530A accounts (commonly referred to as “Trump Accounts”) need to be addressed if you have children under 18. Many young families can benefit from an initial government contribution or private grants. Much like taking advantage of your employer’s match in your retirement plan, there is a little bit of a claiming process to go through, but it is well worth the free money!
Eligibility and starting contributions
- Families may open a Trump account for a child with a valid Social Security number who is under 18. As of late September, accounts for eligible children have been automatically opened.
- If the child was born in the U.S. between January 1, 2025, and December 31, 2028, the account is seeded with $1,000 from the government. Even if your child’s account was automatically opened, you must still elect to receive this contribution.
- If the child is not eligible for the $1,000, there may be other options for grants. You can check your eligibility using this calculator or through the Dell Foundation (not government websites). These other grants are largely based on your zip code and the age of your child.
Annual contributions
- Beginning July 4, 2026, families can contribute up to $5,000 per account per year.
- The initial $1,000 government contribution does not count toward that $5,000 annual limit in the first year.
Taxes and contribution flexibility
- Though touted as a sort of custodial IRA, contributions are not deductible
- There is a potential employer option: some employers may be able to contribute up to $2,500 per employee per year through a Section 125 cafeteria plan. Much like an
H.S.A., this $2,500 would count toward the family’s $5,000 limit and potentially be treated as pre-tax to the employee. Both of these numbers will be adjusted for inflation.
Account growth and turning 18
- The account grows tax-free while the child is under 18. At age 18, it becomes the child’s property.
- At this point, the child may want to convert to a Roth IRA, which would potentially have minimal tax consequences, but will require coordination with the kiddie tax if the child is under 24 and is a full-time student.
How to enroll in a Trump Account
- As of late September, accounts were automaticall opened for all eligible children.
- To claim the account, the responsible adult needs to follow instructions at TrumpAccount.com. Have legal names, dates of birth, and Social Security numbers ready.
- Legal guardians, parents, adult siblings, and grandparents can claim a Trump account for a child. That is the order of priority for authorized individuals. In other words, grandparents are only permitted to claim the account if the child doesn’t have a legal guardian, parent, or adult sibling. Full instructions on this topic are on the IRS website.
- After the account has been claimed, the person who completed activation becomes the responsible party to manage the account until the child turns 18.
Considerations before contributing
This program is not “one-size-fits-all.” Before deciding, it’s helpful to compare it to other options (like Roth IRAs, taxable investing, or other child-related strategies) based on your goals and timeline:
- Access timing: Funds aren’t available for distribution until the child reaches 18.
- Potential tax outcome at withdrawal: Earnings and any grants are taxed at ordinary income rates when withdrawn. Individual after-tax contributions are not subject to tax when withdrawn.
- Investment options: Currently, there’s less flexibility. The program routes contributions into an S&P 500-based ETF. Additional ETF choices expected over time. As of late September, there’s also the potential for donors to contribute individual stocks to the child’s account. Details on possible stock holdings are still pending.
Key takeaways
We encourage everyone with an eligible child to claim the account. Claiming it prevents someone else from fraudulently claiming the account.
If your children are eligible for the $1,000 contribution, other grants, or an employer contribution, we encourage you to engage with the account. It’s free money and that compounding interest growth starts early.
For children not eligible for any grants, whether to contribute after claiming the account is a bit more nuanced.
There might be some better options for the child depending on your goal for these funds. For example, if your priority is funding education for the child, a 529 plan might be a better fit for you since withdrawals from this account aren’t taxed if used on qualified education expenses. Trump accounts provide greater flexibility in that they can be used for education as well as a home purchase without penalty or used to jumpstart the child’s retirement portfolio. With this flexibility, you are giving up some tax savings as a withdrawal in any of these situations is still going to be part of the ordinary income tax equation. Because of the $5,000 annual limit, you may want to use both a 529 and a Trump account for education funding if you’re willing to be more flexible with the funds.
If you’re curious about whether or not this might fit in with your goals, be sure to ask us about your own situation. We’d love to help you utilize the best tools for best supporting your child!
This article was originally published in July 2026 and was updated in October 2026.