Trump Accounts have captured significant client attention, but families saving for college should still prioritize 529 plans, according to Jeffrey Levine, chief planning officer at Focus Partners Wealth. The Treasury Department has completed automatic enrollment for the accounts, giving every eligible child under 18 with a valid Social Security number an account. Parents must claim the account through the Treasury's app before adding funds, and families of children born from 2025 through 2028 must separately elect the $1,000 federal seed contribution.
On Oct. 7, the Trump administration reported that roughly 70 million children are now enrolled. Temporary Treasury regulations issued in late September 2026 also opened the door to donations of publicly traded U.S. stock to groups of at least 5,000 children, with the shares held for five years. Focus Partners Wealth is part of Focus Financial Partners, which reports more than $500 billion in collective client assets, 6,300-plus team members, and 300-plus completed M&A transactions.
Free money, five funding streams
Levine said the free money is the draw, but the funding mechanics confuse clients – particularly as rules for employer contributions of up to $2,500 a year are finalized. “But there’s been a lot of confusion, especially about the contributions to these accounts, because there’s about five different contributions. You can have your own contributions, employer contributions, the government-sponsored contribution of $1,000, and even contributions from charities,” Levine told InvestmentNews.
JPMorgan Chase, Intel, Steak 'n Shake, Robinhood, and Schwab are among the major companies that have committed to matching contributions to Trump Accounts for their employees. The most common question, Levine said, is how Trump Accounts fit alongside 529 college savings plans. “The college funding issue is still better solved in most cases by the 529 because it provides for those tax-free distributions for higher education expenses. Distributions from those Trump Accounts, while they may be available once the child turns 18, they’re still going to be taxable in most cases,” Levine said.
Rules in flux ahead of the midterms
Levine expects the program to keep changing, and administrative action can hinge on upcoming election results. “The administration has done a lot of finagling right now, even on just administrative rulings. For instance, they weren’t supposed to have stocks, but now companies can contribute stocks, and people will actually have to hold them in their accounts if they receive them. So I think some of it will be done administratively,” said Levine. “The other part of this is going to depend upon what happens in the election, because if Democrats end up taking either the House or the Senate or both of those, then it’s going to be a lot harder to pass legislation related to Trump Accounts simply because I don’t think Democrats will play much ball there.”
Even so, he urged clients not to reposition portfolios around the November 2026 midterms. “Your long-term plan should be your long-term plan, no matter what,” he said. For year-end 2026, Levine is checking for tax-loss harvesting, Roth conversions, income dips relative to next year, and last-minute charitable gifts. “So much of tax planning is about push and pull, push and pull of income, push and pull of deductions,” he said, noting that clients can pull items forward or push them into 2027. “At the end of the game, it’s the person who pays the lowest lifetime taxes that wins the game, not necessarily just the lowest tax bill this year.”
Advisors looking for more context on the auto-enrollment mechanics can review Baird's take on the new questions that have emerged. Meanwhile, the broader retirement landscape continues to evolve, as retirement assets hit $51.2 trillion but advisors shift focus to spending strategies. For those concerned about political risk, a UBS survey shows millionaire investors are seeking advisor help ahead of the midterms.
