Trump Accounts Launch July 4: Families Weigh $5,000 Annual Cap

Not every family plans to max out the accounts. Will Matthews, a senior auditor in Columbus, Ohio, and his wife set up Trump Accounts for their two young children and expect a third child who will qualify for the seed money. They also anticipate each child could receive a $250 charitable contribution from the Dell Foundation, an offer for children 10 and under living in qualifying zip codes.

“If it’s free money, we’ll take it,” Matthews said.

He told CNBC he is unlikely to add more beyond those grants. “These accounts don’t have that many crazy tax advantages for me to be gung-ho on putting all my eggs in this basket,” he said. Instead, he is prioritizing 529 savings accounts for college tuition.

Financial experts have said 529 plans, custodial brokerage accounts and Roth IRAs can be worth considering alongside or instead of a Trump Account, depending on a family’s goals and timeline. The Trump Account’s advantage is the free $1,000 seed from the government and the ability to teach children about investing early.

Bergman’s older son Aven said the account has changed how he thinks about money. “I think it helps people want to invest,” he said. “It also teaches you that you could see the growth in your portfolio.”

The Treasury Department did not provide a breakdown of how many families intend to fund the accounts beyond the seed grant. Matthews’ choice to focus on college savings may become a pattern if the tax benefits of 529s outweigh those of 530A accounts for families with shorter time horizons before education expenses.