530A Accounts (also known as Trump Accounts) FAQ
By CLASP and the National Women’s Law Center
530A accounts, also known as Trump Accounts, were established last summer through the budget reconciliation law, H.R. 1. Beginning on July 4, 2026, families and loved ones can open 530A accounts on behalf of their children. The federal government will seed eligible accounts with one-time $1,000 contributions for babies born between 2025 and 2028. Families, loved ones, employers, and philanthropic donors can make additional contributions to the accounts, up to a total of $5,000 a year. These accounts will act as tax-advantaged savings accounts that grow over time. When children turns 18, they can use the account balance for certain wealth-building activities, like higher education, or let the account balance continue growing.
But 530A accounts don’t adequately target investments to the families who need them most. Instead, these accounts will allow the rich to get richer, while low- and middle-income families will see more limited gains. Our nation needs effective policies to help close the extreme racial and gender wealth gap, but 530A accounts are not the best approach. This FAQ answers common questions about how 530A accounts will operate for families.