Roth Conversion Hack for Trump Accounts

This is a hack for making Trump account withdrawals tax free in the future.

At age 18, Trump accounts convert to traditional IRAs, with all the associated rules.  Since contributions are made after tax, only earnings are taxed when withdrawing from a Trump account IRA.  

Here's the hack.

• If the child is still a dependent and not earning wages,  the standard deduction is up to $1350 (for 2026) of unearned income.  Thus, the child can convert up to $1350 of IRA earnings to a Roth account tax free.  Since contributions are prorated between contributions and earning, the child will also convert some untaxed original contribution.
• If child has earned income, the standard deduction is earned income + $450 unearned income, up to the single standard deduction of $16100 (for 2026).

If planned well, the entire Trump IRA can be converted to a Roth IRA with little or no tax.

My son is 14.  If I open a Trump account for him, we can contribute up to $5000/year to the account, up to age 17.  At that point, he may have $20,000 to convert to a Roth, provided the investments don't decline. 

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This is not financial, retirement savings, nor Roth Conversion advice. Please consult a professional advisor.

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