What CPAs should know about Trump accounts

New legislation can quickly change how CPAs advise families, especially when it introduces an entirely new type of savings and investment vehicle for children. That’s what H.R. 1, P.L. 119-21, also known as the One Big Beautiful Bill Act, did with the creation of Sec. 530A “Trump” accounts.

To help practitioners understand how these accounts work and where they may — or may not — fit into a client’s broader financial plan, the Tax Section Odyssey podcast joined with the AICPA Personal Financial Planning Podcast for a special combined episode. Co‑hosts Cary Sinnett and April Walker, CPA, CGMA, interviewed Sebrina Ivey, CPA/PFS, a nationally recognized tax and financial planning expert and member of the AICPA’s Personal Financial Specialist (PFS) Credential Committee. Their discussion explored how Sec. 530A accounts differ from more familiar tools, highlighted key planning decisions CPAs need to address, and outlined what practitioners know so far — and what remains to be clarified.

The following is an edited Q&A of the joint podcast episode.

What are Trump accounts?

Trump accounts, which are also referred to as Sec. 530A accounts, are designed as tax‑advantaged investment accounts for children under age 18. From a structural standpoint, the best comparison is a special‑purpose IRA. They follow an IRA‑like framework but with very specific eligibility, contribution, and investment rules that apply during what the law calls the “growth period.”

One of the most notable features is a federal pilot contribution. For children born between 2025 and 2028, the federal government will contribute $1,000 to the account if the appropriate election is made. Based on what we know now, that election is expected to be made on a 2025 tax form, Form 4547,

which can be used to open an initial Trump account and also to request the one-time $1,000 pilot program contribution. The form can be included with an individual’s 2025 income tax return, or it can be mailed in separately to the IRS. In addition, the website trumpaccounts.gov will be available for taxpayers to make the election to set up an account and request the pilot contribution. Note that contributions cannot be made to the accounts until July 4, 2026. More information is expected on the details of these accounts from the IRS and Treasury.

How do Trump accounts differ from more familiar options like 529 plans or custodial accounts?

A 529 plan is very clearly focused on education. If the funds are used for qualified education expenses, the growth and distributions can be tax‑free, which makes them a powerful planning tool for that specific goal.

Custodial accounts, such as [Uniform Transfers to Minors Act accounts], are different. They’re primarily about transferring assets to a child, with full control passing at the age of majority, regardless of whether the child is ready to manage those assets.

Trump accounts sit somewhere else entirely. They’re designed for long‑term growth, with the account generally transitioning to treatment as a traditional IRA once the child reaches age 18. That makes them less about a specific short‑term use and more about long‑range wealth accumulation and planning.

Who can contribute to a Trump account, and what are the limits?

In addition to the federal pilot contribution, nonexempt contributions of up to $5,000 per year can be made. What’s especially interesting is how broad the list of potential contributors is. Parents, guardians, grandparents, other family members, employers, friends, and even certain charitable organizations may be able to contribute.

That opens the door to coordinated gifting strategies across families and generations, but it also means CPAs will need to help clients carefully monitor contributions to avoid exceeding annual limits and to properly track basis over time.

What roles and responsibilities should CPAs be prepared for as these accounts roll out?

From an advisory perspective, it’s very similar to what we do with other complex accounts, but with some added layers. CPAs will need to advise on eligibility and elections, monitor contributions, and track basis over what could be an 18‑year period.

There are also very restrictive investment rules during the growth period, which means CPAs need to understand those limitations and help ensure compliance. On top of that, clients will need education around distribution restrictions and how Trump accounts coordinate with other planning tools such as 529 plans, custodial accounts, and trusts. And, of course, all of this is evolving, so staying current as guidance develops will be critical.

What are the investment restrictions during the growth period?

They’re quite narrow. During the growth period — from the time the account is opened through Dec. 31 of the year the child turns 18 — investments are generally limited to certain mutual funds or ETFs that track broad‑based U.S. equity indexes. The funds can’t use leverage, can’t be industry‑ or sector‑specific, and must have very low fees, generally capped at 0.1% of assets.

That level of restriction is much tighter than what you’d see in a Roth IRA, and even more restrictive than many 529 plans. It reinforces the idea that these accounts are meant to be simple, long‑term growth vehicles, rather than flexible investment platforms.

What happens when the child approaches age 18?

Planning becomes especially important around ages 17 and 18. In the year the beneficiary turns 17, there appears to be a one‑time opportunity to roll assets into an ABLE account, if that’s appropriate. Miss that window, and the option goes away.

Once the growth period ends, the account is generally treated as a traditional IRA, with basis that must be tracked. At that point, CPAs should be helping clients evaluate beneficiary designations, distribution needs, and whether strategies such as Roth conversions make sense — particularly in early adulthood, when income may be relatively low.

How should CPAs think about Trump accounts relative to trusts or other planning vehicles?

Trump accounts are really focused on long‑term growth and transitioning assets over time. They can play a role in broader planning, but they’re not a replacement for trusts, especially when clients want more control over how and when assets are used or have short‑term or specialized needs.

In many cases, the right answer won’t be choosing one tool over another, but understanding how Trump accounts fit into a coordinated strategy alongside trusts, 529 plans, custodial accounts, and other vehicles.

Cary Sinnett, CFP, CAP, CFT-1, CExP, is senior manager, personal financial planning, and April Walker, CPA, CGMA, is senior manager, taxation, for the AICPA. Sebrina Ivey, CPA/PFS, CIA, is chief operating officer for GHP Investment Advisors. To comment on this article or to suggest an idea for another article, contact Jeff Drew at Jeff.Drew@aicpa-cima.com.

MEMBER RESOURCES

Webcast

H.R. 1 Master Class Plus: Trump Accounts in Practice, 11:30 a.m. ET, Feb. 26 (1 CPE)

Online resources

Trump Accounts Under Sec. 530A — Timeline and Insights

Podcast episode

“Trump Accounts Are Coming — and You Need to be Ready,” AICPA Personal Financial Planning Podcast and Tax Section Odyssey joint podcast, Feb. 6, 2026