The “Trump Accounts,” introduced under the Big Beautiful Bill, are a new type of tax-advantaged savings account for children born between 2025 and 2028. Each eligible child receives a $1,000 government deposit, and parents, relatives, or even employers can contribute up to $5,000 per year. Contributions are not deductible, but the account grows tax-deferred — meaning no taxes are due until funds are withdrawn. Money can’t be taken out until the child turns 18, at which point it automatically converts to a traditional IRA in their name. Trump Accounts are a great start for long-term savings, but they differ from 529 plans, which are designed specifically for education expenses and allow tax-free withdrawals when used for tuition or other qualified schooling costs.