530A glossary

A tax-advantaged investment account for U.S. citizen children, funded by family, employers, philanthropy, and (for 2025–2028 births) a $1,000 federal deposit. Locked until 18, then treated under traditional IRA rules. 530A accounts, created under the One Big Beautiful Bill Act and officially marketed by the federal government as "Trump Accounts," launched July 4, 2026. Full rules: the rules reference.

The total of already-taxed dollars contributed to the account. At withdrawal, basis comes out untaxed; everything above it is taxed as ordinary income. Keeping contribution records is how you prove basis, losing them is mistake #4. See it in action in the tax estimator.

Growth earning growth. Each year's returns are calculated on the balance including all previous returns, which is why account values curve upward over long periods rather than climbing in a straight line. The growth calculator's chart is compounding drawn as a picture.

The adult (usually a parent) who manages the account until the child turns 18, opening it, directing contributions, keeping records. The money always belongs to the child; the custodian just holds the keys until January 1 of the year the child turns 18.

A one-time $250 deposit from the Michael and Susan Dell Foundation for children born 2016–2024 living in ZIP codes with median household income of $150,000 or less. Check your ZIP.

The annual fee a fund charges, expressed as a percentage of your balance. The 530A default fund charges 0.02%, $2 per year on a $10,000 balance, low enough to be a rounding error.

The IRS enrollment form that creates a 530A account, filed through the official federal portal, the official app, or an IRS online account. Walkthrough: how to open an account.

A fund that follows a market index instead of paying managers to pick stocks. SPYM, which tracks the S&P 500, is the launch default. Treasury has announced four additional low-cost U.S. index ETFs for the account menu.

Rules that tax a child's investment income above modest thresholds at the parents' higher rate. Relevant to UTMA/UGMA custodial accounts, which owe tax annually, not to 530A accounts, which are only taxed at withdrawal.

Income taxed at regular bracket rates (like wages), as opposed to lower capital-gains rates. 530A withdrawals above basis are ordinary income at the child's rate, usually the lowest brackets for an 18-year-old. Estimate it: tax estimator.

The one-time $1,000 Treasury deposit for eligible U.S. citizen children born January 1, 2025 through December 31, 2028. It must be elected on Form 4547 and is deposited after eligibility is confirmed and the account is activated. There is no income test. Check eligibility or review the deposit status steps.

The rulebook the account follows after the child turns 18: continued tax-deferred growth, withdrawals taxed as ordinary income, and early-distribution rules before retirement age. It's what makes the age-55 projection possible.

January 1 of the year the child turns 18, the first day money can leave the account and the day control transfers from custodian to child. Every cohort's date: deadlines by birth year.

The Census Bureau's approximation of postal ZIP codes, used for income statistics. Our Dell ZIP lookup uses ZCTA median income as its estimate, close to, but not identical with, postal boundaries, which is one reason the Foundation's official determination controls.