Trump Account vs Other Savings Accounts

How does the new Trump Account stack up against 529 plans, Roth IRAs, and custodial accounts?

Feature Trump Account (§530A) 529 Education Savings Roth IRA (Custodial) UTMA/UGMA Custodial
Annual Limit $5,000$18,000$7,000$18,000
Tax on Contributions after-taxafter-taxafter-taxafter-tax
Tax on Growth tax-deferredtax-freetax-freetaxable
Tax on Withdrawal Ordinary income tax (traditional IRA rules at 18)Tax-free for qualified education expenses; 10% penalty + income tax otherwiseTax-free on qualified distributions (age 59½ + 5-year rule)Kiddie tax on unearned income over $2,500 (2025)
Investment Options S&P 500 or broad U.S. equity index funds/ETFs onlyState-specific plan options (mutual funds, age-based portfolios)Stocks, bonds, ETFs, mutual funds — nearly unlimitedStocks, bonds, ETFs, mutual funds, real estate — nearly unlimited
Age Restriction Under 18 at end of election year; converts to IRA at 18NoneChild must have earned incomeTransfers to child at 18-25 depending on state
Income Restriction NoneNoneMAGI limits apply ($161K single, $240K joint for 2025)None
Usage Restrictions No withdrawals before 18 (except rollovers, excess, or death). Standard IRA rules after 18.Qualified education expenses (tuition, room, board, K-12 up to $10K/yr). Can roll to Roth IRA (limits apply).Contributions can be withdrawn anytime. Earnings penalty-free at 59½.Must be used for benefit of minor. Becomes child's asset at majority age.
Federal Seed Money $1,000 None None None
Employer Contribution Up to $2,500/yr No No No

Disclaimer: This comparison is for educational purposes only and not tax or financial advice. Account features and limits may change. Consult a qualified professional before making investment decisions.