economy
January 27, 2026
No need to wait for Trump accounts—you can open a 529 college savings plan now
If you expect to pay for your child's education, you don't need to wait to open a Trump Account. You can start now with a 529 college savings plan.
TL;DR
- Parents can register for 'Trump accounts' when filing 2025 tax returns for children under 18.
- Trump accounts are intended as retirement savings vehicles for newborns.
- Children born between 2025-2028 may receive a $1,000 federal deposit; those born before 2025 may be eligible for a $250 grant from a private pledge.
- 529 college savings plans offer tax-free growth and withdrawals for qualified education costs.
- Experts advise prioritizing 529 plans for education savings due to their direct purpose and simplicity.
- Unused 529 funds (up to $35,000) can be transferred to a beneficiary's Roth IRA after 15 years, subject to rules.
- Trump accounts will convert to traditional IRAs upon the beneficiary turning 18, with withdrawal rules applying.
- The earlier savings start, for either account type, the better the outcome.
- Record-keeping is essential for Trump accounts due to mixed contribution types (parental gifts, federal grants, employer contributions).
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