Why My 11-Year-Old Just Got a Trump Account | Nico Anduze

By: Nico Anduze

My daughter turned 11 in May. The day was filled with fun, family, and friends. Like every one of her birthdays, I looked back at old photos and some of her arts and crafts to see the evolution of her intellect, creativity, and character. As a parent, I feel all the emotions and joy of watching her grow into the person she's becoming. As a financial planner, I also take time on her birthday to benchmark her financial preparedness for the future.

It is importance to practice what I preach so I fund her 529 every month as college tuition and expenses loom closer each year. She has a UTMA as well, giving her some financial flexibility down the road for whatever life hands her outside of school. But retirement planning is not something we typically think about with our kids. As we look decades into the future, there will be many variables outside of our control. If we do have the ability to jumpstart our kids' retirement, why not take advantage of it?

A Quick Refresher

Trump Accounts are the new custodial retirement accounts for minors. They were created by the One Big Beautiful Bill Act (Public Law 119-21) and formally established under Section 530A of the Internal Revenue Code. Officially, they went live on July 4, 2026.

Under the statute, a Trump Account is legally a traditional IRA with a few special rules layered on top. A parent or guardian opens and manages the account. The child is the legal owner (the "account beneficiary," in the Code's language). The money contributed will be invested in low-cost, diversified investments. Funding can occur from when the account opens until December 31st of the calendar year the child turns 17. Meaning, you cannot fund the account in the year a child turns 18. Not everything has been fully fleshed out as far as investment fund options and available custodians like Fidelity, Schwab, LPL or Altruist, so be sure to stay in touch with your financial advisor on those updates.

Only a parent or guardian can open a Trump account on behalf of a child, but contributions are not restricted to parents alone. Grandparents, other family members or friends can all contribute money into a child's Trump Account, however the annual $5,000 contribution max still applies.  Employers may be able to contribute up to $2,500/year through a formal Trump Account Contribution Program, but that money still counts toward the same overall $5,000 max for each minor.

There is also a one-time $1,000 government seed deposit that is reserved for children born from 2025 through 2028. Additionally, the Dell Foundation is granting $250 gifts to Trump accounts for kids 10 and under in qualifying ZIP codes. Here is the link to see if your child qualifies.

Why I'm Not Worried About Missing the Free Cash

It's easy to read the headlines about the $1,000 seed deposits and think this account is only worth it if you get one. I disagree. What makes a Trump Account so valuable for our kids is the power of compounding growth over time.

My daughter has seven years until she turns 18, which will usher in life changes like leaving home and choosing the right fit for college. One thing I won't be stressed about is the money I've contributed toward her future retirement. If I contribute the maximum $5,000 a year for the seven years of eligibility she has left, that's $35,000 in total contributions. Assuming those contributions grow in line with the historical average annual return of the S&P 500 of approximately 10%, and I leave the account untouched after that with no further contributions and no withdrawals, here's roughly where that money could be by the time she reaches two milestones of her own:

Milestone End of contribution period: Age: 18; Estimated Account Value*: ~$52,000

Milestone: Halfway to 100!; Age: 50; Estimated Account Value*: ~$1.1 million

Milestone: Approaching retirement; Age: 60; Estimated Account Value*: ~$2.85 million

*This is meant for illustrative purposes only.  All investments involve risk.  Please consult a financial professional before making any financial decisions.

That's the real story of Trump Accounts, in my view. The seed money is a nice headline. The tax-advantaged compounding runway is the valuable wealth-building tool.

What I Recommend Doing Now

• Open the account now. It takes about ten minutes to complete the application, including the IRS Form 4547, through the Treasury Department's mobile app, currently the only official way to sign up for the account. Here is the link with more info.

• Contribute the $5,000 annual max amount while you can. Fund it with automatic monthly contributions. Dollar cost averaging is one of our wealth building mantras, as it beats trying to time the market.

• Treat this like your child's retirement account, not a college fund or a home down payment fund. Different accounts carry different tax treatments and are built for different intentions. Make sure that each one fits into your family's broader financial plan and talk with your financial advisor to be sure you have the right structure in place.

• Don't worry about a gift tax return. The IRS's Revenue Procedure 2026-25 created a safe harbor so ordinary cash contributions to a 530A Trump account qualify for the annual gift tax exclusion without triggering a Form 709 filing.

• Keep an eye on future Roth conversion opportunities. Once your child's account transitions into a traditional IRA at 18, there may be strategic windows of opportunity to convert some or all of it into a Roth IRA. The details here matter and are best worked through with your financial advisor and tax professional when the time comes.

The Takeaway

If you have kids, whether they were born last year and qualify for the $1,000 deposit, or they're pre-teens like mine who don't, the account is still worth opening. The government contribution is a bonus for some families. The power of tax-advantaged compounding growth is available to every child, and it starts the day you begin jumpstarting your kid's retirement.

If you'd like to talk through whether a Trump Account makes sense for your own family and how it can fit alongside your other savings and retirement goals, be sure to reach out to your Financial Advisor at Gerber Kawasaki.

Gerber Kawasaki Wealth & Investment Management is an investment advisor located in California. Gerber Kawasaki Wealth & Investment Management is registered with the Securities and Exchange Commission (SEC). Registration of an investment advisor does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Gerber Kawasaki only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Gerber Kawasaki Wealth & Investment Management 's current written disclosure brochure filed with the SEC which discusses, among other things, Gerber Kawasaki Wealth & Investment Management's business practices, services and fees, is available through the SEC's website at: IAPD - Investment Adviser Public Disclosure - Homepage .

Nico Anduze is a Financial Advisor of Santa Monica, California-based Gerber Kawasaki Inc., an SEC-registered investment firm with approximately ~$4.78B billion in assets under management and assets under advisement as of 6/30/26. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which course of action may be appropriate for you, consult your financial advisor. No strategy assures success or protects against loss. Readers shouldn't buy any investment without doing their research to determine if the investments are suitable for their situation. “All investments involve risk and one should consult a financial advisor before making any investments. Past performance is not indicative of future results."