Harford County's Jeff Judge in Yahoo Finance: A Trump Account is not a savings account

By Jeff Judge, CFP®, AEP®, ChFC®, CLU®, Managing Partner, Chesapeake Financial Planners, Forest Hill, MD.

Families across Harford County are asking about the new Trump Account for kids. When Yahoo Finance reporter Rachel Christian asked me about it, my answer came down to one line: a Trump Account is not a savings account.

That surprises people. It is easy to picture a college fund you can dip into for a big expense. These accounts do not work that way. Money generally cannot come out before the year the child turns 18, and after that, retirement account rules apply, which means early withdrawals can carry a penalty. Contributions also have a $5,000 annual limit that is shared across everyone who gives, so parents, grandparents, and employers all count toward the same number.

That shared limit matters close to home. A grandparent in Aberdeen who wants to chip in, or a couple in Fallston whose employer also contributes, should map out who is giving what before anyone writes a check. The same goes for a family commuting into Towson who assumes they have the full amount to themselves.

For children born from 2025 through 2028, a $1,000 federal seed may be available if they qualify, and I would look into claiming it. For education savings, a 529 plan may still be the better fit, since qualified withdrawals are not taxed federally.

The takeaway: decide which dollars belong in a Trump Account and which belong in a 529 plan or a taxable account with more flexibility. The rules are still being finalized, so check current guidance first. This is general information, not individualized advice.

This piece builds on "What is a Trump Account? A complete guide to the new savings program for kids," in Yahoo Finance (September 2026).

Jeff Judge, CFP®, AEP®, ChFC®, CLU®, is Managing Partner at Chesapeake Financial Planners in Forest Hill, MD. Book an intro call.