The Financial Compass

For new parents, or soon-to-be parents, family planning and education planning can be a whole new world. There are UTMA/UGMA accounts, 529 Plan accounts, Minor Roth IRAs, and now Section 530A Child Savings or Trump Accounts.

If you are looking for full breakdown on Trump Accounts and the other investment vehicles, please see our last blog post in June Trump Accounts: A Guide for New Parents – Stillwater Private Wealth.

This post is more targeted. Most employees are contributing up to their employer’s retirement plan match. Why? It can offer anywhere from 25-100% immediate return on that contribution. After you invest, it is a different story, but you get the point.

For IBM employees, while your company no longer offers matching 401(k) contributions (hello retirement benefit accounts), IBM does now offer, “IBM-funded contributions to Section 530A Child Savings Accounts, or Trump Accounts,” per IBM earlier this year.

What does it mean for you? IBM will contribute:

• An additional $1,000 for eligible children born between 2025 and 2028
• A second $1,000 IBM contribution when parents contribute $4,000 within 24 months of their child’s birth or the federal government’s effective date of July 2026, whichever occurs later

While Trump accounts are not our preferred investment vehicle for children, receiving the $1,000 seed funding from the federal government plus matching contributions from your employer makes it worth funding to those necessary levels, in our opinion.

If you want to take advantage of IBM employer matching contributions, here are your next steps.

1. Open a Trump account for your eligible child at https://trumpaccounts.gov/
   • a. Receive the $1,000 seed funding from the federal government
   • b. Inform IBM of your eligible account to receive their matching $1,000 contribution
2. Wait until the next calendar year to make your $4,000 contribution
   • a. Inform IBM of your contribution to receive their matching $1,000 contribution
   • b. ***You wait until next year because the annual maximum contribution is $5,000 and that includes employer contributions—IBM will not be eligible to make that second matching contribution until the next calendar year

This is what we view as the cleanest approach. Maybe IBM has already considered the annual contribution limits, and you can make the $4,000 contribution in year one. It is worth confirming with them first to avoid any potential headache.

If you have any questions or want to discuss family, education, or any other financial planning needs further, the Stillwater team is here to help IBM employees. 

DISCLAIMER 

The information provided does not constitute legal, tax, or financial advice. Before making any investment or financial decisions, you should consult with a qualified attorney, tax advisor, or financial professional who can consider your individual circumstances.

SOURCES

+ IBM HR. (2026, January). Announcing IBM Contributions Contd.