In a major win for long-term savers and forward-thinking families, the recently enacted federal tax law—commonly referred to as the “Trump Accounts” legislation—has introduced a new type of savings account in addition to expanding the traditional 529 savings plan rules.

At Wilson Accounting Group, we stay ahead of legislative changes so our clients can make informed, strategic decisions. Here’s what this new law means for your savings and tax planning.

Trump Accounts are a newly created savings vehicle designed to encourage long-term financial security beyond education. These accounts include features not available in traditional 529 plans, such as:

• $1,000 government-funded investment at account opening
• Employer contributions up to $2,500 per year, similar to workplace retirement plan matches
• Continued tax-free growth and withdrawals when used for qualified purposes

This makes Trump Accounts a complementary tool alongside 529s—not a replacement. Families and individuals may find value in using both.

529 plans are tax-advantaged savings accounts traditionally used to fund education. Contributions grow tax-free, and withdrawals remain tax-free when used for qualified expenses such as:

• College tuition, books, and room & board
• K–12 private school tuition (up to $10,000 per year)
• Apprenticeship programs
• Student loan repayments (up to $10,000 per borrower)

The legislation not only created Trump Accounts, but also expanded what qualifies as penalty-free withdrawals for 529 plans. These updates make 529s more versatile than ever before.

New 529-eligible uses now include:

• First-time home purchases (up to a $50,000 lifetime limit)
• Starting or investing in a business
• Retirement savings rollovers (limited transfers to Roth IRAs)
• Health-related expenses not covered by insurance
• Long-term care and caregiving support for family members

Between Trump Accounts and expanded 529 rules, savers now have more ways to build wealth tax-efficiently.

Key opportunities include:

• Start early: Take advantage of compounding tax-free growth
• Leverage employer and government contributions through Trump Accounts
• Think beyond education: Use 529s for housing, entrepreneurship, and health needs
• Build intergenerational wealth: Parents and grandparents can contribute with much more flexibility

Trump Accounts and enhanced 529 plans are powerful new tools for building financial security. These changes reward proactive planning—and we’re here to guide you through every step.

At Wilson Accounting Group, we’ll help you:

• Decide how Trump Accounts and 529s fit into your overall financial strategy
• Develop contribution plans that maximize tax savings
• Navigate eligibility, rollovers, and compliance rules
• Keep your tax plan aligned with current law