530A Trump Accounts

Category

530A Trump Accounts

PA 529 (GSP & IP)

Keystone Scholars

Primary Purpose

Long-term wealth building; retirement focused with limited education use.

Designed for individuals and families to save for future education in a tax-advantaged way.

Keystone Scholars sets the expectation at birth for every child in Pennsylvania to pursue some form of post-high school education and encourages families to start saving on their own early in the child’s life.

Avaliable Since

Created in 2025; contributions began July 4, 2026.

Created by Act 11 of 1992. Recently celebrated over 30 years of savings.

Established by Act 42 of 2018, passed by the General Assembly with bipartisan support, Keystone Scholars was signed into law by Governor Tom Wolf on June 22, 2018.

How to open

530A Trump Accounts are automatically opened after an SSN is created for a child. The account can be claimed on the 530A Trump Accounts app available at trumpaccounts.gov or with IRS Form 4547.

You may enroll online, complete an Enrollment Form, or call 800-440-4000 to request an enrollment kit.

Keystone Scholars families receive instructions in the mail on how to claim and view their child’s account about 5 months after their birth. Accounts can be claimed online at pa529.com/keystone.

Contribution Deadline

Generally before January 1 of the year the child turns 18; annual contributions must be made within the calendar year. Unlike traditional and Roth IRAs, Trump Account contributions for any calendar year may only be made during that year – contributions cannot be designated for a prior tax year.

None. However contributions to a PA 529 GSP account before August 31 of each year by receive tuition inflation on September 1.

N/A

Excess Annual Contributions

If contributions exceed the $5,000 annual limit, excess funds are automatically redirected to a separate Supplemental Account — a standard taxable custodial account (UGMA/UTMA) that does not receive tax-deferred treatment.

No annual limit; contributions may be made until the Maximum Contribution Limit is reached. Currently, the Limit is $511,758, but is subject to change.

N/A

Account Fees

By law, annual investment mangement and fund expense fees may not exceed 0.10%.

GSP: All PA 529 GSP asset-based fees are waived for the year beginning July 1, 2026, and ending on June 30, 2027. After June 30, 2027, PA 529 GSP accounts are subject to annual asset-based fees of up to 0.40%.
IP: Asset-based fees vary by portfolio and range between 0.17% - 0.26% with a $10 annual fee, which may be waived.

N/A

Early Access Penalty

Withdrawals made before at 59½ are subject to a 10% penalty, with some qualified exceptions.

The earnings portion of a withdrawal not used to pay for qualified expenses may be subject to federal income tax and a 10% federal penalty tax; the entire withdrawal may be subject to state and local income taxes.

N/A

529-to-Roth IRA Rollover

Account automatically converts to traditional IRA at age 18.

Up to $35,000 per beneficiary (lifetime) may be rolled over from a 529 account to a Roth IRA for the same beneficiary. The 529 account must be open for 15 or more years and funds must be in a 529 account for more than 5 years. Other rules apply.

N/A

Excess Funds

After 18, follows IRA rules; can be left to grow for retirement. ABLE account rollover permitted only during the calendar year in which the beneficiary turns 17 (after which the ABLE rollover is no longer available).

While no mandatory distributions are required, at any time, the account owner can roll unused funds to a Roth IRA or ABLE account (if eligible); change beneficiary or transfer funds to another 529; or withdraw (with tax/penalty on earnings, as applicable).

N/A

Flexible Uses

Limited. After transfer to a traditional IRA, certain early distribution penalty exceptions exist (higher education, first-time home purchase, etc.). However, all distributions are generally still subject to ordinary income tax. No ability to change beneficiaries or rollover to a Roth IRA tax-free.

No mandatory withdrawals at any age, account may can be maintained if child does not pursue education and can be used for wide variety of qualified expenses. 529 accounts can also be rolled into Roth IRA or to pay down student loan debt.

N/A

Sponsored By

Federal Government

State Government

State Government

Who Owns Account

Child when they turn 18

Individual account owner (adult) has full control. Beneficiary has no ownership of or ability to direct funds.

Until the beneficiary uses it between 18-29, it is owned by the PA 529 program.

Withdrawals During Childhood

Distributions are prohibited during the growth period, except for a rollover into an ABLE account for disabled individuals only in the year in which the beneficiary reaches age 17.

Expenses up to $20,000 per year, per beneficiary at an elementary or secondary public, private, or religious school. Non-qualified distributions are possible, but subject to taxation.

N/A

Rollover to ABLE Account

Yes— the entire balance can be rolled over to an ABLE account in the year the beneficiary turns 17 (for individuals with disabilities). At this time, funds from 530A Trump Accounts cannot be rolled over or transferred into a 529 plan.

Account owners can roll over 529 college savings accounts to ABLE plans, up to the ABLE annual contribution limit (currently $20,000).

N/A

Account Control

Managed by a "responsible party" (parent/guardian) during childhood; child takes over at adulthood.

Managed by “Account Owner” (adult parent, grandparent, guardian, etc.) or even beneficiary (if adult).

Account owned by the PA 529 program, but online access is availble to parent or guardian.

Number of Accounts

Only one funded Trump Account allowed per child at any time.

Only one beneficiary may be designated per account, but an individual may be the beneficiary of more than one account.

Only one Keystone Scholars scholarship per child born on or after January 1, 2019.

Citizenship Requirement

The $1,000 pilot contribution requires U.S. citizenship; general account opening does not specify citizenship explicitly.

Any U.S. citizen or resident alien with a valid Social Security number or taxpayer identification number who is 18 years of age or older with a permanent address that is not a PO Box may open a GSP account.

A PA 529 account is required to access Keystone Scholars funds after a child turns 18. To open a PA 529 account, see PA 529 citizenship requirements.