If you’re a grandparent, you likely understand the value of planting seeds today that’ll grow into something special for years to come. On July 4, families across the country gained access to a new financial tool designed to enhance your children and/or grandchildren’s financial futures—the 530A account, commonly known as "Trump Accounts." This account got a lot of attention for the seed funding for newborns, but it also has another, lesser-known feature.
Starting with newborns: All children born between January 1, 2025, and December 31, 2028, are eligible for a $1,000 contribution straight from the U.S. Treasury. That’s real money working for them from day one, whether you add another dime or not. But older children can still benefit from these accounts, too: Accounts are available for all American children under age 18, which has been largely overlooked in the press. To establish the account, the minor must possess a Social Security number and be under 18 years old as of December 31 of the year the account is opened; each child is permitted only one account (so be sure to coordinate with the child’s parents!).
Regardless of age, a child can have up to $5,000 per year put into their 530A account. For grandparents who like to give meaningful gifts, this can be a powerful way to help build something lasting instead of another toy that’ll be forgotten by next Christmas. These funds don’t just sit idly by, either. They’re automatically invested in American companies, giving that balance a chance to grow over time. Like any investment tied to the market, there’ll be some ups and downs, so it’s important to keep a long-term perspective.
And I’ll tell you what we like most of all…it’s not just about the dollars and cents. These accounts can help young folks learn how money grows, how investing works, and why patience pays off. While the account belongs to the child, a custodian (usually a grandparent or parent) manages it until the child turns 18, and then the reins are handed over. That means you’re helping build not just wealth, but responsibility. As investment-minded adults, we can help our kids and grandkids develop this same mindset from a young age that they can carry with them throughout their lives.
At the end of the day, every family’s situation is a little different. If you’re wondering whether a 530A account might be a good fit for your grandchildren, we’d be honored to sit down with you, talk it through, and help you make a decision that feels right for your goals.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Trump Accounts offer tax deferred growth on earnings. Family contributions are made with after tax dollars, and eligible employer contributions may be excluded from the employee’s taxable income. A one time $1,000 federal contribution may be available for eligible children born between 2025 and 2028. Distributions are generally prohibited during the child's growth period and, once permitted, are taxable as ordinary income and may be subject to a 10% IRS early distribution penalty if taken before age 59½. Contribution limits and other restrictions apply, and some rules remain subject to future Treasury and IRS guidance. Consult a qualified tax advisor or financial professional before making decisions.