Born To Invest

Understanding The Trump Accounts

February 6, 2026

Perhaps the biggest piece of financial news in 2025 was the signing of the One Big Beautiful Bill Act. As the name might imply, the act is large and multifaceted. It contains tax and spending policies for all manner of government activity, stretching from the military to

Medicaid. However, whether you are in the world of finance or a soon-to-be parent, one of the most interesting aspects of the bill was the creation of 530A accounts, more commonly known as “Trump Accounts”. These are a new type of tax advantaged investment account for children born between January 1, 2025 and December 31, 2028.

Perhaps the most interesting aspect of Trump Accounts is that they will be funded with $1,000 from the Treasury Department, so no personal contributions are necessary to open one. Once open, up to $5,000 can be contributed each year. These accounts are in the child’s name, and at 18 the Trump Account fully belongs to the child. The tax benefits thereafter largely mirror that of a traditional IRA. It is important to note that like a 529 plan, there are restrictions on what investments one can hold within a Trump Account.

Perhaps the most interesting aspect of the Trump Accounts is that they will be funded with $1000 from the U.S. Treasury.

While you can enroll your child by making an election on your 2025 taxes, you can also

utilize an online portal set to launch this summer. Companies like Charter Communications and BNY Mellon have announced that if their employees open a Trump Account for their child, the company will match the contribution from the Treasury Department. With this in mind, check to see if your employer offers a match prior to opening. One thing to remember is that the eligible child will need a social security number before an account may be opened.

Whether or not a Trump Account is right for you depends on your individual goals and circumstances, and a wise approach is to meet with a financial professional who can examine your situation and help you decide on the best course of action. But there is no denying that investing is going to be essential for the upcoming generations of Americans to secure a stable financial future. It appears the Trump Accounts will offer another avenue for young investors to get started on that journey.

If you don’t have a trusted financial professional you can talk to, Riverfront Capital Strategies is always happy to walk alongside you during your financial journey.

M. Grant Pannell, Financial Advisor

 Securities offered through LPL Financial, Member FINRA/SIPC

(The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  All performance referenced is historical and is no guarantee of future results.  All indices are unmanaged and may not be invested into directly.)