Trump Account program offers retirement savings for children

The Trump Account program, also known as a 530A or 530 IRA, is a new type of retirement investment account designed for children. U.S. citizens born between January 1, 2025, and December 31, 2028, are eligible for a one-time, $1,000 government-funded contribution to jump-start long-term savings.

These accounts offer tax-deferred growth, though contributions are non-deductible. Unlike traditional IRAs, no earned income is required for the child to participate. For 2026, the combined annual contribution limit for individuals and employers is $5,000 per child, excluding government and outside donor contributions. Funds generally cannot be withdrawn until the child reaches age 18, at which point the account converts into a traditional IRA.

In addition to the federal contribution, some children may receive funds from outside sources, such as a $250 contribution from the Dell Foundation. Management of these accounts is facilitated through an official online portal and apps utilizing BNY and Robinhood software. While the accounts serve as a valuable savings tool, financial experts note they are not a replacement for 529 education plans or comprehensive estate planning, such as wills and trusts.