New Delhi, April 17 -- A new savings scheme introduced under last year's tax bill, referred to as "Trump accounts", is designed to help families start building wealth for children from birth. These accounts sit alongside existing tax-advantaged options such as individual retirement arrangements (IRAs) and 529 plans, but offer different contribution rules, investment limits, and access rules.

For parents, the appeal lies in the early start and long-term compounding potential, as withdrawals are not permitted until the child turns 18. Here's how the savings scheme works.

Trump accounts are expected to become available starting in July 2026. According to IRS guidance, parents can set up these accounts by submitting IRS Form 4547 or through...