What is a Trump Account?
A Trump Account (officially named a 530A Account) is a retirement investment vehicle for children under 18. The idea is to start children on saving for retirement essentially from birth. Use the investment calculator below to see how the time and power of interest can help your child’s funds grow.
The accounts were created as a part of the One Big Beautiful Bill Act. Parents or guardians can open and contribute to an account in a child’s name, and the account becomes the property of the child once they reach 18. The money contributed to the account is invested into U.S. equity index funds that track the stock market.
To be eligible for a Trump account, children must be under 18 on December 31st of the year the account is opened and have a Social Security number.
Trump Account Incentives
The Trump Account Pilot Program offers eligible accounts a one-time $1,000 credit from the Department of the Treasury. To be eligible for this credit, children must…
- Be born between January 1st, 2025 and December 31st, 2028
- Be a United States citizen
- Have a Social Security number
The Michael & Susan Dell Foundation also pledged $6.25 billion in gifts for qualifying children, equalling $250 each. To qualify, kids must be under 10 years old and live in zip codes with median incomes below $150,000. Note: children can only qualify for either the $1,000 pilot program money or the $250 gift, not both.
Setting Up and Managing a Trump Account
Parents and guardians can use Form 4547 to set up a Trump Account for their dependents. After the accounts go live on July 4th, 2026, you can also set up an account at TrumpAccounts.gov.
Caregivers, parents, guardians, and family members can contribute up to $5,000 per year into a child’s Trump Account until the year that the child turns 18. Contributions are made with after-tax money. Some employers are offering matches for Trump Accounts, similar to those available for a 401(k). Through matches, employers can contribute up to $2,500 of the $5,000 total. If the child qualifies for the Trump Account Pilot Program, the $1,000 credit does not count toward the $5,000 limit for the year it’s received.
Withdrawals cannot be made before the child turns 18. Once that happens, the child becomes the owner of the account, and it transitions to the rules of a traditional IRA. Any withdrawals without a qualifying exception before the owner is 59 ½ will incur a 10% penalty.
Contributions to a Trump Account do not impact contributions to other IRA accounts. Teenagers with another IRA (say, a Roth IRA they contribute to with money from work) can still contribute the max to both accounts.
Other Savings Options for Kids
Trump Accounts are set up as a savings vehicle for retirement. If you’re looking to help your child save for more immediate costs, like education or housing, there are other options that may be a better fit.
- A 529 Plan is a savings account specifically designed to save for a child’s education. If the child opts not to use the money for education expenses, it can be rolled into a Roth IRA.
- UTMA (Uniform Transfer to Minors Act) and UGMA (Uniform Gift of Minors Act) accounts are taxable investment accounts that an adult controls for a child until they turn 18. The money can be used for anything. Contributions are irrevocable, meaning they cannot be changed once set up, and the account is considered the child’s property once they come of age, which may impact their eligibility for certain financial aid.
- CDs and Share certificates can be opened for your child through a custodial account. Money in a CD or share certificate, and the interest earned from it, can be used for anything, but cannot be withdrawn until the maturity date without fees.
The best time to start thinking about your child’s future is while they are young, to take full advantage of the power of interest. A Trump Account adds a new option to a parent or guardian’s arsenal to start saving toward a child’s future retirement.
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