Advocacy in action blog

The IRS has reported that parents have enrolled more than 4 million American children in 530A accounts, also known as Trump Accounts. These accounts are a new type of tax-advantaged individual retirement account for children under the age of 18. Under a pilot program, the federal government gives children born between January 1, 2025, and December 31, 2028, whose parents set up accounts in their name $1,000 in seed money. Beginning July 4, 2026, parents, relatives, friends, employers, organizations, and individuals may make contributions to the plans up to annual limits. Trump accounts create opportunities for financial professionals to start conversations with consumers and clients with children about planning for the future, boosting financial literacy, and providing their children with solid financial foundations.

The National Association of Insurance and Financial Advisors (NAIFA) submitted formal comments to the Internal Revenue Service in response to Notice 2025-68 regarding the implementation of Section 530A Trump Accounts.  Read NAIFA coverage in Investment News, 401kSpecialist and Advisor Magazine. 

The bipartisan INVEST Act has passed the House of Representatives in a 302-123 vote. NAIFA supports the legislation to expand retirement-planning options for teachers, employees of nonprofit organizations, and others.

"NAIFA is pleased to see the House take bipartisan action to bolster the ability of more Americans to better prepare for retirement," said NAIFA CEO Kevin Mayeux, CAE. "The INVEST Act would give teachers, hospital workers, nonprofit employees, and others who have 403(b) plans access to expanded investment options, including annuity-linked products that provide guaranteed lifetime income. It would also take steps toward addressing elder financial exploitation and would remove unfair impediments that prevent expert investors who don't meet net-worth thresholds from taking advantage of some sophisticated investments."

Four sections of the bill are particularly noteworthy to financial professionals and their clients.

NAIFA CEO Kevin Mayeux, CAE, issued the following statement on the bipartisan INVEST Act:

NAIFA CEO Kevin Mayeux, CAE, issued the following statement in response to the U.S. Department of Labor’s decision to advance its proposed “Retirement Security Rule” for review by the White House Office of Management and Budget (OMB).

NAIFA members in Washington state and across the country have dedicated their careers to ensuring their clients are well-prepared for retirement. Financial professionals offer a robust variety of products and services, working with employers and employees, alike, to provide retirement security options.

NAIFA appreciates the work of a bipartisan group of federal lawmakers who oppose the Department of Labor’s proposed “Retirement Security” rule that would require a fiduciary-only model for financial services.

Representatives French Hill (R-AR) and David Scott (D-GA) and forty-eight of their colleagues in the House signed a letter to acting DOL Secretary Julie Su and Assistant Secretary Lisa Gomez asking the Department to withdraw its proposal.

NAIFA conducted a survey of more than 1,000 members between November 27 and December 1, 2023, to gauge the potential effects of the U.S. Department of Labor’s proposed “Retirement Security Rule: Definition of an Investment Advice Fiduciary” on the consumers who rely on financial professionals for retirement products, services, and advice.

NAIFA CEO Kevin Mayeux, CAE, issued the following statement on the proposed Department of Labor fiduciary rule expected to be made public later today:

Retirement planners can breathe a sigh of relief.

The IRS has delayed implementing a provision of the SECURE 2.0 legislation that would require retirement plan catch-up contributions by high-income earners to be made as after-tax Roth-style contributions rather than pretax contributions. The legislative language states that the change is effective after 2023, which would have presented unworkable communications, record-keeping, and implementation challenges to plan sponsors and participants as well as advisors. Prior to this fix, some plan sponsors had said they would likely have to eliminate the ability of employees to make catch-up contributions.