WHAT THEY ARE AND WHO QUALIFIES

 

By:  Aaron Anderson, CFP®, CFA, Managing Partner

June 11. 2026

A Trump Account – officially known as a 530A account – is a special investment account established for a child under age 18. The accounts are structured as a new type of tax-favored individual retirement account for minors and are invested in low-cost U.S. stock market index funds.

The program was created to encourage long-term saving and investing from an early age, helping children build wealth over time through compound growth and regular contributions. Unlike a 529 account for college savings or an UTMA account, we’re unable to open the accounts for you. But, we can help you understand them and guide you through the process. This page will be updated as more information comes out.

 

How Do Trump Accounts Work?

Trump Accounts launch on July 4, 2026, but there are some things you can do to get started now. Once a Trump Account is opened, contributions can be made on behalf of the child by parents, guardians, relatives, friends, employers, charitable organizations, and certain government entities.

The funds are invested in approved low-cost stock market index investments and grow on a tax-deferred basis. Generally, the money remains invested until the child reaches adulthood and beyond, allowing earnings to compound over many years.

Parents or guardians manage the account while the child is a minor. When the child reaches adulthood, the account becomes available to the beneficiary subject to the program's withdrawal and tax rules.

 

What Can Trump Accounts Be Used For?

Trump Accounts are designed to help young adults build financial resources for important life milestones. Potential uses include long-term retirement savings, higher education expenses, purchasing a first home, and other qualified financial goals permitted under applicable rules. Funds are not available while the child is a minor and then the account follows IRA rules once they reach the age of majority. Because the funds are invested for many years, the accounts are intended as a long-term wealth-building tool rather than a short-term savings vehicle.

 

Contribution Limits

Trump Accounts have annual contribution limits that apply to most private contributions. Up to $5,000 may be contributed annually from eligible private sources; contribution limits may be adjusted for inflation in future years. Contributions can come from multiple contributors, including family members and employers. The one-time government seed contribution does not count against the annual contribution limit. Certain charitable contributions may also receive special treatment under program rules.

 

Who Can Get a Trump Account?

Generally, a child may be eligible for a Trump Account if the child is under age 18 and has a valid Social Security number. An eligible adult establishes the account on the child's behalf. This is usually the child’s parent. Grandparents and others cannot establish the account unless the child is their dependent and certain other criteria are met.

 

How to Get the $1,000 Government Contribution

The federal government provides a one-time $1,000 seed contribution through the Trump Accounts Contribution Pilot Program. Not all children qualify for this. To qualify for the $1,000 contribution, a child must be born between January 1, 2025, and December 31, 2028, be a United States citizen, have a valid Social Security number, and have a Trump Account established through the required enrollment process.

 

How to Open a Trump Account

Opening a Trump Account generally involves several steps. They only recently have laid them out and do not go into a lot of detail on the mechanics. To get more details and get started, you should go to TrumpAccounts.gov.

1. Fill out Form 4547

On their website, click the “Fill out Form 4547” button. On the next page, click the blue “Sign in or create account” button to sign into or create your IRS Account. To complete Form 4547, you’ll need parent/guardian information and child’s information including their Social Security number and date of birth. You’ll also select if they qualify for the $1000 pilot program contribution mentioned above.

2. Download the app and create an account

On their website front page, click the “Download the app” button and install the app for your smartphone. They mention creating an account but are not clear if you use your IRS account from the previous step or create a new one.

3. Wait

The website says after doing the first two steps, you wait for an invite that should arrive over the next few weeks.

4. Begin Funding the Account

Once established and the July 4^th launch date has passed, the account can receive eligible contributions from family members, employers, and other approved sources, subject to annual limits and program rules.

 

Are There Other Accounts for Children?

Yes, you still have the option to invest in 529 accounts for education savings. These accounts allow investments to grow tax-deferred and withdrawals are tax-free if used for qualifying educational expenses. There are also UTMA (Uniform Transfer to Minors Act) accounts that allow you to save for a child. They have no special tax treatment but also do not have the restrictions on contributions and withdrawals that the Trump Account has. If you would like to discuss these options further, please feel free to reach out.

 

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The opinions expressed in this article are those of the author and may not reflect the views of LPL Financial or its affiliates.  The strategies proposed may not yield the expected results.  This material is not intended as financial advice for any individual;  You should contact your personal financial advisor before acting on anything in this article.