Treasurer Stacy Garrity: Families Can Open a Trump Account When Filing 2025 Taxes

Harrisburg, PA - Treasurer Stacy Garrity is working to help families understand Trump Accounts (formally titled 530A accounts) established by the One Big Beautiful Bill Act. This new investment account for American families has a pilot program that offers a $1,000 contribution for children born in 2025 through 2028.

"The money available through the Trump Account program is a real investment in the future leaders of our country. I encourage eligible families across Pennsylvania to take advantage of the $1,000 and to learn more about the program as it rolls out."

Trump Accounts are a new type of tax-deferred investment account in which individuals and employers will be able to contribute a maximum of $5,000 per year. While the $1,000 deposit is not available for those born before 2025, families with children under 18 can open and save with a Trump Account on their own.

When filing 2025 federal taxes, families can elect to enroll in a Trump Account for eligible dependents by submitting IRS Form 4547. This form can also be filed separate from a tax return. According to TrumpAccounts.gov, families will also be able to enroll through an online portal starting this summer.

Other charitable contributions may be available for a child's Trump Account, such as those offered by Susan and Michael Dell. The Dells have committed $6.25 billion to the program to provide a $250 contribution to the first 25 million accounts opened for children under the age of 10 who live in ZIP codes with a median income below $150,000.

Additional charitable or government entity deposits will not count toward the contribution limit. Beneficiaries cannot make withdrawals from Trump Accounts before the age of 18. Trump Accounts can be used to help fund education, a home purchase or investment in a small business. For beneficiaries with a qualifying disability, assets in a Trump Account may be transferred to an ABLE account during the calendar year of their 17th birthday.

"Trump Accounts are another tool that families can use in conjunction with Treasury's Keystone Scholars and PA 529 College and Career Savings Program to help them meet their family's financial goals."

Pennsylvania families with children born in 2019 and after (and those subsequently adopted by a Pennsylvania family) have a free $100 scholarship for their child through Keystone Scholars. Pennsylvania families are encouraged to start saving for future education expenses with a companion PA 529 account.

The $100 scholarship from Keystone Scholars is invested by the Pennsylvania Treasury Department and grows alongside the child. Money in a Keystone Scholars account can be used for post-high school education expenses once a child turns 18 until their 29th birthday. The program uses no taxpayer dollars. Similar to Trump Accounts, additional contributions from philanthropic and community organizations, as well as employers, can be made into Keystone Scholars accounts.

"It's exciting to see the Federal government implement a program much like our successful Keystone Scholars. I encourage families to claim their Keystone Scholars scholarship and learn about saving with PA 529 and of course make sure they elect to receive contributions for their children that are offered by any government or philanthropic organizations."

PA 529 accounts help Pennsylvania families save for a wide variety of qualifying educational expenses, including those for technical schools, colleges and universities, K-12 education, and certain apprenticeships and credential programs. There are two PA 529 plans to choose from, the PA 529 Guaranteed Savings Plan (GSP) and the Morningstar Gold-Rated PA 529 Investment Plan (IP).

Research shows that children with even a modest amount of savings are three times more likely to further their education after high school and four times more likely to graduate. Programs like Keystone Scholars and the new Trump Accounts have been designed with more than financial well-being in mind; these programs can provide numerous social and emotional benefits for families and children.

Saving with either PA 529 plan provides state and federal tax benefits, including tax-free growth and tax-free qualified withdrawals. Additionally, Pennsylvanians can deduct up to $19,000 ($38,000 if married and filing jointly) in PA 529 contributions annually on their state income taxes. PA 529 accounts are not subject to state inheritance tax and do not impact eligibility for state financial aid.

To claim your child's Keystone Scholars account and learn more about PA 529, visit pa529.com/keystone.