As another back-to-school season approaches, it’s the perfect time to revisit your education savings strategy—especially in light of significant updates passed this summer. On July 4, 2025, President Trump signed the One Big Beautiful Bill into law. While the Child Tax Credit has dominated the headlines, many of the most meaningful changes for our clients relate to 529 plans and new tools designed to help families save more efficiently for education.
These enhancements provide greater flexibility across a wide range of educational needs—from early learning through to career development. Whether you’re a parent planning for your child or a grandparent investing in future generations, here’s what you need to know.
What’s New for 529 Plans
529 plans have long been a smart way to save for college, but the new law has made them even more versatile. Now, funds from 529 accounts can be used for:
• K–12 private school tuition
• Tutoring, standardized test fees, and online learning tools
• Dual enrollment programs (college-level courses taken in high school)
• Vocational and technical training programs
• Transportation and housing costs associated with educational programs
• Tax-free rollovers to ABLE accounts (beneficial for families with special needs planning)
These updates reframe the 529 as a lifelong learning fund—supporting not just college, but a range of educational and career pathways.
A note of caution: While these expanded options are valuable, using funds earlier could reduce the amount available for future college expenses. Strategic planning is key to balancing short- and long-term needs.
Introducing “Trump Accounts”: A New Savings Opportunity
The new law also introduces a forward-looking tool for newborns: federally funded “Trump Accounts.” Designed to give the next generation a financial head start, here’s how these accounts work:
• Available to children born between 2025 and 2028
• Each eligible child receives a $1,000 federal seed deposit
• Parents may contribute up to $5,000 annually
• Employers can contribute up to $2,500 per year, tax-free
• Funds grow tax-deferred and convert at age 18 into a flexible IRA-style account that can be used for education, buying a first home, or starting a business
Rather than replacing 529s, Trump Accounts are designed to complement them—offering another vehicle to build early wealth and involve extended family or employers in long-term planning.
What Should Families Do Now?
Here are some steps to consider, depending on your current stage of planning:
If you already have a 529 plan:
• Review the expanded list of qualified expenses
• Consider how best to balance short-term educational needs with future college costs
• Evaluate whether a tax-free rollover to an ABLE account makes sense for your family’s circumstances
If you’re just starting to save:
• Starting a 529 now gives you more flexibility in how you use education funds later
• Even modest contributions can grow significantly over time
• We can help you integrate 529 savings into your broader wealth strategy
If you have a new or expected child or grandchild:
• Learn how to open and fund a Trump Account for eligible children
• Explore gifting strategies that combine 529s and Trump Accounts
• Discuss employer contribution options (for your employer or your child’s)
Let’s Align Your Education Strategy
The landscape of education funding is evolving—and these new tools provide more ways to support your family's aspirations. Whether you're thinking about college, career training, or broader wealth-building for future generations, we’re here to help.
If you'd like to understand how these changes impact your existing strategy—or you’re interested in exploring a new account for a child or grandchild—please reach out. We’re happy to guide you every step of the way.