Parents have a new long-term savings option to consider with the rollout of the federal Trump Account program. Children under 18 may be eligible to open one of these tax-deferred investment accounts, while qualifying children born between January 1, 2025, and December 31, 2028, can receive a one-time $1,000 federal seed contribution after the required election is made. The accounts officially begin rolling out in 2026, but many parents still have questions about how they compare with 529 plans, custodial accounts, and other ways to save for a child’s future.
A recent Babylist survey found that nearly three-quarters of parents say they’re likely to open a Trump Account or have already claimed one, even though more than half admit they understand only “a little” about how the new accounts work. Here’s what everyone needs to know.
