The Roth Rocket: Thoughts on a Strategy to Maximize a Child's Roth IRA Balance at Age 25?

In the last few years, a couple of changes have made it possible to front-load a kid's Roth IRA to a historically unprecedented degree. I've been playing around with how far someone could plausibly push this, and I'd be curious to get some thoughts from the r/personalfinance hive mind on this.

Since I'm a space nerd and I like alliteration, I'm dubbing this strategy the Roth Rocket, and I'm leaning hard on that metaphor. I'll also share a plausible maximum-amount example for a family with the means to put $500-$600 per month ($6K per year) towards this strategy.

Anyway, here it is: The Roth Rocket Strategy

Ignition and Lift-Off: When your kid is born, open a Trump Account, a 529 account with that kid as the beneficiary, and a Custodial Roth IRA. If your kid is born between 2025-2028, you get a thousand bucks in the Trump Account from the federal government and possibly more depending on where you live.

Example: $1,000 from the federal government and an initial investment of $5K.

Booster Stage: From ages 0 to 18, the family puts as much money as they practically and legally can into these three accounts. Maximum Trump Account contributions are $5K per year from anyone, including parents, grandparents, aunts/uncles, parent employers, and anyone else except charitable or federal contributions; for parents’ employers, these donations are tax-deductible. Direct contributions to the kid's custodial Roth aren't possible until the kid starts making taxable income; when this happens, give your kid 50% matching contributions to their custodial Roth IRA. For the 529, the goal is to have an excess of $35K by age 18.

Example: I'll assume $6K-7.2K per year of contributions for this kid. $5K Trump account annual donations, $1K 529 account contributions, and $1,200 in annual taxable income for the kid from age 12-18. All three accounts get a 6.5% annualized rate of return.

Separation: At age 18, the Trump Account becomes a traditional IRA for the kid, and the custodial account can move over to your kid's control as well.

Example: At age 18, this results in the following account balances:

Ex-Trump / Now Traditional IRA Account: $180.6K

529 Account Balance: $35.5K

Roth IRA: $10.2K

Second Stage: From ages 18-22, the focus is rollovers and conversions. All direct contributions stop. The kid has a low income and pays little in taxes, so now's the time to do Roth conversions. The kid should also do summer jobs/paid internships if in college to allow unused 529 account rollovers. Converting the formerly-Trump Account to Roth may not be wise until the kid turns 24 or the kid is no longer a full-time student, or else the kid gets taxed at the parents' rate.

Example: Each year, the kid earns the Roth IRA maximum contribution ($7.5K) limit in income.

The kid converts $50K each year from the Traditional/former Trump Account IRA into Roth. I'll assume an effective 6% tax on this (I could be off on this; I'm not a tax expert)

You the parent roll the Roth IRA contribution maximum of $7,500 into the kid's Roth IRA. up to the limit of

The kid focuses savings from income towards following the Prime Directive: Emergency fund, 401K, etc.

Example Endstate: At age 22, the kid has $282.6K in a Roth IRA. If the kid makes no further contributions, a 6.5% return grows this sum to $4.24M when the kid reaches age 65.

Additional nuance: I've seen some articles talk about doing a Trump Account conversion using something called a 'reverse rollover' once the kid starts a job with a 401K. I don't understand it well enough to include it in this strategy, but as I understand it, it involves rolling over the Trump Account's growth into the 401K and then converting the after-tax Trump Account contributions to the Roth tax-free.

Disclaimer: The example I shared isn't possible might not be possible in practice. The kiddie tax, contributing family member finances, lower rates of return, market volatility, and changing account/tax rules over 22 years may delay or diminish the result.

Additional Disclaimer: Even if it is possible, should you? Dumping a whole lot of money into a kid's direct control at 18 can be a recipe for disaster if the kid is irresponsible or self-destructive. Still, we routinely ask 18-year-olds to take out life-stunting amounts of debt for college at 18; a Roth Rocket strategy seems much more responsible to me.

Unless I'm way off base here, this seems a potent strategy for families with the means to fund it. What do you think? Are there any other boosters one might add to this strategy?

Apologies if there's already a term/established strategy for what I'm describing; I haven't heard of one yet.

[edit: found a spreadsheet error that overestimated the value at retirement by about 20%. Also corrected the bit on only parent employer donations to Trump Accounts being tax-deductible]