Empower to Offer Trump Account Rollovers
The company has already vowed to match federal $1,000 deposits to employees’ qualifying children.
The Empower Annuity Insurance Co. of America, a workplace solutions provider and wealth manager, announced Thursday that it intends to serve as a rollover custodian for Trump Accounts, following final regulations. Also known as 530A accounts, the individual retirement accounts specifically designed for children will launch on July 4.
Withdrawals are not allowed before account owners turn 18, but rollovers will then be allowed into IRAs. Rollovers between Trump Accounts are also allowed, but much guidance must still be released, including rules for providers and investment lineups.
Empower did not share details about the structure or timing of Trump Account rollovers, saying federal regulators were still “actively working” on regulations.
The latest IRS guidance released on March 6 stated that Trump Accounts’ eligible investments must include low-cost index funds tracking U.S. company stock, and U.S. equities must make up at least 90% of the index tracked by the investment fund. As part of a pilot program, the U.S. Department of the Treasury will make one-time $1,000 deposits into accounts of children born between 2025 and 2028 who have a Social Security number and whose parents or guardians elected to set up an account.
On February 2, Empower announced that it would join companies matching the federal deposits to their employees’ qualifying dependents. The investment management company Invesco announced Monday that it would also match government contributions.