Feds propose ‘Trump Account’ regulations as older workers’ retirement hopes dwindle
Trump Accounts will help eligible children “enjoy years of compound earnings for their future college, retirement and other needs,” an IRS leader said.
The Internal Revenue Service (IRS) has proposed regulations for "Trump Accounts," which aim to provide children with opportunities to save for future expenses like college and retirement on a tax-deferred basis. IRS CEO Frank Bisignano highlighted that these accounts will encourage eligible participants to invest in low-fee mutual funds and ETFs, potentially growing their wealth over their entire lives.
Also known as 530A accounts, President Donald Trump established these accounts specifically for U.S. citizen children born between January 1, 2025, and January 1, 2029. Upon creation, each child receives a $1,000 contribution from the federal government, part of a pilot program.
Currently, there appears to be limited interest among employers regarding Trump accounts. A legal and financial advisor consulted by HR Dive mentioned that these accounts may not be covered by the Employee Retirement Income Security Act (ERISA). Meanwhile, individuals nearing retirement do not seem optimistic about their future.
A report by Zety researchers found that 19% of Gen Xers do not expect to fully retire, while another 19% plan to work past the age of 68. The primary concern cited by this demographic is the rising cost of living.
In response to these financial challenges, Gen Xers are taking steps to improve their financial situation. Thirty-four percent of them are increasing their savings or contributions, while 16% are adjusting their investment strategy. However, financial stress remains a significant issue, with 59% of respondents in PwC's 2026 Employee Financial Wellness Survey reporting stress about their finances. Additionally, 52% of respondents expressed a lack of confidence in planning for long-term goals.
Bisignano emphasized that Trump Accounts could help future generations avoid the financial struggles faced by their parents. "Funds deposited in Trump Accounts enable American children to start investing now and enjoy years of compound earnings for their future college, retirement and other needs," he stated.
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