What Is a Trump Account? A Parent’s Guide to the New 530A Savings Account

Who is eligible?

As of July 1, 2025, any U.S. citizen under the age of 18 with a valid Social Security Number is eligible. Only one account is allowed per child.

What can the account be used for?

• These funds cannot be accessed until the child turns 18.^* 
• Once the child is 18, the account has similar requirements as a traditional IRA. Funds can be used for education, homeownership, or to start a small business, with limitations.
• If the funds are used before the beneficiary turns 59 ½, the earnings will be taxed.
• Unless the withdrawn funds are used for an allowable expense, such as education, an additional 10% penalty tax may also apply to the earnings.

^*At age 17, a rollover from a Trump Account to an ABLE account is possible, for certain children who qualify.

Who is eligible for the $1,000 seed contribution?

Children born between January 1, 2025 and December 31, 2028 are eligible to receive a one-time $1,000 initial, or “seed” contribution from the federal government.

Who can contribute to a Trump Account?

There is an annual contribution limit of $5,000 per year per child. Employers may contribute up to $2,500 per employee, and employer contributions count toward the annual limit. 

In addition to federal contributions; states, non-profit organizations, and charities may also contribute. These contributions are not subjected to a dollar limit, but they must support groups of 5,000 children or more.

How will the funds be invested?

Funds will be invested in low-fee U.S. stock index funds to encourage long-term growth.

Are there any other benefits?

Until the child turns 18, assets in a Trump Account are excluded from means-tested eligibility calculations for most benefits programs. Starting at age 18, the assets are treated the same way as assets in a traditional IRA.

Can a Trump Account be transferred or rolled to another account? 

Yes. A Trump Account can be transferred to another financial platform that manages traditional IRA accounts. It can also be converted to a Roth IRA, though taxes may apply when converting from a Traditional IRA to a Roth IRA.

Can a beneficiary have a Trump Account and a 529 Account?

Yes. A Trump Account and a 529 account are separate accounts designed to help with major savings goals. A family can open and save in a 529 account for a child who also has a Trump Account. 529 account withdrawals are tax-free when used for qualified education expenses. A child may also benefit from other wealth-building accounts, such as a child savings account.

Each account has its own benefits, and there are many options to save for college.

Key Take-Aways

• Families can have a Trump Account, a 529 Account, or a child savings account- like Maine’s Alfond Grant. Each has different eligibility criteria and is managed separately, so families must apply for each account or program separately. 
• Your child may be eligible for a $1,000 seed contribution in a Trump Account.  You can open the account using tax form 4547 or the Trump Account mobile app.
• A Trump Account is structured like a traditional IRA and may help your child plan for long-term savings, including saving for retirement.

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