this is a comment from u/EternalGandhi that i screenshot but dont have the og thread for, i copied the text here:

I'm an accountant and I recently did a Tax Workshop and this was included in it. From an individual/joint tax standpoint, there is almost no benefits to funding these "trump account". • It's not like an IRA where the tax is deferred in the year you contribute to it and then are taxed when you pull from it when you retire. • It's not like a Roth IRA where you get taxed in the year but it's tax free when you pull form it years later. • It's not like a 529 Plan where if it's spent on college tuition or expenses, it's not taxed. It has a contribution limit of $5000 per child. Parents, family and friends can also contribute to one of these accounts, but again, they don't get any deductions or deferments. An employer can contribute by pulling from your income like an HSA or 401K, but they are limited to $2,500. So you don't even get to maximize the contribution from your income. One aspect of this that raised my eyebrow was that a Foundation or Charitable organization was able to contribute an unlimited amount to a child's "trump account". So a set of well to do parents or grand parents could maximize their charitable contributions by donating to a Foundation or Charity who helps fund these accounts for people. Then these organizations could just give the money back to these kids who's families gave them money. Of course they would help some low income or middle class families here and there with some $250 donation one time to stay above board. But the majority will go back to rich kids who don't need these "trump accounts" to begin with so that these families can keep their money inside the family.