05/12/2026
FAQs on New 530A Accounts (Trump Accounts)
Trump Accounts are a new type of savings account created under the One Big Beautiful Bill Act
(OBBBA) in July. They’re designed to give kids a financial head start and enhance their long-term
financial security. In some cases, the government may even contribute to the account, and
the money can grow with tax advantages over time.
If you’re planning for a child’s future, it’s worth understanding how these accounts work, who can
open one, and how to get started. Getting familiar with the basics now can help you take full
advantage once everything is up and running.
Below is a simple overview of what we know so far, with more details expected as additional
guidance comes out.
What is a Trump account?
This is a new type of savings account created just for kids under 18 who have a valid Social
Security number. It works a bit like a retirement account (an IRA), which means the money you
put in can grow over time without being taxed right away. The difference is funds for the account
can come from multiple sources.
Who can open a Trump account?
Only authorized individuals can open the account, in this order: legal guardians, parents, adult
siblings, and grandparents.
How to open a Trump account?
An authorized individual can submit an election to the IRS on the child’s behalf. This can be
done in one of two ways: (1) by filing IRS Form 4547 with the individual’s 2025 federal income
tax return, or (2) by using the TrumpAccounts.gov online portal. (The portal is expected to be
fully operational by mid-2026.)
Who is eligible to claim the $1,000 federal government free seed money?
Any child born between 2025 and 2028 who open a Trump Account are eligible for the unique
$1,000 federal seed contribution, provided at no cost to the child or their parent/guardian.
Who can contribute to the Trump account and is there a limit?
Other than the federal seed money, parents, guardians, grandparents, family members, and
friends can make contributions. Employers can also contribute up to $2,500 each year for an
employee’s child. Tax-exempt organizations, like those recognized under section 501(c)(3), can
contribute as well. The maximum annual contribution for each account is $5,000.
How should the Trump account money be invested?
Funds must be invested in eligible mutual funds or ETFs that track U.S. companies, like S&P
500 funds, with fees under 0.1%. Additional criteria may be established by the Treasury
Department.
When and how can you use the money in the Trump account?
Distributions are generally prohibited before the child turns 18. Once the child reaches age 18,
they assume full ownership of the account, and any distributions are then subject to the standard
rules that apply to traditional IRAs, including potential taxes or early‑withdrawal penalties if taken
before the age of 59 ½, unless an exception applies.
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