There’s a change affecting Trump/530A Accounts for minor children that may require important action on your part, or on the part of your family members.
Background
Trump Accounts (also called 530A accounts) were established under the One Big Beautiful Bill Act (OBBBA) as retirement savings accounts for minor children. Trump Accounts offer tax deferred growth on earnings. At age 18, their 530A account automatically converts to an IRA. To be eligible, a child must be a U.S. citizen with a Social Security Number and not be turning 18 in the calendar year the account is established. Distributions are generally prohibited during the child’s growth period. Once permitted, they are taxable as ordinary income and may be subject to a 10% IRS early distribution penalty if taken before age 59½.
Parents/guardians were previously able to create an account on behalf of a child as of July 4, 2026, and can contribute up to $2,500/year pre-tax. An employer can also contribute up to $2,500/year per employee (not per child). Government and non-profit organizations can also contribute shares of corporate stock which don’t count toward the annual maximum contribution of $5,000. Family contributions are made with after tax dollars, and eligible employer contributions may be excluded from the employee’s taxable income. Contribution limits and other restrictions apply, and some rules remain subject to future Treasury and IRS guidance.
Parents/guardians are also able to “opt-in” to be eligible for a one-time $1,000 federal contribution deposit from the U.S. Treasury. This contribution may be available for eligible children born between 2025 and 2028. Note: Accounts can still be opened for older children, but these are not eligible for the $1,000 federal contribution.
What’s changed: As of October 1, 2026, the U.S. Treasury has automatically enrolled all children who are eligible for a Trump/530A Account.
• Parents/guardians cannot opt-out, nor can they close the account.
• Accounts that were created through automatic enrollment do not name a related adult to control the account, which means there is no contact information for account communications, and no beneficiaries are assigned.
• If the account is not claimed, parents/guardians and their employers cannot make contributions, and may miss opting in for the $1,000 Treasury contribution deposit.
• Until/unless accounts are connected to a verified adult, they’re potentially a target for identity thieves.
Important Action Needed
Parents/guardians need to claim automatically enrolled accounts for each child at www.trumpaccount.com. There will be some steps to verify your identity and your eligibility to claim an account on a child’s behalf.
If you have questions, or would like assistance walking through the process of claiming/updating an Account, please contact me, a member of the Vantage Point team, or a Financial Advisor. Please feel free to share this information with other parents you know who may be affected by this.
~Elizabeth Smith CFP®, BFA™ is a Financial Advisor with Vantage Point Wealth Management
All Trump accounts remain held solely with Robinhood/BNY, not with Vantage Point Wealth Management or LPL Financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified financial, tax, or legal advisor.