Guide

What is a 530A account?

Last checked October 8, 2026

The short answer

A 530A account is an investment account for a child, created by a 2025 federal law. The money is invested in low-cost stock index funds and cannot be taken out before the year the child turns 18. The law’s own name for it is a “Trump account”; “530A” is the section of the tax code that holds the rules.¹

Where the name comes from

Section 530A was added to the Internal Revenue Code by a law signed on July 4, 2025. The statute calls the account a “Trump account” and treats it as a kind of traditional individual retirement account (IRA), with extra rules that apply during childhood.¹ This site calls it a 530A account. Both names mean the same thing.

Who can have one

Any child who has a Social Security number and is under 18 at the end of the year the account is set up.¹

How a child gets one

Since October 1, 2026, Treasury has opened an account automatically for every eligible child who did not already have one. A parent or guardian claims it in the official Trump Accounts app by confirming who they are, confirming their relationship to the child, and accepting the account terms.²

Claiming matters. Until an account is claimed, family, friends and employers cannot add money to it, and the $1,000 federal deposit is not paid.²

What can go in

From	How much	Counts toward the $5,000?	When withdrawn
The federal government	$1,000, once, for US citizens born 2025 through 2028. Someone has to ask for it.³	No¹	Taxable¹
Family, friends or the child	Up to $5,000 a year in total. Anyone can give, and the child does not need earned income.^1,4	Yes	Not taxed again⁴
An employer	Up to $2,500 a year for each employee, tax-free to the employee.⁵	Yes, it is part of the $5,000⁶	Taxable¹
Charities and governments, through Treasury	Shared equally among a whole group of children, such as everyone born in a given year.¹	No¹	Taxable¹

The $5,000 and $2,500 limits are fixed for 2026 and 2027. From 2028 they rise with inflation, rounded down to the nearest $100.^1,5 There is no tax deduction for money put in.¹ No contributions could be made before July 4, 2026.⁴

How the money is invested

While the child is under 18, the account can hold only mutual funds or exchange-traded funds that track the S&P 500 or another broad index of mostly US companies. A fund cannot use borrowed money, cannot be limited to one industry, and cannot charge more than 0.1% a year in fees and expenses.¹

When the money can come out

Not before January 1 of the year the child turns 18. Until then the only ways out are a move to another 530A account, a rollover to an ABLE account, the return of an excess contribution, or the child’s death.¹ Hardship withdrawals are not allowed.⁴

From that January 1, the account is generally treated like a traditional IRA. A withdrawal is taxed as income, except for the share that comes from after-tax contributions. A 10% additional tax can apply to withdrawals before age 59½ unless an exception fits.⁴

What is still being settled

The statute and one IRS notice set the outline. Much of the detail sits in regulations that are temporary or only proposed: temporary regulations published on September 30, 2026,⁶ and proposals covering the $1,000 program,⁷ employer contributions⁸ and investments.⁹ Proposed rules can change before they become final.

Sources

Last checked October 8, 2026. The rules for these accounts are still being written, so check the sources before acting.