NAIFA to IRS: Trump accounts' success will depend on advisors

The National Association of Insurance and Financial Advisors is urging the Internal Revenue Service to make financial professionals a core part of how new Section 530A “Trump Accounts” are rolled out and regulated, warning that families could otherwise struggle to use the child-focused savings vehicles effectively.

In a Feb. 19 comment letter responding to IRS Notice 2025-68, in which the agency offered initial answers to questions and invited comments around Trump accounts, the trade group backed the concept as a tool to build long-term savings for children, combining government pilot contributions, employer money, and private savings.

While Trump accounts already have a boost from big names pledging to make contributions – including Ray Dalio, BlackRock, Robinhood, and Schwab, among others – it argued that the program’s success will hinge on how easily Main Street households can access advice.

Trump Accounts “represent a meaningful opportunity to promote early savings and financial security from birth,” said NAIFA president Christopher L. Gandy, who took the helm in December. “But accounts alone do not build wealth; relationships, education, and disciplined guidance do.”

NAIFA told the IRS that its members are already embedded in the kinds of households Trump Accounts target, with experience across IRAs, 529 plans, ABLE accounts, insurance, and budgeting. The group said advisors are well placed to translate complex eligibility, contribution, and withdrawal rules into straightforward decisions for lower- and middle-income families, and to ensure the new accounts do not crowd out emergency savings or lead to surprise tax bills at distribution.

Read more: Advisors weigh 'Trump Accounts' with existing UTMA, 529 account options

A major focus of NAIFA’s comments was around investment flexibility. As drafted, the program emphasizes index funds and exchange-traded funds. While those tools can be appropriate building blocks, NAIFA warned that a narrow menu may not reflect real-world investor behavior or risk tolerance and could dampen long-term outcomes.

“Restricting access to broader investment options limits customization and prevents advisors from tailoring strategies to the specific needs of the individual,” Gandy said. He added that financial professionals can help clients navigate a wider set of choices and “use that knowledge to maximum value and returns over time.”

The association is asking Treasury to work with Congress to loosen current investment restrictions so advisors can design allocations that better match beneficiary needs and family preferences.

NAIFA is also pressing for clear lines around ERISA. Because Trump accounts are opened and controlled by individuals, even when employers contribute, the group argued the accounts themselves should not be treated as employer-sponsored plans. If they were to be pulled under ERISA, NAIFA warned, employers might have to route contributions through separate trusts and providers could face added litigation risk, potentially discouraging participation.

Read more: Think tank calls for looser ERISA rules on 401(k) investments

Beyond investments and ERISA, the letter calls on regulators to confirm that advisors can help establish and manage Trump accounts under appropriate authority, receive reasonable compensation for that work, and get practical compliance guidance tailored to broker-dealers and RIAs.

NAIFA said it plans to keep working with Treasury and the IRS as rules are developed, arguing that when advisors are fully integrated into the framework, Trump accounts can become an entry point into broader, long-term planning conversations for families that have never worked with a professional before.