A new federal savings account program, known as a Trump Account (530A Account), was created to help families save for a child’s future. These accounts are designed to provide long-term savings that can be used when a child becomes an adult for education, homeownership, retirement, and other qualifying purposes.
What Is a Trump Account?
A Trump Account is a federally authorized investment account for children under age 18 who have a Social Security number. Funds in the account are invested and have the opportunity to grow over time.
The program includes a pilot initiative that provides a $1,000 government contribution for eligible children born between January 1, 2025, and December 31, 2028.
In addition to the initial government contribution, family members, employers, foundations, and others may contribute to an account, subject to annual contribution limits.
Who Is Eligible?
Children Born Between January 1, 2025 and December 31, 2028
Eligible children may qualify for:
- A Trump Account established in their name
- A $1,000 federal contribution
- Additional contributions from family members or approved organizations
Other Children Under Age 18
Children who were born before December 31, 2024, may also be eligible to have a Trump Account opened on their behalf, though they do not qualify for the $1,000 federal contribution. Companies, employers, and philanthropic organizations may choose to contribute to these accounts.
Generally, children must:
- Be under age 18
- Have a Social Security number
- Be a U.S. citizen or resident
How Do Families Enroll?
Enrollment is not automatic. A parent, legal guardian, grandparent, or certain other authorized adults must open the account on behalf of the child.
Families may enroll by:
- Completing IRS Form 4547 when filing taxes
- Using an online enrollment process through the Trump Accounts website
- Submitting a paper version of Form 4547
If an account is not opened, the child will not receive the program benefits.
When Can the Money Be Used?
Funds generally cannot be accessed until the child reaches age 18.
According to program materials, funds may be used for qualifying purposes such as:
- College, vocational school, or job training
- A first home purchase
- Starting a business or farm
- Work-related tools and supplies
- Certain family-related expenses
- Retirement savings
Withdrawals for non-qualified purposes may be subject to taxes and penalties. Families should review official program guidance and consult a qualified financial or tax advisor regarding their situation.
Important Considerations
Before enrolling, families should be aware that:
- Funds are intended as a long-term investment and generally cannot be accessed before age 18.
- Investment values may increase or decrease over time.
- Account earnings may be subject to tax rules when withdrawn.
- Only one account may be opened per child.
Need Help?
Neighborhood House is sharing information about Trump Accounts so families can learn about resources that may support their children’s future financial goals. We encourage families to review official program materials and determine whether the program is right for their situation.
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Disclaimer: This information is provided for educational purposes only and does not constitute financial, tax, or legal advice. Program rules and eligibility requirements may change. Please consult official government resources or a qualified professional for guidance specific to your situation.