530A – what possible reason could parents struggling to contribute to their own IRAs have to start an IRA for a child to spend from at age 18?

So, it’s more of a tool to provide money to children outside of 529 programs, which receive tax benefits if used for education expenses.

Yes, it’s likely to overly benefit more affluent families, but it may provide incentives for some lower (or middle) class Americans to provide some sort of savings for their children, even if they contribute a nominal amount. And employers can contribute, too, if they want.

It does help to smooth consumption at the adult transition level (18 years old for HS grads, 22 for college grads), who may often struggle to provide a down payment for a car or for rent; this could help this transition period, especially for lower/middle class kids.

There are plenty of bad things about the Trump administration; I really don’t see many downsides to the 530A plans, other than is likely a higher benefit to the rich. Plus, Corey Booker proposed something similar (Baby Bonds), so a lot of the outrage is solely due to the name on the account.