Trump Accounts (also known as 530A Accounts) are government seeded investment accounts created by the 2025 One Big Beautiful Bill Act to help children build long-term wealth. The account officially launches July 4th, 2026; however, the app is accessible now to download and create an account.
Who is eligible?
Any child born between Jan 1, 2025 & Dec 31, 2028 will receive $1,000 credited to their account. U.S. citizenship and a valid social security number are required. The child’s parent/guardian will be the custodial owner of the account until the child turns 18.
Contributions
No contributions are necessary, but you can contribute up to $5,000 per year. Contributions are made after tax, and there are no tax deductions on contributions.
Investment Options
Funds will be invested in diversified U.S., low-cost mutual funds and/or index funds.
Taxation & Withdrawals
Investments grow tax deferred. Withdrawals are not permitted before the child turns 18. After the child turns 18 access to funds may become available for Qualified use. Funds will continue growing tax deferred and are treated similarly to a Traditional IRA. Distributions will be taxed differently depending on the use of funds.
Qualified uses after age 18 (generally taxed at long term capital gains rates)
- Higher Education
- Job training
- First time home purchase
- Small business set up costs
Non-Qualified uses: Other uses will generally be taxed at ordinary income rates in addition to a potential 10% early withdrawal penalty.
The program is very new, and the IRS is still issuing guidance on several operational details. So, it is advised to continue to educate yourself on any potential changes/details to the program. Additional information is available at https://www.irs.gov/trumpaccounts or https://www.trumpaccounts.gov/.
Brian Stone
Director
Disclosures:
This is provided for informational purposes only and should not be interpreted in any way as investment, tax, accounting, legal or regulatory advice. An investor must take into consideration his/her individual circumstances.
There is no guarantee investment strategies will be successful. Investing involves risks including possible loss of principal. There is always the risk that an investor may lose money. A long-term investment approach cannot guarantee a profit. All expressions of opinion are subject to change. This article is distributed for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services. Investors should talk to their wealth advisor prior to making any investment decision.
