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-tax | after-tax | after-tax | after-tax |
| Tax on Growth | tax-deferred | tax-free | tax-free | taxable |
| Tax on Withdrawal | Ordinary income tax (traditional IRA rules at 18) | Tax-free for qualified education expenses; 10% penalty + income tax otherwise | Tax-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 only | State-specific plan options (mutual funds, age-based portfolios) | Stocks, bonds, ETFs, mutual funds — nearly unlimited | Stocks, bonds, ETFs, mutual funds, real estate — nearly unlimited |
| Age Restriction | Under 18 at end of election year; converts to IRA at 18 | None | Child must have earned income | Transfers to child at 18-25 depending on state |
| Income Restriction | None | None | MAGI 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 | Contributions can be withdrawn anytime.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.
Detailed Comparisons
Trump Account vs 529 Plan
Education savings, tax treatment, contribution limits
Trump Account vs Roth IRA
Earned income, traditional vs Roth tax treatment
Trump Account vs UTMA/UGMA
Custodial accounts, kiddie tax, investment flexibility
Trump Account vs Coverdell ESA
Education savings, income limits, age-30 deadline
Trump Account vs Baby Bonds
Policy comparison: universal vs income-targeted
Run the Numbers
Growth Calculator for projected returns