What is a Trump Account and how does it work for new parents?

A Trump Account is a new type of traditional IRA created under the One Big Beautiful Bill Act for eligible individuals under age 18 with a Social Security number. It allows annual contributions of up to $5,000 during a designated growth period, with funds required to be invested in U.S. stocks. Children born between Jan. 1, 2025, and Dec. 31, 2028, are eligible for a one-time $1,000 government contribution. After the growth period, the account can transition to a standard traditional IRA, convert to a Roth IRA, or roll over to another eligible retirement account.

When should I open a 529 plan for my child?

There’s no required minimum age to open a 529 plan — you can open one as soon as your child has a Social Security number. Starting early allows more time for potential investment growth on a tax-deferred basis, and withdrawals for qualified education expenses are tax-free. 529 plans can be used for K-12 tuition, trade schools, undergraduate programs, qualifying graduate schools, and student loan repayment up to certain limits.

Does having a baby count as a qualifying life event for health insurance?

Yes. The birth or adoption of your child is considered a qualifying life event, meaning you can make changes to your health insurance plan outside of the standard open enrollment period. You typically have 30 to 60 days from the birth or adoption date to elect new or updated coverage for yourself and your child. Review your available plan options carefully, considering deductibles, out-of-pocket maximums, and anticipated use.

What estate planning documents do I need before my baby arrives?

At a minimum, consider having a will with a named guardian, a durable power of attorney, a healthcare power of attorney, and a living will in place before your child arrives. Without a will that designates a guardian if you pass away, a court will make that determination. You may also want to consider whether a revocable living trust is appropriate for your situation to help manage assets during incapacity and streamline the transfer of assets after death. Consulting an estate planning attorney can help ensure your documents are legally sound and reflect your wishes.

What is the difference between a 529 plan and a Trump Account?

A 529 plan is a tax-advantaged account specifically designed for education savings, with tax-free withdrawals for qualified expenses ranging from K-12 through college and vocational programs. A Trump Account is structured as a traditional IRA for minors and is designed to build long-term retirement wealth — not education savings. Both accounts can complement each other as part of a broader savings strategy. The right allocation between them depends on your goals, timeline, and overall financial plan.

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