I will always stay intentionally outside of politics on this website; however, even the words “Trump Account” can light up some emotions. That being said, this account is too important for your kids. I did a very deep dive into this topic in “Investing for Kids“.

I’ll rehash a little bit of this again. A 530A account is a new type of child investment account that is similar to a 529 mixed with an IRA. You put your money into it with no federal tax deduction (a maximum of $5,000 per year per child). The money can only be invested into a select few broad based index funds, and is untouchable until retirement age.

Some employers are offering matches into these (definitely make use of that), but the really special thing is that any child born between January 1, 2025 and December 31, 2028 will get $1,000 put into their account by the government. Using our standard S&P 500 historical average return rates, that $1,000 alone becomes $445,000 from age 0 to age 65.

So no matter how you feel about the name, even $1,000 in an untouchable growth based retirement account over six decades, can ensure your child’s financial stability. The sign up is on irs.gov/trumpaccounts.

~~Miniwing~~
Parent, Investor, Stoic