A simple, factual resource on what the One Big Beautiful Bill Act says about Trump Accounts, how contributions work, and where the open questions are.
A Trump Account is a proposed tax-advantaged savings account for children in the One Big Beautiful Bill Act. Private contributions are capped annually, while government or qualifying program contributions are treated separately under a subsection (l) program.
Save for a child’s future within a new structure that may expand who can help contribute.
Programs and public entities may support targeted groups of children under subsection (l). Rules differ from private limits.
Clarify mechanics early. Separate confirmed statute from items awaiting agency guidance.
Neutral and source-based. We cite the bill text and flag open questions.
Private contributors may add up to the annual limit; governments or subsection (l) programs may contribute under separate rules.
Assets are invested per account rules. Growth benefits depend on final statutory and regulatory guidance.
Qualified uses may receive favorable treatment when defined. Non-qualified uses may face taxes or penalties.
Control may change at age 18 (or as specified). Transferability/rollovers will follow final rules.
We pair short excerpts from the bill with plain-English explanations. Education only.
“Private contributions are limited per taxable year… Contributions made by a government or through the subsection (l) program are excluded when testing the private limit.”
Note: This is a short excerpt for illustration; see full text and citations in the Source Center.
Open the Source CenterA quick look at how the proposed Trump Account compares with existing education and savings options.
| Feature | Trump Account (proposed) |
529 Plan | Coverdell ESA |
|---|---|---|---|
| Primary use | Broad child savings (pending rules) | Education expenses | Education expenses |
| Annual contribution limit | $5,000 (private) + unlimited program adds | No federal limit (plan rules apply) | $2,000 per beneficiary |
| Eligible contributors | Individuals, governments, tax-exempt programs | Individuals & certain entities | Individuals within income limits |
| Tax treatment of growth | Tax-deferred (pending guidance) | Tax-free if used for education | Tax-free if used for education |
| Owner control | Custodian until age 18 (defined by law) | Account owner (retains control) | Account owner (retains control) |
| Government or program funding | Allowed under subsection (l) | Not applicable | Not applicable |
| Qualified withdrawals | TBD in final statute | Education only | Education only |
Data sources: OBBBA draft text §530A; IRS Publication 970 for 529 and ESA rules. This table is for education only and not tax or legal advice.
We separate confirmed bill language from items that need clarification or future guidance. Education only.
Note: This page reflects our best read of the bill text. It will change as updated drafts, committee amendments, or agency guidance emerge.
Short, plain-English definitions with links to the full glossary and bill excerpts.
The child the account is intended to benefit. May receive contributions from private sources, governments, or subsection (l) programs under the statute.
The adult who controls the account on behalf of the child until legal transition (often age 18 or as specified by law).
A program mechanism for governments or tax-exempt organizations to contribute to a targeted group of children, with equal-share rules.
The set of children selected by a government or qualifying organization for subsection (l) contributions; funds must be allocated equally among the group.
An annual inflation adjustment that can increase statutory dollar limits, such as the private contribution cap.
The annual cap on non-government, non-program contributions. Government and subsection (l) amounts are excluded from this test per the statute reviewed.
Clear, source-driven answers. Each item links to a deeper single-question page.
No. The bill text excludes government and subsection (l) program contributions when testing the private contribution limit.
See more: Full answer · OBBBA §530A(c)(2)
The text we reviewed does not state a dollar cap for these contributions. We’ll update if later drafts or guidance add one.
See more: Full answer · OBBBA §530A(l)
$5,000 per taxable year, subject to a cost-of-living adjustment (COLA). Government and program amounts are excluded from that test.
See more: Full answer · OBBBA §530A
Not yet. Availability depends on the bill’s passage and any subsequent agency guidance and implementation timelines.
See more: Full answer
529 plans are for education expenses with tax-free qualified withdrawals. The Trump Account’s uses and distribution rules are pending; it also contemplates government/program contributions via subsection (l).
See more: Full answer · Comparison table
A custodian controls the account for the child. Transition and control rules at adulthood will follow final statutory text and guidance.
See more: Full answer · Glossary: Custodian
Neutral, source-driven education. We translate legislative text into plain English and clearly label what’s confirmed vs. what’s still uncertain.
This site explains the proposed “Trump Account” provisions from the One Big Beautiful Bill Act (OBBBA) in plain English. We cite the relevant sections, highlight open questions, and keep an update log as drafts or guidance evolve.
This resource is maintained by Onesta Wealth Management as public education. We are not a government agency and do not offer tax or legal advice on this site.
Questions or correction requests? Contact the editors.
Information on this site is for educational purposes only and may not reflect the final law or agency guidance. Nothing here is tax, legal, or investment advice. Consult a qualified professional for your situation.
Last updated: · Maintainer: Onesta Wealth Management
Client-ready explainers, compliance-aligned talking points, and a transparent update feed. Education only.
Use our site disclaimer verbatim in client materials.
| Say | Not this |
|---|---|
| “According to OBBBA §530A…” | “Guaranteed under current law.” |
| “Government/program adds are excluded from the private cap test.” | “There’s no limit, period.” |
| “Employer provisions are unverified in the section we reviewed.” | “Employers can put in $2,500 for all teens.” |
| “We’ll update when final guidance clarifies uses and penalties.” | “Withdrawals will definitely be tax-free.” |
Private cap vs. subsection (l) program/government adds.
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Not as a substitute. Present it neutrally as a proposed framework with distinct rules and pending guidance. Always compare features and risks.
Use an “Open Questions” box in decks: list qualified uses, distribution penalties, and any employer rules as “Pending — awaiting statute/guidance.”
Copy of the client handout used, date-stamped bill excerpt, and a note that you advised consulting a tax professional.
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We’re structuring a short module on §530A mechanics, contribution testing, and disclosure practices. Target length 30–45 minutes.
