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Savings for Kids: Trump Accounts vs. 529 Plans

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In this episode of the Sunlight Tax Podcast, I explain the key differences between Trump Accounts and 529 Plans, two tax-advantaged savings options designed to help families invest in their children's futures.

You'll learn who qualifies for a Trump Account, how these new custodial investment accounts work, contribution limits, tax considerations, and how they compare to traditional 529 college savings plans. I also break down the advantages and drawbacks of each option, including flexibility, eligible uses, long-term growth potential, and strategies for maximizing tax-efficient wealth building.

The spirit of the 529 plan is towards education and education savings. And the spirit of the Trump account is towards retirement savings, a lifetime nest egg.
— Hannah Cole

In this episode of the Sunlight Tax Podcast, I explain the key differences between Trump Accounts and 529 Plans, two tax-advantaged savings options designed to help families invest in their children's futures.

You'll learn who qualifies for a Trump Account, how these new custodial investment accounts work, contribution limits, tax considerations, and how they compare to traditional 529 college savings plans. I also break down the advantages and drawbacks of each option, including flexibility, eligible uses, long-term growth potential, and strategies for maximizing tax-efficient wealth building.

Also mentioned in today’s episode:

00:00 Introduction to Trump Accounts and 529 Plans

02:00 What Are Trump Accounts? Eligibility and Benefits

04:50 Pros and Cons of Trump Accounts

09:07 Understanding 529 Plans and Their Benefits

13:01 Transferability and Investment Options in 529 Plans

17:58 Using 529 Funds for Education and Beyond

20:04 Comparing Purpose and Benefits of Both Vehicles

21:03 Final Tips and Strategic Considerations

If you enjoyed this episode, please rate, review and share it! Every review makes a difference by telling Apple or Spotify to show the Sunlight Tax podcast to new audiences.


Episode Links:

The Sunlight Tax Podcast EP159: My #1 Tip to Make Your Kid a Millionaire

Get my Tax Help on Substack

Get your FREE visual guide to tax deductions

Order my book: Taxes for Humans: Simplify Your Taxes and Change the World When You’re Self-Employed

Watch YouTube video version

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Sunlight Podcast, Personal Finance Hannah Cole Sunlight Podcast, Personal Finance Hannah Cole

The Free Tools on Investor.gov: Test Your Investing IQ

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In today’s episode, I’m talking about the importance of understanding investing fees and sharing some of the free resources and tools available that you can use to learn about investing principles and spot potential scams. 

Join me to learn more about investing and the long-term impact that fees can have on your investment return. 

Listen and Subscribe Here

In today’s episode, I’m talking about the importance of understanding investing fees and sharing some of the free resources and tools available that you can use to learn about investing principles and spot potential scams. 

 

Join me to learn more about investing and the long-term impact that fees can have on your investment return. 

 

Also mentioned in today’s episode:  

  • The importance of diversification 5:20

  • My personal investment strategy 5:50

  • The impact of investment fees 12:26

  • Investor.gov and free resources available 19:00

If you enjoyed this episode, please rate, review and share it! 

Links:

Take the investing quiz 

Use the compound interest calculator

John Bogle (inventor of index funds) on fees

Come to the Money Bootcamp Open House

Watch YouTube Video Version

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