A tax-strategy breakdown of the new government "Trump accounts" for kids, useful for parents and especially business owners looking to fund their children's savings cheaply.

• Trump accounts are new government savings accounts for children that funnel money into a low-cost S&P 500 index fund; 6 million kids signed up in the first week.
• The big trick: fund them through a business instead of your savings — an S corp can put in $2,500 per employee (including working kids) as a pre-tax write-off, so two parents plus two kids could move $10,000 tax-free.
• The $5,000 yearly cap is per child, not per family, so more kids means more room; money must be in by December 31, no grace period.
• Robin Hood is currently the only way to open one (via IRS.gov/trumpaccounts or the app); Fidelity and Schwab plan to allow transfers later.
• At 18 the smart play is converting to a Roth in the child's low-income years to lock in near-zero taxes, rather than cashing out and paying a 10% penalty.

Outlook: More business owners will use the S corp write-off angle, and the IRS still owes clarification on multiple employers funding the same child.