Washington, D.C. (June 26, 2026) – The American Institute of CPAs (AICPA) is encouraging families to educate themselves about new “Trump Accounts,” officially known as Section 530A accounts, so they can make informed investment choices for their children’s future. July 4 marks the official launch date, when the accounts become fully active investment accounts – allowing families to begin contributing and eligible children to receive a $1,000 federal deposit.
Trump Accounts are federally authorized investment accounts for children, designed to help families build long-term wealth. Unlike a traditional savings account, funds are invested in low-cost stock market index funds, allowing for potential long-term growth.
“Education should always come before contribution,” said Cary Sinnett, Director of Personal Financial Planning at the AICPA. “These accounts, like many investment vehicles, are complex, so understanding how they work is essential in order to best use them and decide whether they should act as sole investments or be combined with other helpful savings plans like traditional savings accounts or 529 accounts.”
How to Open and Fund a Trump Account
Open the account early
Parents or guardians can start the process to open an account by visiting TrumpAccounts.gov before July 4, 2026, so they are ready to receive contributions and any eligible government deposit. First, they will need to fill out Form 4547 to make the election to set up the account. Then, an activation email will be sent to officially set up the account. Contributors will need identification for themselves and the child, including Social Security numbers. There can be one account for each eligible child.
Account control
Parents or legal guardians open and manage the account, maintaining control until the child turns 18.
Launch date
Contributions and government deposits begin on July 4, 2026. The $1,000 government deposit is available for children born between Jan. 1, 2025, and Dec. 31, 2028, with a valid Social Security number.
Contribution limits
A total of $5,000 can be contributed from family, friends, and employers. Employers may contribute up to $2,500 per year (counts toward the $5,000 limit) and not treated as taxable income. Charities and state/local governments may contribute without counting toward the annual cap.
Rules of Withdrawal
The funds in a Trump Account are generally intended for a child’s future goals such as higher education, buying a first home or starting a business and do not allow withdrawals before age 18 in most cases. The funds grow tax-deferred and beginning in the year the child turns 18, the account begins to function similarly to a traditional IRA. Withdrawals may be subject to tax and penalties, depending on how the funds are used.
How Trump Accounts Compare to 529 Plans
Trump Accounts have a broader use for future goals while a 529 Plan is designed to be used for education expenses. Trump Account funds grow tax-deferred and withdrawals will be taxed while a 529 Plan’s grow tax-free and withdrawals are tax-free for qualified education costs.
Prepare for Potential Taxes
Converting the funds in a Trump Account into a Roth IRA after the child turns 18 could trigger certain taxes. Once a child’s unearned income (which would include income from a Roth conversion) exceeds the current threshold of $2,700, taxes could apply based on the parents’ marginal income tax rate, rather than the child’s and may apply in certain cases for children between the ages of 18 and 24 if they are still a dependent on their parents’ tax return.
“It’s crucial for parents and guardians to determine the ultimate goal of this new account, be it for education or long-term wealth,” Sinnett says. “For those looking to specifically fund their child’s college education, 529 plans still have a clear advantage with tax-free growth and more flexible withdrawal rules. Speaking with a financial professional is a step in the right direction.”
About the American Institute of CPAs
The American Institute of CPAs® (AICPA®) is the world’s largest member association representing the CPA profession, with a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education, and consulting. A founding member of the Association of International Certified Professional Accountants, the AICPA sets ethical standards for the profession, attestation standards, and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state, and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, partners across the profession to build future talent, and drives continuing education to advance the vitality, relevance, and quality of the profession.
###