Seedling is the app that makes contributing to your child's Section 530A account (commonly known as a Trump Account) automatic. You link a card or bank account once, set a rule, and contributions happen on their own. Seedling does not hold your money, and we do not hold your child's money — Robinhood and BNY Mellon do. We're the automation layer that moves the money there.
The 30-Second Version
- You link a card or bank account to Seedling through Plaid.
- You pick a rule — round-ups on purchases, a flat monthly contribution, a percentage of paychecks, or all of the above.
- Seedling moves the money into your child's 530A account at Robinhood (or whichever brokerage holds the account).
- The money is invested automatically in the fund you've chosen. Default is a low-cost S&P 500 index fund.
- You set it up once. We handle everything else.
If you've already filed IRS Form 4547 and your 530A is open, Seedling plugs straight in. If you haven't, the Form 4547 Filler gets the account open in about five minutes.
What Seedling Does
1. Connects your accounts
Seedling uses Plaid — the same bank-connection standard that powers Venmo, Robinhood, and most consumer finance apps — to securely link your checking account or debit/credit card. We never see or store your login credentials. Plaid handles authentication directly with your bank.
2. Watches for qualifying purchases
When you turn on round-ups, Seedling watches your linked account for qualifying purchases — everyday transactions at grocery stores, gas stations, restaurants, pharmacies, and most retail merchants. Each purchase gets rounded up to the next dollar. Buy coffee for $4.25, the contribution is $0.75.
You decide what qualifies. You can exclude specific merchants, set a weekly cap, or pause round-ups for a month.
3. Moves money to the 530A
Seedling batches round-ups and scheduled contributions and transfers them into your child's 530A account. Transfers happen a few times per month, not per purchase — batching keeps ACH fees from eating into the contribution. Every transfer is visible in the Seedling app.
4. Reports contributions and caps
The 530A has a $5,000 per year combined family contribution cap. Seedling tracks contributions across everyone in the family (parents, grandparents, uncles who've connected to the same child's account) and stops contributions automatically when the cap is reached. No accidental over-contributions, no 6% IRS penalties. See Contribution Limits Explained for the cap mechanics.
What Seedling Does Not Do
- We do not custody money. Your money sits in your bank until a transfer is initiated. Your child's money sits in the 530A at Robinhood, held in custody by BNY Mellon. Seedling is never a middle stop for the funds.
- We are not a registered investment advisor. We don't recommend funds, time the market, or give personalized financial advice. The fund in the account is the fund you (or your custodian brokerage) selected.
- We do not file your taxes. Form 4547 is a one-time filing. Seedling's Form Filler helps you complete it, but you still sign and submit it to the IRS.
- We do not charge a percentage of assets. Seedling's pricing is flat and predictable. See Seedling Pricing for the current plan.
The Contribution Flow, Step by Step
Step 1 — You link a funding source
Connect a checking account, a debit card, or a credit card. Most families use a checking account for scheduled contributions and a debit or credit card for round-ups. You can change or remove a source any time.
Step 2 — You set your contribution rules
- Round-ups: Every purchase rounds up to the nearest dollar. Average family contributes about $25–$40/month this way without noticing.
- Recurring: A flat dollar amount on a set date — e.g., $50 the 1st of every month.
- Paycheck match: A percentage of direct-deposit paychecks, up to a ceiling.
- Boosters: Turn on 2x or 3x round-ups for a specific month. Useful around a birthday.
Any combination is fine. Most families start with round-ups only and add a recurring contribution after three to six months.
Step 3 — Seedling batches and transfers
Round-ups accumulate in a Seedling ledger until they reach a transfer threshold (typically $5), then ACH to the 530A. Recurring contributions transfer on their scheduled date. Every transfer shows up in the app with date, amount, and destination.
Step 4 — The brokerage invests the money
Once funds land at Robinhood (or your chosen 530A custodian), the brokerage invests the contribution into the fund already selected for the account. Default is an S&P 500 index fund at roughly 0.03% expense ratio. You can change the fund by logging into the brokerage.
Step 5 — You get a monthly summary
Once a month, Seedling emails a summary: total contributed, projected 18-year balance at a 7% return, and year-to-date vs. the $5,000 cap. No nagging, no dark patterns, no upsell.
Estimates assume a 7% average annual return. Not a guarantee — all investing involves risk, including possible loss of principal.
What "Qualifying Purchase" Actually Means
A qualifying purchase is any linked-card transaction that Seedling can round up. By default, this includes:
- Groceries, gas, restaurants, pharmacies, retail
- Online purchases (Amazon, direct-to-consumer retailers)
- Subscriptions (streaming, gym, etc.)
Excluded by default:
- ATM withdrawals
- Transfers between your own accounts
- Check deposits
- Bill payments over $500 (to avoid large round-ups on rent)
You can add merchants to an ignore list any time. The term "qualifying purchase" is Seedling-specific — it doesn't affect IRS rules about the 530A. Every round-up dollar counts toward the $5,000 annual contribution cap just like a direct deposit would.
Who Owns the Money
- Before the transfer: your bank owns the money (you have a claim against it).
- During the transfer: ACH is in flight, typically 1–3 business days.
- After the transfer: the money sits in your child's 530A account at Robinhood, held in custody by BNY Mellon. It's legally your child's money — protected by SIPC up to $500,000 per account, plus additional private insurance from the custodian.
Read Where Your Child's 530A Money Lives for the full custody story.
Does Seedling Work if My 530A Isn't at Robinhood?
Yes. Seedling supports 530A accounts at the major brokerages: Robinhood, Fidelity, Vanguard, and Schwab. If you've rolled your account away from Robinhood, you'll re-link Seedling to the new destination. The round-up and contribution mechanics are identical. See Should I Keep My 530A at Robinhood? if you're deciding where the account should live.
Security
- Plaid read-only access. Seedling can see transactions to calculate round-ups. We cannot move money out of your account on our own; every ACH is initiated only on the rules you've defined.
- Bank-level encryption. All account data is encrypted in transit (TLS 1.3) and at rest (AES-256).
- Two-factor authentication. Required on every Seedling account.
- No credential storage. Plaid handles your bank login; Seedling never sees your password.
Common Questions
Is there a minimum contribution?
No. Round-ups can be cents. Scheduled contributions can be as low as $1.
Can grandparents use Seedling for the same child?
Yes. Grandparents link their own bank account to a Seedling profile that points to the same 530A. The $5,000 combined cap is tracked across all contributors automatically. See Can Grandparents Contribute?.
Can I pause Seedling?
Yes. Pause round-ups, skip a recurring contribution, or close the account any time. No fees, no wait periods.
What happens if my bank transfer fails?
Seedling retries the transfer after 3 business days. If it fails twice, we email you and pause that funding source until you fix it. No penalty on the 530A, no impact on contributions from other sources.
Is Seedling FDIC-insured?
Seedling itself doesn't hold money, so FDIC doesn't apply. Your bank is FDIC-insured for cash sitting there. Your child's 530A at Robinhood is SIPC-insured for investments. See Is My Child's Money Safe?.
The Bottom Line
Seedling turns the 530A from a thing-you-meant-to-fund into a thing-that-funds-itself. The account opens with Form 4547. The money flows with round-ups and automatic contributions. We handle the plumbing. You just buy groceries.
If your 530A isn't open yet, start with the Form 4547 Filler — it takes about five minutes.
This article is general educational information, not tax or investment advice. Seedling is not a registered investment advisor or broker-dealer. All investing involves risk, including possible loss of principal.