Potential Loophole Could Transform Trump Accounts into Tax-Free Wealth Building Tool for Older Children

The TRUMP Accounts program, established under the One Big, Beautiful Bill Act, initially appeared most beneficial for newborns receiving automatic $1,000 seed money from the Treasury. For children born between 2025-2028, these government-funded investment accounts represent a straightforward wealth-building opportunity.

However, a potential regulatory loophole could extend their value to older children previously excluded from the program's benefits. The key lies in possible Roth IRA conversions at age 18—a move that WOULD create tax-free growth opportunities during young adults' typically low-income years.

Current IRS guidance remains pending, leaving families in suspense about whether this strategic financial planning option will materialize. The accounts' limited investment choices and uncertain tax treatment currently make them less attractive than traditional savings vehicles for non-qualifying children.