Trump Accounts for kid: what parents need to know about its effectiveness

Honestly there has been so much misleading information about these accounts. The bottom line is you can get "taxed twice" when using all for the benefit of underpormering most other accounts.

"Family contributions go in after tax, just like money put into a regular brokerage account. But unlike a brokerage account, the investment gains are later taxed as ordinary income instead of at the lower capital gains rate. For many families, that means putting their own money into a Trump Account could leave their child worse off than using a normal taxable brokerage account, let alone a 529 plan. 

A simplified example from the report shows this gap. Over 30 years, a $5,000 pre-tax investment could grow to more than $40,000. In a Trump Account funded with after-tax family contributions, the final, withdrawn value is $24,496. That is $2,451 less than the same investment in a regular taxable brokerage account."

Source: https://www.cato.org/blog/trump-accounts-good-idea-bad-design