for decades
- Invested in S&P 500 or U.S. equity index funds
- Contributions can start July 4, 2026

One thing most people miss:

The $5,000 annual limit isn't just for parents.

Anyone can contribute - grandparents, aunts, uncles, family friends, employers, charities.

One $5,000 cap across all contributors.

Every dollar from anyone counts toward that limit.

One more seed contribution most people miss:

The Dell Foundation pledged $250 for children age 10 and under in ZIP codes with median income under $150,000.

Doesn't count toward the $5,000 cap.

~80% of kids 10 and under across 75% of U.S. ZIP codes qualify.

Important: the $1,000 seed and the Dell $250 are mutually exclusive.

Born 2025-2028 (U.S. citizen): $1,000 government seed
Born before 2025, age 10 or under, qualifying ZIP: $250 Dell seed

Open the account. Treasury verifies eligibility automatically.

The compounding math by starting age:

4-year-old → ~$2.9M at 65
8-year-old → ~$1.8M at 65
12-year-old → ~$920k at 65
16-year-old → ~$266k at 65

(Illustrative - $5k/yr, 7%, contributions stop at 18.)

Every year you wait costs your child hundreds of thousands.

How we get there:

$5,000/year from age 4 to 18 (14 years):

→ ~$121,000 at age 18 (7% assumed, illustrative)

Then compounds untouched from 18 to 65.

47 more years at 7%: ~$2.9M.
Your 4-year-old didn't miss anything.

Here's the move most people are completely missing.

At 18, the Trump Account converts to a traditional IRA.

Most 18-year-olds have little to no income.

That makes age 18 potentially the lowest tax rate of their entire life.

This is the Roth conversion window.

The strategy: convert to Roth at 18.

2026 standard deduction (single): ~$15,000

First $15k converted: potentially 0% federal tax.

Next $33k: 10-12% bracket.

~$9,000 in taxes to convert ~$113,000. (Illustrative - assumes no other income.)

Why it matters:

$113k converted to Roth at 18, growing at 7% to 65:
→ ~$2.7M tax-free

Left as traditional IRA, taxed at 22% on withdrawal:
→ ~$2.1M after tax

The Roth conversion at 18 may be worth ~$600k in lifetime tax savings. (Illustrative.)

Key mechanic:

This is a Roth conversion - not a Roth contribution.
Roth conversions don't require earned income.

The child can convert at 18 regardless of whether they have a job.

This is the planning move most advisors haven't mapped out yet.

For teenagers with earned income - the stack:

Trump Account: $5,000/yr (no earned income required)
Roth IRA: up to $7,500/yr (requires earned income)

Same year. Two accounts. $12,500 in tax-advantaged contributions.

Limits are completely independent.

How to open one:

File IRS Form 4547.

Attach to 2025 tax return - due April 15, 2026
Online at - opens July 5, 2026

Contributions start July 4, 2026.

File before April 15 and your child's account is ready the moment contributions open.TrumpAccounts.gov

Watch your benefits package.

Employers can contribute up to $2,500/year to a dependent's Trump Account - tax-free to you.

Schwab, Mastercard, JP Morgan, Chipotle, and Uber have already announced participation.

Ask HR before open enrollment.

Wealthy families don't build generational wealth by accident.
They use every tool - at the right time.

The Trump Account is available to everyone.

The Roth conversion at 18 is the piece nobody's writing about.

Maybe its not for everyone, but its a window that many can benefit from in setting their kids up for the future.

TL;DR - Trump Account + Roth Conversion:
- Any child under 18 qualifies - $5k/yr, no earned income required
- $1k seed: newborns 2025-2028 only
- 4yo maxing = ~$121k at 18, ~$2.9M at 65 (illustrative, 7%)
- File Form 4547 by April 15 or TrumpAccounts.gov by July 5
- At 18: convert to Roth while income is near zero
- ~$9k tax to convert ~$113k = ~$2.7M tax-free vs. ~$2.1M traditional
- Roth conversion requires no earned income
- Stack with Roth IRA if earned income: $12,500/yr total (illustrative)