Feature
Trump Account
529 Investment Account
You can change the beneficiary at any time or transfer a portion of the investment to a different eligible beneficiary. Funds can be rolled into the beneficiary's Roth IRA up to $35,000 over time (limitations apply).
Cannot be transferred to another child and rollovers are only allowed between Trump accounts for the same beneficiary.
Beneficiary Flexibility
$5,000 (indexed).
There are no annual contribution limits, however there are state specific maximum account balances generally ranging from $235,000 to $600,000.
Contributions from 501(c)(3) organizations, foundations, and government entities (like the $1,000 federal seed) are exempt and do not count toward the limit. Yes — a one-time $1,000 pilot program contribution from the federal government for eligible newborns (born 2025–2028). Children age 10 or younger born before 2025 living in zip codes with median incomes below $150,000 are eligible for a $250 qualified general contribution. This is a private/nonprofit contribution above and beyond the $1,000 federal government deposit for 2025-2028 births. Non-deductible at the federal level (contributions made with after-tax dollars, creating basis). Grows tax-deferred ; taxes paid on withdrawal in retirement (traditional IRA rules apply after age 18). Generally prohibited during the growth period (until end of year child turns 17). Not specifically designed for education; after the growth period, standard IRA early withdrawal rules apply (Penalty-free withdrawals at 59 ½. 10% early withdrawal penalty generally applies before age 59 1/2, however there are specific exceptions including: • Education expenses (IRC 72(t)(2)(E)) • First-time home purchases (IRC 72(t)(2)(F)) • Birth or adoption (up to $5,000) • Emergency personal expense (up to $1,000)
Annual Contribution Limit
Some states offer small seed contributions, but there is no federal government contribution.
Government or Philanthropic Seed Money
No federal deduction , but many states offer a state income tax deduction for contributions (contributions made with after-tax dollars).
Tax Treatment of Contributions
Grows tax-deferred and tax-free when used for qualified education expenses.
Tax on Growth
Withdrawals During Childhood
Can be withdrawn at any time for qualified education expenses tax-free.
Tax-free and penalty-free for qualified education expenses.
Withdrawals for Education
Flexible — wide range of investment options such as mutual funds, ETFs, age- based or enrollment year portfolios.
Restricted — must track a broad U.S. equity index , no leverage, fees capped at 0.1%.
Investment Options
Yes — employers can contribute up to $2,500 per employee (indexed after 2027) tax-free to the employee's child's account. Employer contributions count toward the $5,000 annual limit. (The DOL issued Technical Release 2026-02 on June 18,
Employer Contributions
Varies by state.
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