On July 4, 2026, Trump accounts became available as a new tax-deferred savings option alongside 529 plans and IRAs. Your Edward Jones financial advisor can walk you through the numbers. Our strategy report and fact sheet break it all down.

Trump accounts explained and the questions worth asking

From eligibility to long-term investment strategy, take a deeper dive into how 530A Trump accounts work.

What is a 530A Trump account?

A 530A account — commonly called a Trump account — is a new tax-deferred investment account for U.S. children under 18. Created by the One Big Beautiful Bill Act of 2025, these accounts function similarly to a traditional IRA but with unique rules until the year the child turns 18, including:

• A lower annual contribution limit
• Contributions are generally made with after-tax dollars
• Investments are limited to low-cost U.S. equity index funds
• Distributions generally aren't allowed

Starting the year the child turns 18, the account largely operates like a traditional IRA.

Who is eligible?

A Trump account can be established for any U.S. child with a valid Social Security number before the year they turn 18. An authorized individual — a parent, legal guardian, adult sibling or grandparent — establishes the account on the child's behalf. The child is the legal owner of the assets throughout.

When are these accounts available?

Trump accounts became available on July 4, 2026, through the U.S. Treasury and Treasury banking partners. IRS Form 4547 can be filed now or at trumpaccounts.gov to start the process.

Is there really a $1,000 government contribution and how does it work?

Yes. U.S. citizen children born between Jan. 1, 2025, and Dec. 31, 2028, are eligible for a one-time $1,000 federal seed contribution to their Trump account. That amount doesn't count toward the $5,000 annual contribution limit (2026 and 2027) available to parents, grandparents, employers and others. It's worth noting that this election must be made explicitly on IRS Form 4547 — it isn't automatic.

How does a Trump account compare to a 529?

A 529 plan is generally the stronger choice for education savings. It offers higher contribution limits, broader investment choice and tax-free distributions when used for qualified education expenses. Depending on your state, you may also qualify for a state income tax deduction. And, you retain ownership of the assets which is generally more favorable for financial aid eligibility.

What makes Trump accounts different from Roth IRAs?

A Roth IRA is generally more favorable for retirement savings. It offers broader investment choice, greater distribution flexibility and the potential for tax-free growth. However, the child must have taxable compensation to contribute to one. If they don't, a Trump account offers a tax-advantaged alternative to help them jumpstart their retirement savings. You can also contribute to both a Roth account and Trump account if you have the funds available (and the child has taxable compensation).

What’s the long-term strategy?

The most compelling opportunity for a Trump account may start the year the child turns 18. At that point, the account largely functions as a traditional IRA, including the ability to do a Roth conversion. Converting assets when they're younger and their income is lower can help reduce their lifetime taxes, and it allows a longer time to benefit from tax-free growth. You should beware of kiddie tax, though, which can subject the conversion to the parents' tax rate. Your Edward Jones financial advisor can walk you through how this strategy plays out in practice.

How do I know if it's right for my family?

Trump accounts aren't a fit for every situation. Suitability depends on your goals, priorities and overall financial picture. That's not a question this resource can answer — but it is exactly the kind of conversation your Edward Jones financial advisor is built for.

Here’s how to open a Trump account

Trump accounts became available July 4, 2026. Opening one is straightforward:

Step 1: File IRS Form 4547 with your tax return or anytime at trumpaccounts.gov. Eligible families must explicitly elect to receive the $1,000 federal contribution on this form.

Step 2: A Treasury-designated trustee contacts you to complete account setup.