Trump Accounts Are Live, But Are They the Best Choice?

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 11 July 2026

⏱️ 28 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

If you'd like to help a child, grandchild, or other young person get started investing, you have a few options when it comes to the type of account to open. Starting this month, a new option is available: Trump Accounts. Fools Robert Brokamp and Joel O’Leary discuss the details, pros, and cons. Topics covered:-Eligibility and contribution limits for Trump Accounts-The tax advantages, including potentially converting them to Roth accounts-The drawbacks, limitations, and potential penalties if money is withdrawn before age 59 1/2-The best use cases for Trump Accounts, and other types of accounts that might be more appropriate for the youngsters in your lifeHost: Robert Brokamp, CFP®, EAGuest: Joel O’LearyEngineer: Bart Shannon Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Trump accounts are live, but are they the best accounts for your kids?
0:06.0	You're listening to the Saturday Personal Finance Edition of the Motley Fool Hidden Gems Investing podcast.
0:15.0	One of the best things you could do for the youngsters in your life is to set them on the road to saving.
0:21.7	After all, time can be an investor's best ally, and no one has more time ahead of them than kids.
0:26.8	If you'd like to help your child, grandchild, or just other young person, get started investing,
0:31.7	you have a few options when it comes to the type of account to open, including a new option, Trump accounts.
0:37.5	It's been possible to open a Trump account now for a few months, but as of July 4th,
0:41.4	they could now also be funded.
0:43.8	Here to join me to discuss the details, pros, and cons of Trump accounts is my foolish colleague,
0:48.4	Joel O'Leary, prolific personal finance writer over at Motley Full Money.
0:52.9	Joel, thank you for joining us. Thank you for
0:56.0	having me, Robert. So let's start by giving just like maybe a 30,000 foot view of Trump accounts.
1:04.1	What are the main details that people need to know about them? Sure. The way I think about
1:10.5	Trump accounts is they're basically an IRA but for kids. So like a retirement account but for kids. And you normally need earned income before you can contribute to a retirement account. But in this case, parents, grandparents, friends, family, or even your employer or government
1:28.8	organizations can contribute to a kid investment account.
1:33.7	This is basically what it is.
1:35.1	Just like you mentioned, they're brand new.
1:37.3	This was originally created as part of the one big, beautiful, wonderful, amazing bill
1:42.9	act.
1:50.0	And they officially launched on July 4th so you can open an account, you can fund an account. Like an IRA, it's got some rules.
1:52.0	So the maximum you can contribute is $5,000 per kid per year.
1:58.0	And the idea is that that money sits and grows tax deferred until the kid turns 18,
	...

Transcript will be available on the free plan in 19 days. Upgrade to see the full transcript now.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from The Motley Fool, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of The Motley Fool and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.