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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

November/December 2026

Turn a Trump Account Into a Tax-Free Nest Egg

building blocks with bar chart graph

Here's a tax-advantaged strategy using a child's Trump retirement account that you may want to discuss with your tax and financial professionals.


The Concept
Your contributions to the child's account aren't tax-deductible. However, the amounts contributed—by you or others— grow tax-deferred, offering a substantial investment advantage that supports your family's long-term goals. Maximize your contributions each year within the allowed limits, which are $5,000 for 2026 and 2027.


While the child owns the account, you manage it until they turn 18. After that, contributions and earnings made before age 18 are treated as traditional IRA contributions, subject to a 10% early withdrawal penalty, though these balances can also be rolled over into a Roth IRA.


The Twist
The twist is a series of well-planned Roth conversions. For many young adults, age 18 is an especially good time to begin, since converting amounts that—combined with earnings—stay within the 0% tax bracket means no federal income tax is owed. Similar partial conversions can continue taxfree through the college years. After that, the child can convert the remaining balance and pay tax in that year, or continue partial rollovers until the full balance is converted, potentially paying less tax overall.


Benefits
Converting during early, low-income years secures decades of tax-free growth—a lasting tax advantage. Roth contributions, including those from a Trump account established in your child's early years, may be withdrawn tax- and penalty-free before retirement, and your child can later use them to buy a home or start a business.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Solutions, LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Marketing Solutions, LLC, an unrelated third party. Articles are not written or produced by the named representative.

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