Trump's bill alters 529 plans compared to Trump Accounts

The Trump-backed legislation introduced Trump Accounts, a new savings option for children born between 2025 and 2028, starting with a government seed of $1,000. These accounts function similarly to IRAs and are designed to cover education-related expenses, with withdrawals permissible after age 18, including for higher education. The law also expanded 529 plan uses, allowing funds for K-12 expenses, educational therapies, and professional development, with increased withdrawal limits for K-12 education.

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