Transcript
530A Accounts aka Trump Accounts – Matt Krueger, Pioneer Financial Consultants
98Q Interviews · Tue Jul 28, 2026
A little bit early today, not quite 8.45.
But now, now is always the best time to chat with someone like Matt Krieger from Pioneer Financial Consultants.
Good morning, sir.
Good morning, Gray.
How are you?
Doing well on a fine and...
Fair as it gets Tuesday morning.
I gotta tell you, I can't even give you a weather related answer because it's just so calm out there today.
Super glad to be dodging those things we've been dealing with lately.
But what have you been dealing with lately, Mr. Krieger?
Yeah, so today I want to talk about that.
538 accounts or what are also known as Trump accounts is they have officially opened earlier this month on the 4th of July.
And we've talked a little bit about it in the past, but we have a little bit more information on what they are and how they work.
And for those not in the know, it's basically a particular type of bank account that qualifies for certain benefits when it's opened, and it often has to do with younger people.
Matt's going to explain all that one in basics, I'm sure.
But I know I've seen them in the headlines lately because some people have gotten their deposits, some people haven't, but it doesn't sound odd quite yet.
Why don't you tell us what's going on there, Matt?
Yeah, so know that the 530 a account as I mentioned also known as the Trump account is designed to help children get a head start on their financial future Know that parents
or other authorized representatives have been able to apply since December of last year.
By mid-June, more than 6 million accounts had been registered, representing a small fraction of the more than 73 million qualified children.
And no greater than what a qualified children is, is a U.S.
citizen under the age of 18 and having a valid
Social security number.
So if any of your children or grandchildren meet that criteria, you would be eligible to open a Trump account.
So I want to answer a few questions.
And first is, why does a Trump account or 538 account matter?
And know that the accounts may capitalize on a child's biggest investment advantage, their time, which of course, Gray, is something that we talk about in a lot of different facets.
But the longer time you're in the market, that's certainly an advantage.
And that's a child's biggest
Right, absolutely.
In fact, one report stated that 530 a accounts could help children become millionaires by retirement.
Of course, that depends on future contributions and returns.
I want to note that all investing involves risk, including the possibility of loss of principal.
And there is no guarantee that any investment strategy will be successful.
But the accounts can also.
be useful teaching tools.
A new app lets users view balances, track investment performance, and make contributions from a phone or tablet.
It also includes financial education modules on ideas like compounding growth and diversification.
On top of that, for eligible children born between January 1st of 2025 and December 31st of 2028, the federal government will provide a one-time $1,000 pilot program contribution.
Of the 6 million registered, 6 million children registered as of, excuse me, mid-June, 1.4 million met the criteria for the grant representing just 39% of the nation's eligible children.
And according to President Trump, 500,000 accounts had received the grants as of July 6th.
So that's a big one to remember and certainly something that we've talked about.
But if you have a child, grandchild, niece, nephew, relative friend that had a child born between January 1st of last year of 2025 and December 31st of
2028, this program or that $1,000 pilot program they will certainly be eligible for.
And the next question I want to talk about, Gray, is how contributions work and know that virtually any individual can contribute to a child's account, many without having to file a gift tax return.
In some situations, employers, government entities, charities, and other organizations can also contribute.
Total contributions are capped at $5,000 per year, which will be adjusted for inflation as years go on.
Employers can contribute up to $2,500 annually per employee's child, which counts against the cap.
By contrast, contributions from state, local, and tribal governments and qualifying nonprofits do not reduce that $5,000 limit.
So just a couple numbers to certainly be aware of.
Then, of course, there are also investment and tax rules.
During the growth period, until December 31st, before the child turns 18, withdrawals are generally not allowed.
The money must be invested in certain low-cost US stock index funds or exchange traded funds, also known as ETFs, with fees of no more than 0.1% per year.
In early July, Treasury
the US Treasury announced that default investment is an ETF that tracks the S&P 500.
The department has also approved several additional investments, which are expected to become available in 20 later this year in 2026.
And this is a big question that we've got just talking about Trump accounts and what happens when a child turns 18.
So no gray that once the child
In terms 18, the account is treated as a traditional IRA under federal rules.
That means that the young adult must have earned income to continue contributing to the account.
And withdrawals begin, excuse me, withdrawals before age 59 and a half will generally be subject to ordinary income taxes plus a 10% penalty unless certainly an exemption applies.
exceptions may be withdrawals for certain college expenses or up to $10,000 for the down towards the down payment of of a child's first home.
But with all that, there are still some uncertainties.
So despite the potential benefits, some issues remain unsolved.
The first
is at a house hearing in late June, lawmakers debated the companies providing account administrative services and whether investment choices should expand beyond passive US stock index funds.
Some officials said that they expect the restrictions to loosen over time.
Questions remain, secondly, questions remain about how 530A accounts
will be treated in college financial aid formulas and whether they can later be converted to Roth IRAs once the child turns 18.
And third, there is a specific hierarchy governing who can open a 530A account.
First a legal guardian, then a parent.
then an adult sibling, and finally a grandparent.
A lower group becomes eligible if a member of the higher group is deemed unavailable, but that term is currently undefined.
So a little bit of confusion there with the wording, but all of these will certainly be resolved over time.
And just like anything, when things are brand new, there's going to be some things that will inevitably change as time goes on.
But just a couple of things that certainly are being talked about right now.
We were talking about, as I was setting this up, I was telling people, hey, stop by.
We'll listen and chat with Matt Krieger of Pioneer Financial.
He's always talking about topical things, like those Trump accounts and interest rates.
And here we are, just like that.
When things pop up, Matt, you guys, you are so...
A phrase that I've really grown to appreciate in my adulthood is continuing education.
My dad is a real estate agent, my mom was practicing law for a while, and both of them had to deal with annual updates because so much changes.
Matt, you're doing continuing education on a daily or weekly basis.
Am I crazy to say that?
No, no, you're not.
Absolutely.
Definitely.
It's one of those things you gotta...
you know, stay up with current rules and regulations, laws, whatever the case may be.
But yeah, it's an ever-changing world, that's for sure.
Well, and knowing you for months, we've not once talked politics, but you've got to deal with it wade through political info and you have to ignore the partisan part of it just to find the facts that are at the root of it all.
Well, I don't care what this senator says about these accounts or what that president, you've got to figure out what it means for the people on the ground here in Price County.
That's what you spend your day doing, right?
absolutely.
And I know you've
mentioned that many times in our shows, just the part of how does this affect me?
And that's that's our job is to explain and educate you on how does it affect you?
whether positive, negative or indifferent.
And it's not selfishness.
It's just facing the facts.
You've got to provide for yourself because nobody else is just going to hand it to you.
So, hey, what does this mean for me?
How do I make sure I'm ready?
And yeah, that often means setting your family up too.
And you guys would be happy to talk about that kind of thing at Pioneer Financial Consultants.
Matt, hit me with that phone number.
Yeah, so our phone number is 715-748-3231.
And if a loved one has asked you questions about Trump accounts, maybe you both have one, but only one of you has gotten the deposit.
Or maybe your kids are different ages.
Maybe you're not sure your kid is the right age.
How old are they?
Hey, talk to pioneer financial consultants.
They'll set you up tailored to you, the solutions you guys give.
Matt, thank you so much for another moment out of a busy schedule from you.
Yes, absolutely.
No, thank you, Gray.
And you enjoy the nice weather
Exactly.
Dodging all the things we've had to deal with.
Let's have a good Tuesday.
We'll see you next week, Matt.
Sounds good.
Thank you, Gray.
Thank you.
That's Matt Krieger, Pioneer Financial Consultants.
And if you know somebody's got those questions I just mentioned, well, hey, one of the best things you can do is go to 98Qcountry.com where I will be archiving this whole conversation.
Pretty much in the next 10 or 15 minutes or so.
So, hey, stay tuned.
We've got a disclaimer, a word from sponsors, and a pile, a heap, a trove, a smorgasbord of country music coming up after this.
Pioneer Financial Consultants is located at 882 East Perkins Street, Medford, Wisconsin, 54451, 625 Ellingson Avenue, Hawkins, Wisconsin, 54530, and 297 Northlake Ave, Phillips, Wisconsin, 54555, phone number 715-748-3231.
The views expressed are not necessarily the opinion of 98Q Country and should not be construed directly or indirectly as an offer to buy or sell any secure
securities or services mentioned herein.
Investing is subject to risks, including loss of principal invested.
Past performance is not a guarantee of future results.
No strategy can assure a profit nor protect against loss.
Please note that individual situations can vary.
Therefore, the information should only be relied upon when coordinated with individual professional advice.
Securities and Investment Advisory Services offered through Osaic Wealth Inc.
member FINRA-SIPC.
Oseic wealth is separately owned and other entities and or marketing names, products or services referenced here are independent of Oseic wealth.
