Like 529 college savings plans and custodial accounts held under the Uniform Transfers to Minors Act (UTMA accounts), Trump accounts offer a way to earmark assets for children. How Trump Accounts WorkWhile Trump accounts promote tax-deferred growth, they’re subject to restrictive funding limitations and tax-inefficient withdrawal rules. When it comes to tax-efficient education funding, families should prioritize 529 plans, followed by UTMA accounts, and finally Trump accounts. Therefore, the relevant comparison is between Trump accounts and UTMA accounts. In the early years, given the ongoing taxation of UTMA accounts and the tax-deferred nature of the Trump account, the Trump account appears superior.