530A Accounts— “Trump Accounts”

The recent passage of the One Big Beautiful Bill Act (OBBA) introduced a new way for families to begin saving and investing in their children early in life. These new savings vehicles—officially known as 530A accounts or referred to as “Trump Accounts”—are designed to help families start building long-term financial foundations for children from birth.

By encouraging early investing and long-term growth, these accounts offer families an additional planning tool to support a child’s future as they transition into adulthood.

How Does a “Trump” Account Work?

Opening a 530A account is a relatively straightforward process. To be eligible, the child must:

Have a Social Security number
Be a U.S. citizen
Be under the age of 18 when the account is established

To formally open the account, a parent or legal guardian files Form 4547 with their tax return. The parent or guardian serves as the custodian of the account until the child reaches age 18, at which point control of the account transfers to the child.

Funds contributed to a Trump account are invested in U.S.-based companies, and custodians are able to monitor the account’s progress over time.

Additionally, for children born between January 1, 2025 and December 31, 2028, eligible accounts receive a $1,000 initial government contribution, providing an immediate base for long-term growth.