Group 1 - Trump Accounts are government-funded investment accounts designed to help children build wealth from birth, providing a one-time $1,000 deposit for babies born between January 1, 2025, and December 31, 2028 [1] - Families can contribute up to $5,000 annually for children up to age 18, allowing for significant savings potential [1] - At age 18, Trump Accounts convert to traditional IRAs, which can then be converted to Roth IRAs, enabling tax-free growth for decades [1] Group 2 - The conversion from a traditional IRA to a Roth IRA can be done with little or no tax due, especially for young adults with low earnings [1] - Contributions to Trump Accounts do not require earned income, allowing children to benefit from IRA savings even if they are paid in cash [1] - The structure of Trump Accounts creates a unique opportunity for families to secure tax-free savings for life, transforming a modest account into a powerful wealth-building tool [1]
How a Hidden Twist Could Keep Trump Account Savings Tax-Free Forever
Investopedia·2026-02-10 13:00