Trump Accounts (530A Accounts)

What is a Trump Account?

A Trump Account is a new tax-advantaged investment account created for a child (US citizens under age 18), that is launching on July 5, 2026. The account is fully in your child’s name, and you (parent/guardian) are the sole custodian until they turn 18.

You can view the account website here.

How do you open one?

You open the account by making an election on the new IRS Form 4547 or directly through the website: https://form.trumpaccounts.gov/ 

Once the election is processed, the Treasury Department or its agent will send instructions to complete an authentication process and activate the account at a financial institution.

Who can make the election?

  • If you’re only opening the Trump Account (no pilot request), the “authorized individual” is generally: legal guardian, parent, adult sibling, or grandparent (in that order).
  • If you’re requesting the $1,000 pilot contribution too, the authorized individual is generally someone who expects the child to be their qualifying child for that tax year.

Who can get one?

A child is generally eligible if:

  • They are a U.S citizen under age 18 at the end of the year the election is made, and
  • They have a valid Social Security number issued before the election date.

The $1,000 pilot contribution for children born 2025-2028

If the child is:

  • Born January 1, 2025 through December 31, 2028,
  • A U.S. citizen, and
  • Otherwise meets the pilot requirements,

then the U.S. Treasury will make a one-time $1,000 contribution to the child’s Trump Account. 

How much can be contributed each year?

During the child’s “growth period” (while they’re a minor under the program rules), there are multiple contribution sources, including:

  • The $1,000 pilot (if eligible),
  • Certain government/charity contributions for eligible groups,
  • Employer contributions (special rules), and
  • Family/others contributions.

The aggregate annual contribution limit of all sources (excluding pilot contribution) is $5,000, with an employer contribution cap of $2,500 that counts toward that $5,000. (Limits are indexed for inflation starting after 2027.)

Individuals do not get an IRA deduction for contributions to a Trump Account during the growth period.  

How is it invested?

While the child is in the growth period, your child’s funds will automatically be invested in American companies. The app lets you see exactly what funds/stocks they own and how they’re performing. 

Investments are restricted to certain low-cost index mutual funds/ETFs focused primarily on U.S. companies, with additional limitations (including a strict fee cap concept in the IRS guidance).

When can the child use the money?

Generally, money can’t be withdrawn before January 1 of the year the child turns 18, except for limited situations (like certain rollovers/transfers, excess contributions, or death).

After that point, the account is generally treated like a traditional IRA, meaning:

  • Your child can retain the account and allow the funds invested to grow tax-deferred,
  • Withdrawals are typically taxable as ordinary income, and
  • Withdrawals before age 59½ may be subject to the 10% early-withdrawal penalty, unless an exception applies (the IRS specifically references common IRA exceptions like higher education and first-home purchase).

*Note on taxes: If family or friends contribute during the growth period, those dollars can create “basis,” which means part of withdrawals later may be tax-free (return of basis). By contrast, the pilot $1,000 and most employer/charity contributions don’t create basis, so they’re generally taxable when withdrawn along with earnings of the account. The IRS applies this pro-rata to each withdrawal.

Trump Account Strategies to Consider

  • Employers may choose to offer employees a salary reduction program under a “cafeteria plan” so that employees can make pre-tax contributions via payroll.
    • Because personal tax deductions aren’t available for Trump Account contributions, payroll pre-tax contributions can be the most tax-efficient way to fund the account (if your employer offers it).
  • Corporations can contribute up to $2,500 to Trump Accounts on behalf of their employees’ children and are tax-deductible.
  • If your child legitimately works in your family business, consider paying them reasonable W-2 wages and have them contribute to their own Trump Account (subject to annual limits). The business benefit is that the wages are deductible as a business expense (when properly structured).  Consult with your tax advisor.
  • Once the child is eligible to access/roll the account, consider converting the taxable portion to a Roth IRA gradually in early-adulthood years when their income is low.
    • Target conversions so the child stays in the 0% (or lowest) federal tax range—often roughly up to their available standard deduction/low bracket space—so more of the account can potentially grow as Roth (tax-free) with minimal tax cost.
  • Identify additional opportunities to enhance contributions for your child’s account.
    • Michael and Susan Dell pledged $6.25 billion Tuesday to provide 25 million American children 10. Learn more here: https://www.onedell.com/investamerica/
    • As of January 2026, Visa announced it is creating a platform to allow cardholders to directly deposit credit card cash-back rewards into Trump Accounts.

Next steps

Our job is to bring clarity to the noise, coordinate your full financial picture, and help you make confident decisions for your family.  Please reach out if we can help you decide whether a Trump Account fits your plan and ensure it is coordinated alongside all of your goals for you and your family.

Sources

Important disclosures
This summary is for educational purposes only and does not constitute tax or legal advice. Rules may change as additional IRS guidance is issued. Investment returns are not guaranteed; any projections shown are illustrative and based on assumptions that may not hold in the future. We recommend coordinating any Trump Account decisions with your tax professional.