Trump Accounts introduce new tax-advantaged investment options for minors

Trump Accounts, also known as 530A accounts, are tax-advantaged investment accounts for minors established under the One Big Beautiful Bill Act of 2025. Available as of July 4, 2026, these accounts function similarly to Traditional IRAs, with parents or guardians acting as custodians until the child turns 18, at which point ownership transfers and the account converts to a Traditional IRA.

U.S. citizens born between January 1, 2025, and December 31, 2028, are eligible for a one-time, tax-free $1,000 federal grant from the U.S. Treasury. For children outside this birth window, the Michael and Susan Dell Foundation has pledged $250 contributions for those in ZIP codes with median household incomes below $150,000.

Annual contributions from family, friends, and employers are capped at $5,000 per child. Employers may contribute up to $2,500 per year per dependent tax-free. A new regulatory proposal also suggests allowing parents to transfer existing retirement assets into these accounts, potentially offering a discounted Roth-style conversion with savings of up to $2,500 per child. To ensure low costs, annual fees are capped at 0.1%, and funds must be invested in broad U.S. equity index funds, such as the State Street SPDR S&P 500.