Back to Research Library and Insights

Trump Accounts address a real need. So why have only 12% of SaverLife parents signed up?

  • SaverLife

A new wealth-building tool for children

When SaverLife members – many of whom live on low- to- moderate incomes – talk about wealth, they often mention their kids. To many SaverLife members, wealth building is inextricably linked to securing a strong financial future for their children.

Financial tools and products that can further this aspiration, including 529s, are well-received and used by SaverLife parents. Financial tools and products, including 529s, that can further this aspiration are well-received and used by SaverLife parents. Even when managing tight budgets on lower and inconsistent incomes, SaverLife parents utilize these types of accounts at three times the rate of families nationwide.1

That means that when I’m gone, my kids will have something, whether it’s a house or it’s some actual money that they can do what they need to do with it. It also means that when I pass, I’m not a burden either.
SaverLife Member (NJ)

530A accounts, otherwise known as Trump Accounts, are a new type of tax-advantaged investment account that has the potential to be transformational for intergenerational wealth building, thanks in part to seed funding available to eligible children through the federal government and philanthropic donations.2,3 These 530A accounts are set to officially open this July 4th, after initial sign-ups began over the 2025 tax season.

  • Who can open an account? The parents or guardians of a child under the age of 18. The child must have a Social Security number and be a U.S. citizen.
  • How to open an account? Parents or guardians can currently sign up for accounts on behalf of their children and have been able to sign up since the 2025 tax season. Families can make an election to establish an Account, but regular contributions and federal pilot contributions cannot be deposited before July 4, 2026.
  • Who is eligible for seed money? There are three different types of seed funding available. The first is $1000 from the federal government, available to children born between January 1, 2025, and December 31, 2028. The second is a philanthropic contribution of $250 to the first 25 million accounts opened for children born between 2016 and 2024 and who live in zip codes with median incomes below $150,000. The third is $250 available to children with Trump Accounts living in select communities.

A valuable tool?

At face value, Trump Accounts appear to be a valuable tool for helping families build wealth for the next generation. At age 18, Trump Accounts generally become subject to traditional IRA rules, meaning they can use the money saved for wealth-building endeavors, such as homeownership or higher education, or allow it to continue to grow. 

But in its current design, much of a Trump Account’s potential depends on households maximizing their contributions,4,5 which is out of reach for many SaverLife families. Additionally, tax-advantaged savings accounts for children have been available to families for years, such as 529 plans and Coverdell Education Savings Accounts. Given that SaverLife families are rarely saving the maximum allowable contribution in existing accounts, making contributions to Trump Accounts would likely require SaverLife members to shift some or all of their savings from other accounts. Research on checking accounts and retirement accounts has shown that spreading money across too many accounts can be financially risky.6,7

So a key question is whether parents, especially low- and moderate-income parents, see enough of a benefit to Trump Accounts to add another account to their roster or make the switch to Trump Accounts.

Few members have signed up

Among our SaverLife members who are parents, just 12% who responded to our April 2026 survey said that they had signed up for a Trump Account, despite having the potential to address a real need that we hear from SaverLife parents.

Compare this to the 20% of SaverLife parents in the same April 2026 survey who reported using tax-advantaged education savings plans, such as 529 plans or Coverdell Education Savings Accounts – plans that are widely understood to have not met their potential in part because of low take-up rates.8 That’s a 67% higher account ownership rate for 529 or Coverdell accounts compared to Trump Accounts.

SaverLife parents report lower Trump Account sign-up than 529 and Coverdell use

12%

Reported signing up for a Trump Account

20%

Reported having a savings account for educational expenses (529 Plan, Coverdell Education Savings)

What Does That Mean?

Early reported sign-up remains limited among SaverLife parents, suggesting that Trump Accounts may require clearer eligibility information, stronger outreach, and explicit benefit protections to reach their wealth-building potential. While our survey wasn’t designed to answer why or why not parents are signing up for Trump Accounts, we have some ideas, including:

  • Comparing new apples to older oranges. Some may argue that Trump Accounts are simply too fresh to do a fair comparison of take-up with 529 plans and Coverdells, which have been around for decades. Comparable data from the early days of 529 plan rollout are sparse, but in 2010, over a decade after the plan launched, parent take-up sat at 6% – half of sign-ups for Trump Accounts among SaverLife members.9 Yet, it remains to be seen to what extent Trump Account sign-ups translate to account openings, which will provide an even closer comparison to the early numbers on ownership of education savings accounts.
  • Unclear benefits for kids not eligible for the seed funding. Many financial experts say that there are clear benefits to signing up for a Trump Account for families and children eligible for the seed funding, either the $1000 available from the federal government or the $250 available from philanthropic contributions.10 But for families with children who are not eligible for the seed funding,11 the payoff is less clear.12 Keeping track of another savings account may even add to the cognitive load of overburdened families. Unless a child is eligible for that seed money, parents may have opted to keep their financial lives streamlined and focus on saving in the 529 plans or Coverdell Education Savings Accounts.
  • Adding risk to households’ financial lives in the short term. SaverLife households often make ends meet with the support of means-tested programs, such as SNAP, Medicaid, SSI, and TANF. Yet, there is concern and confusion about whether contributions to and withdrawals from Trump Accounts might jeopardize the receipt of these benefits, potentially undermining a household’s financial stability in the short term.13 Rather than risk potential short-term upheaval, some SaverLife parents may have opted out entirely.

What can policymakers do?

To ensure that Trump Accounts can live up to their potential as a tool parents can use for wealth building, here are some opportunities policymakers can consider:

  • Swiftly issue explicit guidance that excludes Trump Accounts from public benefits calculations. Agencies deploying public benefits can issue guidance, likely linked to Trump Accounts’ status as a type of individual retirement account. For instance, the USDA could explicitly include Trump Accounts in its list of retirement accounts excluded when determining a household’s eligibility for SNAP.14 Short of that, states with asset limits can issue guidance on whether Trump Account contributions will count towards their asset limits.15 Once there is clarity around the implications of Trump Accounts for families’ benefits eligibility, it will also be critical to target messages to parents who are using benefits and have not yet opened an account.
  • Target additional philanthropic contributions or government investment based on families’ financial circumstances. The Dell family’s philanthropic contribution to children between the ages of one and ten living in low-income communities provides a path for how to distribute additional investments in a way that can offer value to older children, especially those who are not in the financial position to reach savings maximums in other tax-advantaged savings accounts with personal contributions.
  • Conduct focused outreach about Trump Accounts that highlight the value of the seed funding for eligible families. Messages that use framing such as “claim your child’s $1000” may be especially impactful for encouraging eligible families to open their Trump Accounts with seed funding.16 Should additional funding become available, future messages using this framing could be sent to eligible families.

Next steps

Here at SaverLife, we have a unique opportunity to engage directly with and learn from our member community of more than 179,000 parents across the country. With July 4th expected to be a key moment for engaging families around 530A accounts, we will launch targeted messaging across our membership to support our members’ wealth-building aspirations. The campaign will encourage account activation among families who have already enrolled and promote sign-up and seed-funding claims among those who have not, using the messaging framework outlined above. 

The case for more and better wealth-building tools is clear. Our members need it. Policymakers know it. Now is the time to ensure that the tools at our disposal are designed for the lives of families for whom it can make a real difference.

Data comes from a SaverLife survey fielded to its members in April of 2026 to share their tax time experiences, including their use of different tax-advantaged savings accounts. Analysis was conducted on the responses of 358 parents who responded to the survey and answered questions about 529 plans and Trump Accounts.

Endnotes
  1.  Estimate calculated by comparing the share of SaverLife parents living with children under the age of 18 who reported that they held a 529 plan or Coverdell to the share of families that had children under 25 living with them who reported having 529 plans or Coverdells in the 2010 SCF, the most recent year for which comparable data is available.
  2.  Babies born since January 1, 2026 are eligible for the government-issued $1000. Children born between 2016 and 2024 in certain zip codes are eligible for the $250 funds from the Dell Foundation. 
  3.  https://www.commonplace.org/p/the-case-for-trump-accounts-a-debate 
  4.  https://www.ishares.com/us/investor-education/preparing-for-retirement/what-are-trump-accounts 
  5.  https://www.urban.org/urban-wire/how-trump-accounts-measure-evidence-early-wealth-building-policy
  6.  https://www.gao.gov/products/gao-15-73 
  7.  https://finhealthnetwork.org/research/finhealth-spend-2025-the-cost-of-financial-services-for-american-households/ 
  8.  https://www.edwardjones.com/us-en/why-edward-jones/news-media/press-releases/americans-unaware-529-plans 
  9. https://www.gao.gov/products/gao-13-64. Estimate is calculated on the share of families that had children under 25 living with them who reported having 529 plans or Coverdells in the 2010 SCF.
  10.  https://am.jpmorgan.com/us/en/asset-management/adv/investment-strategies/529-college-savings-plan/529-or-trump-account-the-answer-for-newborns-is-both/ 
  11.  Babies born since January 1, 2026 are eligible for the government-issued $1000. Children born between 2016 and 2024 in certain zip codes are eligible for the $250 funds from the Dell Foundation.
  12.  https://am.jpmorgan.com/us/en/asset-management/adv/investment-strategies/529-college-savings-plan/529-or-trump-account-the-answer-for-newborns-is-both/ 
  13.  https://www.congress.gov/crs-product/R48910 
  14.  https://fna-bwbufwdzbabpezgc.z01.azurefd.us/sites/default/files/snap/SNAP_Resources_Exclusion_Chart.pdf 
  15. A complete list of states with asset limits for SNAP eligibility can be found here: https://www.propel.app/snap/asset-limits-states/.
  16. Reiff et al. Working Paper. Endowed Account Framing: Evidence from Two Field Experiments With 1.5 Million Users.