Trump’s account could be an ‘important step’

BlackRock CEO Larry Fink said Mr. Trump’s account could be a successful early wealth building tool for American children when combined with other investment vehicles.

In his annual Chairman’s Letter to Investors, released on Monday, Mr. Fink said this type of policy could provide a high return on investment. “On average, people who accumulate wealth early are more likely to earn advanced degrees, start businesses, and own homes,” he wrote, citing a 2023 research paper by the Aspen Institute.

“We will see how these accounts evolve, but if they are structured thoughtfully and combined with existing investment vehicles for education and retirement, such as 529 and 401(k) plans, this could be a very important step in helping more young Americans grow up with the country,” Fink wrote.

A 529 college savings plan is another tax-advantaged investment option that allows families to save on behalf of their children, usually toward future education expenses. Alternatively, a 401(k) plan is a retirement savings tool available to most employers.

Some details of President Trump’s account remain unclear, but some financial advisers say they are optimistic about combining the account with other investment options.

“Generally, I agree with Larry,” said Lee Baker, a certified financial planner and founder and president of Claris Financial Advisors in Atlanta. “I’m all for giving more people access sooner.”

“Giving Americans more opportunities to save and invest will help more individuals and families build wealth and address the wealth gap,” Margherita Chen, CFP and CEO of Blue Ocean Global Wealth in Gaithersburg, Maryland, told CNBC.

Mr. Baker and Mr. Chen are both members of CNBC’s Financial Advisory Council.

The tax-deferred Trump account, also known as a 530A account, includes a one-time deposit of $1,000 from the Treasury for children born between 2025 and 2028.

BlackRock is one of several large employers that has pledged to match $1,000 in seed money from the Treasury for the children of U.S. employees. Philanthropists in multiple states have also committed to seeding accounts to certain eligible families.

To set up an account and receive $1,000 in Treasury funds, a parent or guardian must file IRS Form 4547 with their 2025 tax return or via TrumpAccounts.gov. The “certification process” is expected to take place in May, and the seed money is expected to arrive on July 4th.

“The fact that virtually anyone can contribute is an incredible bonus,” Baker said.

Parents, guardians, friends and others can contribute up to $5,000 a year after taxes to Trump’s account. Meanwhile, businesses can deposit up to $2,500 per year before taxes as part of the $5,000 limit. This limit is indexed to inflation from 2027 onwards.

As of March 8, families had submitted nearly 3.5 million applications to open Trump accounts, with more than 800,000 eligible for the $1,000 pilot contribution, according to a Treasury Department release.

Fink also emphasized the need for early wealth creation in his 2025 Chairman’s letter, writing: “When people own a piece of the economy, they not only benefit from growth, they believe in growth. Ownership creates connections.”

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