An analysis prepared for your family.

Adjust the inputs below to model how funding a Trump Account today translates into tax-free retirement wealth for the next generation. All projections update live.

Account at Age 18

Before Roth conversion

Roth Value at Age 65

After conversion + tax-free growth

Conversion Tax Cost

Total federal tax over conversion years

Head Start Multiplier

0×

vs. starting after college

Customize Your Plan

Move the controls to model your family's situation. Every projection updates instantly.

Family

Child's Name

Parent or Grandparent

Trump Account

Child's Current Age 0 years

Eligible for $1,000 federal pilot

Annual Contribution

Assumed Annual Return 6.0%

Roth Conversion

Start Age

Years

Earned Income (per year)

529 Plan (Optional)

Existing 529 Balance

Annual 529 Contribution

Account Growth Path

From birth through retirement: contributions build the Trump Account, conversions move funds to a Roth IRA, and tax-free growth continues to age 65.

Total Contributed

Pilot + family contributions

Account at Age 18

Pre-conversion balance

Roth at Conversion End

After all conversions complete

Roth at Age 65

Tax-free retirement assets

The Cost of Waiting

What an early start is worth

Same dollars contributed, same return, only timing changes. Funding now versus waiting until your child has earned income.

Scenario A — Funding Now

Trump Account + Roth conversion strategy

Scenario B — Waiting for Earned Income

Direct Roth IRA contributions

The Difference

0× the retirement assets

MethodologyBoth scenarios contribute the same dollar amount per year for the same number of years and earn the same assumed annual return. Scenario A funds the Trump Account from your child's current age through age 17, converts to a Roth IRA over the conversion period, then grows tax-free to age 65. Scenario B contributes the same annual amount directly to a Roth IRA beginning when the child has earned income, for the same number of years. The only variable is timing.

Why This Vehicle

Trump Account vs. Taxable Brokerage

The same dollars, the same return, the same number of years — comparing the Trump Account to a custodial brokerage account showing how tax treatment shapes the outcome.

Taxable Brokerage

After 15% LTCG tax drag

Trump Account → Roth

Tax-free retirement income

Value of the Strategy

0× the spendable assets

MethodologyBoth scenarios receive identical contributions and earn the same assumed annual return. The taxable brokerage assumes a simplified 15% long-term capital gains drag on growth — modeled as cost basis equal to contributions, with gains taxed at liquidation. State income tax not included. Actual brokerage tax treatment depends on holding periods, distributions, and the investor's income bracket; this is a high-level illustration of why the Trump Account → Roth structure can be meaningfully more tax-efficient over decades.

Contribution Sensitivity

How much should you commit?

Different contribution levels and what each produces — assuming the same age, return assumption, and conversion strategy.

Daily

Cost per day for 18 years

Weekly

A meal out, redirected

Monthly

Same as a phone bill

Total Out-of-Pocket

Over the funding period

Annual Contribution	Total Contributed	Account at Age 18	Roth at Age 65	vs. Late Start

Reading the TableEach row holds the child's age, growth rate, conversion plan, and earned-income assumption constant — only the annual contribution changes. The federal $1,000 pilot is included where the child is eligible. Cost-per-day framing uses the current contribution selection in the inputs panel.

Conversion Strategy

Roth Conversion Plan

Converting during low-income years lets basis flow through tax-free and earnings be absorbed by the standard deduction.

Total Tax-Free

Basis recovered through conversion

Total Federal Tax

Effective rate: 0% on amount converted

Total to Roth IRA

Net amount after tax

Age	Account Value	Conversion	Tax-Free	Taxable	Federal Tax	Net to Roth

Tax MethodologyThis illustration uses 2025 federal tax brackets (single filer) with a $15,000 standard deduction. Each year's taxable conversion equals the conversion amount times the earnings-to-value ratio at the start of that year. Tax owed reflects only the marginal tax on the conversion above the beneficiary's earned income. State income tax is not included. Form 8606 must be filed each year to maintain the basis tracking that makes this strategy work.

529 Coordination

Layering a 529 Plan with the Trump Account

A 529 plan can convert to a Roth IRA under SECURE 2.0 — capped at $35,000 lifetime per beneficiary, with earned-income and account-age requirements.

No 529 plan configured. Enter a starting 529 balance or annual contribution in the inputs panel to model how a 529 layers with the Trump Account strategy. The 529-to-Roth rollover provision under SECURE 2.0 transfers up to $35,000 over multiple years to your child's Roth IRA — expanding the total tax-free retirement assets your family can build.

Understanding the Strategy

Why It Matters

The Trump Account is straightforward on its own. The opportunity is in how the pieces work together across decades.

The $1,000 Head Start

Children born 2025–2028 qualify for a one-time $1,000 federal contribution. Claimed by filing IRS Form 4547. Free seed money that compounds for 65+ years.

II.

Tax-Deferred Growth

Contributions are after-tax (non-deductible), but earnings grow tax-deferred through age 18. Unlike a taxable account, no annual 1099s and no drag from yearly capital gains distributions.

III.

The Roth Conversion

At age 18 the account becomes a Traditional IRA. Converting in years when the beneficiary has little or no earned income lets basis flow through tax-free and earnings be absorbed by the standard deduction.

IV.

Time Beats Tax Strategy

The single most powerful argument isn't the tax structure — it's time. Eighteen years of compounding before adulthood often produces more retirement wealth than any post-college savings strategy.

The 529 Layer

Under SECURE 2.0, up to $35,000 of a 529 plan can be rolled into a Roth IRA after the beneficiary has earned income. Layering both vehicles can produce tax-free retirement assets and education funding.

VI.

Execution Is Everything

The strategy works only if it's executed: open the account, capture the pilot, contribute consistently, track basis on Form 8606 every year, and convert in the right tax windows. Missing the conversion window costs decades of tax-free growth.

Important Disclosures

This material is for general informational and educational purposes only and is not intended as specific investment, tax, or legal advice. The strategies discussed may not be suitable for all investors. You should consult qualified tax, legal, and financial professionals before implementing any strategy described.

Trump Accounts (§530A) were established under the One Big, Beautiful Bill Act. Information presented reflects guidance available as of the date of publication. Final Treasury and IRS regulations are pending and may differ materially from the proposed rules. Eligibility, contribution limits, distribution rules, and tax treatment are subject to change.

A plan participant leaving an employer typically has four options (and may engage in a combination of these options): 1. Leave the money in their former employer's plan, if permitted; 2. Roll over the assets to their new employer's plan, if one is available and rollovers are permitted; 3. Roll over to an IRA; or 4. Cash out the account value.

Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.

Trump Accounts offer tax deferred growth on earnings. Family contributions are made with after tax dollars, and eligible employer contributions may be excluded from the employee's taxable income. A one time $1,000 federal contribution may be available for eligible children born between 2025 and 2028. Distributions are generally prohibited during the child's growth period and, once permitted, are taxable as ordinary income and may be subject to a 10% IRS early distribution penalty if taken before age 59½. Contribution limits and other restrictions apply, and some rules remain subject to future Treasury and IRS guidance. Consult a qualified tax advisor or financial professional before making decisions.

LPL Financial does not provide tax or legal advice. Roth conversions are taxable events generally subject to ordinary income tax. Account owners should consider tax ramifications, age, and income restrictions before converting. Actual conversion tax cost depends on the beneficiary's income and tax law in effect at the time.

The growth projections, account values, and dollar comparisons shown are hypothetical and for illustrative purposes only. They do not represent actual investments and are not a projection of any specific account. Hypothetical illustrations assume a constant annual return and do not reflect actual market performance. Investing involves risk, including possible loss of principal.

Past performance does not guarantee future results.

529 plan provisions, including the SECURE 2.0 Roth rollover provision, are subject to specific eligibility requirements and may change. State tax benefits vary by state.

Securities and advisory services offered through LPL Financial (LPL), a Registered Investment Advisor and broker-dealer, Member FINRA/SIPC. Arens Wealth Partners and LPL Financial are separate entities. The LPL Financial representative associated with this material may discuss and/or transact securities business only with residents of the following states: AZ, CA, CO, FL, GA, KS, NY, WI.

Check the background of your financial professional on FINRA's BrokerCheck at brokercheck.finra.org. Review the LPL Financial Form CRS at lpl.com.

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