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This is an account for the child once they turn 18. This is not money for the parents.
by tapoxi 8mo ago
This is an account for the child once they turn 18. This is not money for the parents.
- unsnap_biceps 8mo agoIt appears that it's limited even after 18. After the growth period (that is, starting January 1st of the calendar year in which the child turns 18), most of the rules that apply to traditional IRAs will generally apply to the Trump account. For example, this means that distributions from the Trump account could be subject to the section 72(t) 10% additional tax on early distributions, unless an exception applies with respect to the child (such as for distributions for higher education expenses or first home purchases). https://www.irs.gov/instructions/i4547 https://www.irs.gov/instructions/i4547
- amluto 8mo agoDoes that mean that anyone who contributes their own money to their child’s Trump account is contributing post-tax dollars but the money gets taxed again when distributed (presumably less the basis of the contribution, which will be negligible by the time the money is distributed)?