ACTEC Trust & Estate Talk Trump Accounts (IRC §530A): Estate, Tax, and Wealth Planning Considerations
Feb 23, 2026
Susan Bart, a trust and estate lawyer and ACTEC Fellow, breaks down the new IRC §530A Trump accounts. She explains rollout timing and the $1,000 seed for newborns. She outlines who may contribute and tight contribution caps. She compares investment rules, distribution limits, and how these accounts convert to IRAs at 18.
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Trump Accounts Convert To IRAs At 18
- Trump accounts are new child investment accounts that convert automatically to an IRA at age 18 with required investment in low-cost broad U.S. equity funds.
- They launch by July 4, cover births 2025–2028, and include an application (draft Form 4547) plus online opening mechanisms.
Follow Contribution Caps And Sources Closely
- Contributions can come from government seed funds, charities, employers (max $2,500/employee), and individuals but individual+employer contributions cap at $5,000/year per beneficiary.
- Charitable contributions must target approved broad classes; watch which institutions will offer accounts.
Charities Can Target Approved Beneficiary Classes
- Charitable organizations can seed Trump accounts but must pick government-approved broad classes by geography and income; major donors may target children not receiving the $1,000 seed.
- Example: hypothetical Dell contribution for children under 10 in specified areas with average net income under $150,000.