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Roth IRA, 529, or Trump Account? Building blocks for your child's future

Three wooden blocks labeled Trump Account, Custodial Roth IRA, and 529 Plan, side by side under one roof

Each account does a different job: education, long-term savings, or tax-free growth tied to earned income. Here's how they can fit together.

Side by side

Built for
Retirement wealth from earned income
To start
Child needs documented earned income - Halfmore helps with turning household tasks into documented earned income.
Contributions
Up to earned income, max $7,500 for 2026
Taxes
Qualified withdrawals tax-free under IRS rules
Access
Contributions anytime; earnings once qualified

Information as of July 2026. Trump Account regulations are still being finalized - details may change as federal guidance evolves.

What's the difference?

Custodial Roth IRA: the engine
The one is driven by your family - it requires real work generated by your child, and its qualified withdrawals can be tax-free under IRS rules.

529: the education fund
Money with one job - building an education fund. It does that job well and stays in its lane.

Trump Account: the new head start
It arrives on the government's terms - a seed that grows on its own, whether or not your family does anything more.

Do you have to choose just one?

Not necessarily. Many families use two or all three as building blocks to build their child's future - the right mix depends on your child's age, plans, and budget.

A Custodial Roth IRA can help generate long-term tax-free growth ...

while a 529 can help with educational needs ...

and a Trump Account adds another tax-deferred savings option.

Halfmore makes the most complex block the easiest.

A Custodial Roth IRA requires documented earned income. Halfmore helps families turn household tasks into documented income and handles payroll, W-2s, and tax filings.

Household tasksDocumented earned incomeRoth IRA funded
Explore a Custodial Roth IRA

Questions parents are asking

Can my child have all three accounts?
Yes. They have separate rules and separate contribution frameworks, so nothing in current guidance prevents a child from holding all three.
What's the difference between a Trump Account, Custodial Roth IRA, and 529?
They're built differently - a Trump Account grows tax-deferred with retirement withdrawals generally taxed as ordinary income, a Custodial Roth IRA's qualified withdrawals, including growth, are tax-free under IRS rules, and a 529's growth is tax-free when used for qualified education expenses. Many families use more than one.
Does a Custodial Roth IRA require earned income?
Yes - the child must have documented earned income, and contributions are capped at their taxable compensation or $7,500 for 2026, whichever is less. A Trump Account and a 529 don't have this requirement.
Should I open a 529 or Custodial Roth IRA first?
They do different jobs - a 529 is education money, a Custodial Roth IRA is retirement money. The answer depends on your family's goals, and many families hold both.
How does Halfmore help?
Halfmore helps families turn household tasks into documented earned income - with payroll, W-2s, and tax filings handled - which is what a Custodial Roth IRA requires. For Trump Accounts and 529s, this page is an educational comparison only.
More questions
Does a Trump Account require earned income?
No - eligible children can receive contributions automatically, and families can add up to $5,000 per year during childhood (indexed after 2027), with employers able to contribute up to $2,500 within that cap. A Custodial Roth IRA, by contrast, requires the child to have documented earned income.
How do I get the $1,000 Trump Account contribution?
Eligible children born 2025–2028 - U.S. citizens with valid Social Security numbers - qualify when a parent makes the election through the IRS online process. Signup is at TrumpAccounts.gov at no cost.
What counts as earned income for a child?
Legitimate, documented compensation for real work - including household employment with proper payroll, W-2s, and tax filings.
Can't I just fund a 529 and roll it into a Roth IRA instead?
You can roll unused 529 funds into the child's Roth IRA - but it's capped at $35,000 over the child's lifetime, the 529 must have been open at least 15 years, and each year's rollover counts against the child's Roth contribution limit. Under current custodian rules, the child generally still needs earned income equal to the amount rolled that year - so a rollover typically defers the earned-income requirement rather than removing it. And because the 15-year seasoning pushes rollovers toward college age, you miss the decades of compounding that early Roth contributions capture. Treasury guidance on some details is still evolving - check current IRS rules before relying on a rollover strategy.
When can my child access the money in each account?
Trump Account: generally no withdrawals during childhood, with traditional IRA rules applying afterward. Roth IRA: contributions can be withdrawn anytime; earnings are restricted until qualified. 529: tax-advantaged only for qualified education expenses.

Information current as of July 2026. Rules and implementation details may continue to evolve. This page is educational and is not tax, legal, or investment advice.