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Trump Accounts Tax Trap | Raleigh News
A new “Trump Account” savings plan for kids promises a $1,000 government boost at birth and tax-free growth—until it’s not. While the idea of early compound interest is smart, the tax rules backfire: earnings are taxed at ordinary income rates, not the lower capital gains rate. That makes it less advantageous than other savings tools. Rolling it into a Roth IRA later requires financial know-how, which may deter average families. Congress has a chance to fix it—by adding a tax deduction for contributions, like with 401(k)s and IRAs. The goal should be simplicity, not complexity, to truly help…
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