Up to $5,000 per year can be contributed for each eligible child. Additionally, children born between January 1, 2025 and December 31, 2028 may be eligible to receive a $1,000 contribution from the government. The CEO of Dell has agreed to contribute $250 per child for up to 25 million children born between 2014 and 2024 who live in zip codes where the median household income is less than $150,000.

These accounts are not quite IRAs and come with fewer tax benefits, restrictions on using the funds, and limits on what you can invest in. Here’s what you need to know about Trump accounts and whether or not you should consider investing in one for your children.

How Trump accounts work

How Trump accounts are taxed

Contributions made to Trump accounts by individuals are with after-tax dollars, while contributions from other sources (such as the government, if your child qualifies for the free $1,000) are with pre-tax dollars. Contributions to the accounts do grow tax-deferred, but investment earnings are taxed at ordinary income tax rates upon withdrawal. This is a major drawback to Trump accounts.

Contributions to Roth IRAs are also made with after-tax dollars, and accounts not only grow tax-free, but qualified withdrawals are entirely tax-free. However, custodial Roth IRAs require earned income from the child in order to contribute, a major restriction which Trump accounts do not have.

A better comparison may be custodial brokerage accounts. Contributions to both of these types of accounts are made with after-tax dollars. Trump accounts grow tax-deferred while custodial brokerage accounts do not. Trump accounts are taxed at ordinary income rates while brokerage accounts are taxed at more favorable capital gains rates.

Investments available in Trump accounts

We don’t know exactly what investment options will be offered in Trump accounts. Robinhood Markets agreed to provide technology to power the accounts, and in a screenshot on the official government website for Trump accounts (shown below), the UI looks very similar to Robinhood. The example account is invested in Nvidia, Caterpillar, Home Depot, and Tesla.

The FAQ section on the website states that “funds will be invested in a diversified portfolio of low-cost index funds designed to maximize long-term growth while minimizing risk.” According to Fidelity, mutual funds or ETFs in Trump accounts must be at least 90% invested in US companies, so no international funds will be available. Funds may not have an expense ratio of greater than 0.10%, but, according to the IRS, broker sales commissions can be charged and are not subject to the 0.10% expense ratio limit.

Restrictions on Trump accounts

Since these accounts are designed for children, there are naturally restrictions on how they can be used and when funds can be accessed. Money may not be withdrawn from Trump accounts until January 1st of the year the child turns 18. The rules regarding withdrawals are the same as traditional IRAs, which means money may not be taken out before 59.5 without penalty unless for eligible education expenses, first-time home purchase (up to $10,000), birth or adoption costs (up to $5,000), qualifying medical expenses, disability, or terminal illness.

Trump accounts essentially become traditional IRAs when the child turns 18, and in fact the account may be rolled into a traditional IRA at 18 or kept as a separate account. The money would be treated and taxed the same whether or not it is rolled into a separate account.

Should I open a Trump account?

Trump accounts become available starting July 5th, 2026, and you can open an account by filing Form 4547 with your taxes this year or by using the online portal slated to become available sometime this summer. 

For most families, it may not make sense to open a Trump account for your children. The tax treatment of the accounts makes them inferior to just about every other type of investment account you would consider opening for your child (custodial Roth, custodial brokerage, and 529). Contributions are taxed, and investment earnings are taxed at ordinary income rates upon withdrawal. A custodial brokerage account works similarly, but contributions are taxed at more favorable capital gains rates and there are no restrictions on contributions, investment options, or withdrawals.

If you have or are planning to have a child born between January 1, 2025, and December 31, 2028, though, you should absolutely open a Trump account to take advantage of the free $1,000 contribution from the government. You may also consider opening an account if your child is eligible for the $250 private contribution (they were born between 2014 and 2024 and live in a zip code where the median household income is less than $150,000). Don’t turn down free money even if the account structure isn’t ideal.

Trump accounts are a creative new invention designed to give kids a head-start when it comes to saving for retirement. Unfortunately, the tax treatment of the accounts, limits on investment options, and restrictions on withdrawals limits the use case outside of opening an account to get the free money from the government.

1. Use your existing specialization or expertise

Your quickest path to a successful side hustle is likely monetizing skills you already possess. This can really be anything, and may not even be a skill you use at your main job. If you speak a second language, you could become a tutor for students that speak your secondary language and are looking to learn your primary (or vice versa). If you are skilled at designing websites, try that. If you enjoy being outside, perhaps try landscaping or mowing lawns.

Don’t limit yourself and don’t be afraid to try something out that may not be a sure thing. A side hustle allows you to dip your toes in the water and take risks that would be very difficult to take with your main source of income. If your big idea doesn’t work out, then you’re no worse off than you started.

2. Resell goods online

I have years of experience reselling online myself, and while you can certainly make great money reselling, there are many misconceptions. Reselling is not passive income or easy work. It takes time to build a sustainable and successful business. It is a very competitive space right now, so you will need to be smarter and work harder than your peers to make good money. All that being said, I think it is a great way to earn income.

You can start reselling as soon as…today. Start small by selling some things around the house you no longer use or want. Electronics, clothing, collectibles, video games, household products, you name it, if it’s in your house, you can probably sell it online. If you feel comfortable selling items you already own, try purchasing items specifically to resell. You can buy items to resell at thrift stores, yard sales, estate sales, auctions, and more. Usually the most in-demand items are harder to find, but niche products are often overlooked and can sell for great money. 

3. Good-paying seasonal jobs

Side hustles can be regular jobs that you work in addition to your main job. Many businesses have busy seasons where they are looking for seasonal workers and some can pay very well. UPS is one example of a good-paying seasonal job that could help you get your foot in the door for a regular position. It’s not uncommon for full-time UPS drivers to make over $100,000 per year, and it is a union job with health insurance, a pension, and financial aid for tuition.

4. Market your services on sites like Upwork and TaskRabbit

If you are looking to start your own business, websites like Upwork, Fiverr, and TaskRabbit can help you find customers interested in your services. The types of services offered on these platforms range from specialized work such as writing, logo design, and marketing to assembling a couch or mowing your lawn and everything in-between. Fiverr and Upwork are global websites, so you may be competing with others that are able to offer similar services at a lower cost due to a significant difference in cost of living. However, customers often want to work with someone located in the same country and are willing to pay up for high-quality services.

5. House-sitting or pet-sitting

If you enjoy animals or hanging out by yourself, pet-sitting or house-sitting could be the side hustle for you. You can use apps such as Rover to launch your side business or do it the old-fashioned way by stapling posters to streetlights or posting an ad on Craigslist. People love their pets (or their house) and are willing to pay good money for someone to take care of them (or it) while they are away. For pets, getting to stay at home is often a more enjoyable and less stressful experience than being boarded.

If you do a great job pet-sitting and caring for animals, don’t be afraid to set high rates. The pet sitter we regularly use is a vet student at UGA and takes great care of our cats. She charges more than anyone else we’ve used, but she takes excellent care of our cats and we can truly relax on vacation knowing they are being well cared for. That hasn’t always been the case with past pet-sitters, so we are happy to pay more for peace of mind (and happy cats).

You might have noticed that some of the most popular side hustles, like delivering food or driving for rideshare services, are not on this list. While these can be viable sources of income for some, many areas are oversaturated with gig workers and it is difficult to make even minimum wage after you factor in all of your expenses. Many drivers have no idea how much they actually make because they don’t factor in wear and tear on their vehicle, the cost of gas, time spent waiting in-between jobs, and other expenses. 

It’s difficult to find detailed analyses on real driver pay after expenses, and companies only share gross pay before any expenses or taxes. However, one analysis found that, after accounting for all expenses and cost of operating, DoorDash drivers make $1.45 per hour, on average, with many losing money dashing. A writer that tried driving for Uber last year found they made $10.49/hour after paying for gas. That might sound alright, depending on where you live, but the writer did not factor in wear and tear on their vehicle. If you subtract the standard mileage rate from the IRS of $0.70 per mile, they actually lost money driving for Uber.

Side hustles won’t get you rich quickly and are usually quite a bit of work. Be very wary of anyone telling you otherwise. Side hustles can, though, get you rich slowly. If you are able to invest an extra $200 per month from a side hustle, not a crazy number by any means, you could have almost $500,000 extra by retirement (assuming you start at 30, retire at 65, and earn 8%).  Check out our new compound interest calculator to see what your side hustle could turn into.