Trump Accounts, also called 530A accounts, are a new type of tax-advantaged investment account for children who are under 18 for the entire calendar year the account is opened. If the child was born between January 1st, 2025, and December 31st, 2028, the US Treasury will deposit a $1,000 “seed” into the account. Designed to give children a financial head start, the account is owned by the child and managed by the parents or guardians through the US Government and acts like a custodial IRA for minors until
age 18.
To open the account for your child, you will first complete IRS Form 4547 from the official site, TrumpAccounts.gov. After the form is filled out, you will receive an activation email with instructions to complete the process. Annual contributions are limited to $5,000 coming from family, friends, charities, and employers (employers have an annual limit of $2,500).
Contributions to Trump Accounts are generally after tax and are not tax-deductible. Upon the child turning 18, the account transitions to a traditional IRA framework where withdrawals are taxed as ordinary income and subject to penalty if withdrawn before age 59½ unless for qualified expenses like education or a first home purchase. The accounts will go live on July 4th, 2026. Go to TrumpAccounts.gov to learn more or contact your Great Plains wealth advisor for further information.
