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David P. McCabe,
WMCP®, ChFC®, CLU®
Financial Planner
Nathaniel D. High,
CFP®, RICP®
Financial Planner
nathaniel@centuriafinancial.com
Nicholas J. Over, CFP®
Financial Planner
nicholas@centuriafinancial.com
Sara E. Martin
Operations Manager
Molly R. Kelsh
Client Service Specialist
Centuria Financial Group
2333 Baltimore Blvd Suite B
Finksburg, MD 21048
Phone: 443-952-7232
November/December 2026
Turn a Trump Account Into a Tax-Free Nest Egg
Here's a tax-advantaged strategy using a child's Trump retirement account that you may want to discuss with your tax and financial professionals.
The Concept
Your contributions to the child's account aren't tax-deductible. However, the amounts contributed—by you or others— grow tax-deferred, offering a substantial investment advantage that supports your family's long-term goals. Maximize your contributions each year within the allowed limits, which are $5,000 for 2026 and 2027.While the child owns the account, you manage it until they turn 18. After that, contributions and earnings made before age 18 are treated as traditional IRA contributions, subject to a 10% early withdrawal penalty, though these balances can also be rolled over into a Roth IRA.
The Twist
The twist is a series of well-planned Roth conversions. For many young adults, age 18 is an especially good time to begin, since converting amounts that—combined with earnings—stay within the 0% tax bracket means no federal income tax is owed. Similar partial conversions can continue taxfree through the college years. After that, the child can convert the remaining balance and pay tax in that year, or continue partial rollovers until the full balance is converted, potentially paying less tax overall.Benefits
Converting during early, low-income years secures decades of tax-free growth—a lasting tax advantage. Roth contributions, including those from a Trump account established in your child's early years, may be withdrawn tax- and penalty-free before retirement, and your child can later use them to buy a home or start a business.1164455
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David P. McCabe, Nathaniel D. High, and Nicholas J. Over are Financial Planners with, and offer securities and investment advisory service through LPL Enterprise (LPLE), a Registered Investment Advisor, Member FINRA/SIPC, and an affiliate of LPL Financial.
LPLE and LPL Financial are not affiliated with Centuria Financial Group.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
Centuria Financial Group and LTM Marketing Solutions, LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Marketing Solutions, LLC, an unrelated third party. Articles are not written or produced by the named representative.
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