Trump Account (Junior IRA)

–Government will deposit $1,000 into this tax deferred account for children born 1/1/2025 – 12/31/2028

–Children born before 2025 can start an account but will not receive the free $1,000

–File Form 4547 with your tax return to enroll your child

–$5,000 max contribution per year per child

–Anyone contribute to the childs account. Grandparents, aunts, uncles, non-relatives

Distributions

–Distribution can only be taken after age 18

–Qualified Expenses → Taxed at Capital Gains Rates

–Non-Qualified Expenses → Taxed at Ordinary Income Rates + 10% penalty

Qualified Expenses

•College/education,

•Home purchase (up to $10,000),

•Childbirth/adoption of first child (up to $5,000),

•Starting a small business,

•Certain emergency expenses