According to the latest data, Trump Accounts (tax-advantaged 530A child savings accounts) don’t officially exist – yet. That said, the setup process has begun, so read on if you have young children.
- Accounts can be activated and available to accept contributions in early July 2026.
- Parents can initiate the process now by filing IRS Form 4547,
- The Treasury Department will send activation instructions to those who pre-registered in May 2026.
Based on information currently available:
- U.S. children under 18 with a Social Security number are eligible.
- Children born between 2025 and 2028 get a $1,000 government contribution when their account is activated.
- Total contributions (family/employer) are generally capped at $5,000 per child, per year.
What Are the Key Benefits of these Accounts?
- They can provide significant wealth for children if the funding begins at birth. Even modest contributions could grow significantly.
- Earnings may grow tax-deferred or tax-free if used for approved purposes (e.g., education, home purchase).
- If the proposed seed funding ($1,000 upon activation) is approved, it is a solid way for even lower-income families to begin saving.
As you already know, as an estate planning attorney, I’m all about planning ahead. So, no surprise that these accounts really resonate with me. And if the $1,000 seed funding is approved, they become even more attractive. Just think: from the moment your child is born, you can take action to help and protect their future. Even if your kids are no longer babies, it’s not too late to take advantage of the accounts, so put it on your to-do list to look into these today!
Best regards,