A Trump Account is a proposed tax-advantaged savings account for children created in the One Big Beautiful Bill Act (OBBBA). Private contributions are capped annually (with cost-of-living adjustments), while government and qualifying program contributions are handled separately under a subsection (l) program.
The Trump Account is a child-focused savings structure proposed in OBBBA. It allows private contributions up to an annual limit (COLA-adjusted). Separately, governments and qualifying tax-exempt organizations may fund a targeted group of children through a subsection (l) program; those program/government amounts are excluded from the private limit test.
Note: Some operational mechanics depend on final statute and agency guidance.
Under subsection (l), a government or qualifying organization can set objective criteria for a targeted group of children and must allocate contributions equally among those who meet the criteria. These contributions are not counted against the private cap.
| Source | Limit (per text reviewed) | Counts toward private cap? | Notes |
|---|---|---|---|
| Private contributors | $5,000 per taxable year (COLA-adjusted) | Yes | Annual cap applies to non-government, non-program contributions. |
| Government contributions | No dollar cap stated in text reviewed | No | Explicitly excluded when testing the private cap. |
| Subsection (l) program | No dollar cap stated in text reviewed | No | Equal-share rule across the targeted group; excluded from private cap test. |
Unverified items: Employer-specific teen/dependent provisions and any separate $2,500 figure are not found in the Trump Account section we reviewed. Tracked in the Update Log.
A custodian controls the account for the child beneficiary. Control may transition to the beneficiary at adulthood (commonly age 18) or as otherwise defined in statute. Transferability and rollover options, if any, will follow final rules.
Given the program/government contribution pathway under subsection (l), expect rulemaking (or guidance) around eligibility criteria, equal allocation, reporting, and oversight for participating organizations.
This site provides education only and does not offer tax or legal advice.
| 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 + program/government adds | No federal cap (plan rules) | $2,000 per beneficiary |
| Program/government funding | Allowed via subsection (l) | Not applicable | Not applicable |
| Tax on qualified withdrawals | TBD (pending) | Generally tax-free | Generally tax-free |
We cite the One Big Beautiful Bill Act (OBBBA) Trump Account provisions (commonly referenced as §530A in working drafts). We pair excerpts with plain-English summaries in the Source Center.
If you see a discrepancy, please contact the editors. We maintain an Update Log with changes and citations.