Core Insights - The article explains the Registered Retirement Savings Plan (RRSP) as a tax-advantaged account for retirement savings, allowing contributions from various sources and investment types [2][3]. Contribution Limits - The annual RRSP contribution limits have been outlined for the years 2015 to 2026, showing a steady increase from $24,930 in 2015 to $33,810 in 2026 [4]. - Contribution limits are based on the previous year's income and can be carried over if not fully utilized [5]. Types of RRSPs - There are individual, spousal, and group RRSPs, with individual accounts allowing for personal investment control and tax deductions [6]. Contribution Deadlines - The RRSP contribution deadline for the 2025 tax year is March 2, 2026, due to March 1 falling on a Sunday [7]. Over-Contribution Penalties - Over-contributions exceeding $2,000 incur a penalty tax of 1% per month on the excess amount until withdrawn [8]. Age Limit for Contributions - Contributions to an RRSP can be made until December 31 of the year the individual turns 71, after which funds must be converted to a Registered Retirement Income Fund (RRIF) or annuity [9]. Eligible Investments - RRSPs can hold various investments, including cash, GICs, mutual funds, ETFs, and stocks, but not cryptocurrencies [11][12]. Withdrawal Programs - The Home Buyers' Plan (HBP) allows tax-free withdrawals up to $60,000 for first-time home purchases, while the Lifelong Learning Plan (LLP) permits withdrawals up to $20,000 for education costs [14][15]. Contribution Calculation - Individuals can contribute up to 18% of their previous year's income, with the possibility of exceeding this limit due to carryover of unused contribution room [16].

Core Viewpoint - The introduction of Trump accounts aims to provide a new savings vehicle for children, with potential for significant long-term growth, but they may not suit every family's financial goals or needs [6][30]. Group 1: Overview of Trump Accounts - Trump accounts are tax-deferred savings accounts for children under 18, allowing parents to contribute up to $5,000 annually after tax, with investments growing tax-deferred until the child turns 18 [4][10]. - The accounts were established through legislation signed into law in July, promising a $1,000 head start for every American baby born between 2025 and 2028, with an additional $250 for eligible children under 10 from a Dell donation [6][7]. Group 2: Financial Projections and Growth Potential - If a family contributes the maximum of $5,000 annually at a 6% growth rate, the account could reach approximately $191,000 by the time the child is 18 [2]. - With initial government seed money and compound growth, the account could potentially grow to $2.2 million by age 60 if left untouched [1]. Group 3: Tax Implications and Withdrawals - Withdrawals from Trump accounts will be taxed at capital gains rates, which may be zero or 15% for most young adults, making it a lower rate than normal income tax [3]. - The accounts do not allow withdrawals until the child turns 18, which may limit flexibility for families needing access to funds before that age [9]. Group 4: Comparison with Other Savings Vehicles - Trump accounts lack some tax advantages compared to 529 plans, which offer tax-deductible contributions and tax-free withdrawals for qualified education expenses [11][14]. - Custodial Roth IRAs provide tax-free growth and withdrawals but require earned income for contributions, unlike Trump accounts [15][19]. - UTMA/UGMA accounts offer flexibility for general savings without specific goals but transfer control to the child at the age of majority, which may concern some parents [21][23]. Group 5: Financial Advisors' Perspectives - Financial advisors suggest that while Trump accounts may fill a specific niche, they may not be suitable for every family's future goals, and traditional savings strategies should not be abandoned [5][30]. - The educational value of Trump accounts in promoting financial literacy is emphasized, as they can help children understand concepts like compound interest [31].