A new federal savings tool known informally as Trump Accounts officially becomes available with the opening of tax season on January 26, 2026. While the name has attracted attention, the real opportunity lies in how these accounts can support families and potentially serve as a new employee benefit for dental practices.

Created under the One Big Beautiful Bill in 2025, Trump Accounts introduce a new way to help children build long-term savings starting at birth. For dentists and practice owners, the question isn’t just what these accounts are, but how they might fit into both personal planning and practice benefits strategies.

What Are Trump Accounts?

Trump Accounts are a new type of tax-advantaged savings and investment account established for U.S. children. While they share some features with custodial accounts, they are designed to transition into an IRA-like structure once the child reaches adulthood.

Key features include:

• Federal seed contribution: Children born between January 1, 2025, and December 31, 2028, who are U.S. citizens with Social Security numbers, are eligible for a one-time $1,000 federal contribution when an account is established.
• Who can open and fund the account: Parents or guardians can establish a Trump Account when filing their tax return by completing IRS Form 4547 and submitting it with their return. Once open, parents, relatives, employers, and others can make contributions.
• Annual contribution limits: Total contributions are generally capped at $5,000 per year per child, though certain public or charitable contributions may be treated differently.
• Investment structure: Funds must be invested in eligible mutual funds or ETFs, typically those tracking broad U.S. equity indexes.
• Access and use at age 18: When the beneficiary turns 18, the account converts into an IRA-like structure. From there, funds may be used for retirement, education, a first home purchase, or other qualified purposes, subject to applicable rules.

Why This Matters for Dental Families

Many dental professionals already use tools like 529 plans for education savings. Trump Accounts are different. They are not limited to education and are designed to support a broader range of long-term goals.

That flexibility can be appealing, particularly when combined with the early federal contribution and decades of potential investment growth. At the same time, these accounts introduce another layer of complexity into family financial planning.

For dental households, Trump Accounts should be evaluated alongside:

• Existing education savings plans
• Retirement strategies
• Trust or estate planning structures
• Cash flow demands tied to practice ownership

They are not an automatic replacement for other tools, but they may complement them when used thoughtfully.

A New Opportunity for Dental Practices as Employers

From a practice-owner perspective, Trump Accounts also introduce a new benefits consideration. Employers may contribute to these accounts for employees with eligible children, offering a family-focused benefit that supports long-term financial security without tying compensation solely to wages.

For dental practices competing for hygienists, assistants, and administrative staff in a tight labor market, this opens a new conversation about benefits that resonate with younger employees.

Potential advantages for practices include:

• Offering a family-focused benefit that goes beyond traditional retirement plans
• Differentiating the practice in recruiting, especially for early-career team members
• Providing a benefit that supports long-term financial wellness without increasing immediate payroll costs in the same way wages do

Unlike health insurance or retirement plans, contributions to a child’s savings account can feel highly personal and values-driven, something many employees notice and remember.

That said, employer participation comes with administrative, tax, and compliance considerations that not every practice will want or need to offer. The key is understanding how it fits with your existing compensation and benefits philosophy.

Planning Questions for Dentists and Practice Owners

Whether you’re thinking about Trump Accounts for your own family, your employees, or both, these questions are worth exploring:

• How does this account compare to a 529 plan or other long-term savings vehicles?
• Would offering contributions as an employer create meaningful value for your team?
• How would contributions be structured, tracked, and communicated?
• How does this fit with practice cash flow, growth plans, and existing benefits?

Because contribution rules and tax treatment intersect with other planning areas, this is not a decision to make in isolation.

Bringing It All Together

Trump Accounts represent a meaningful shift in how long-term savings for children can be structured, and for dental practices, they introduce a potential new way to support employees at key life moments. Handled carefully, they can be a powerful planning tool. Handled casually, they can add unnecessary complexity.

If you’d like help evaluating how Trump Accounts fit into your personal financial plan or whether offering them as a benefit makes sense for your practice, we’re here to help. We specialize in working with dental professionals and dental practices and can help you assess both the opportunity and the implications before moving forward.