Read Post
Thu, 08 Jan 2026 15:07:27 -0800
marlon from private IP, post #14518323
/all
the new "Trump Account"
https://www.trumpaccounts.gov/
Thu, 08 Jan 2026 15:21:40 -0800
zerosugar from private IP
Reply #11163148
That’s not right because I didn’t get one when I was born.
Wed, 28 Jan 2026 14:21:58 -0800
marlon from private IP
Reply #14799557
https://www.msn.com/en-us/money/taxes/trump-accounts-for-kids-offer-1000-but-add-tax-complications/ar-AA1RO4qm
'Trump accounts' for kids offer $1,000 but add tax complications
Parents are being promised a $1,000 boost for each eligible child through new "Trump accounts," but the offer comes wrapped in complex tax rules and long-term
strings. The accounts are designed to give kids a head start in adulthood, yet the fine print on eligibility, withdrawals, and future tax bills will determine
whether that early gift grows or quietly erodes.
As the Internal Revenue Service and Treasury race to finalize guidance, families are weighing whether these accounts resemble a small trust fund, a political
branding exercise, or something in between. The answer will hinge on how households navigate contribution limits, investment choices, and the risk that today's
tax advantages turn into tomorrow's surprise liabilities.
How Trump accounts emerged as a flagship child-wealth policy
The Trump account program did not appear out of nowhere. It grew out of a broader push in Washington to pair tax policy with long-term wealth building for
children, culminating when legislation that included the accounts passed the House and moved to President Donald Trump's desk. That package, which also carried
changes to programs such as Medicai, framed the new accounts as a way to give every newborn a modest financial stake that could compound over time, rather than
relying solely on traditional safety-net benefits.
Supporters in Congress cast the measure as a generational investment, arguing that a one-time $1,000 contribution at birth could narrow wealth gaps if it is
allowed to grow untouched for nearly two decades. Analysts who have studied similar "baby bond" concepts point to research suggesting that even relatively small
seed deposits can meaningfully change outcomes for low income children, a point echoed in expert commentary on the $1,000 Trump accounts that highlights both
the promise and the risk that fees or poor design could also drain the accounts before adulthood.
What a Trump account actually is, in tax terms
At its core, a Trump Account is a tax preferred savings vehicle created specifically for children, with rules that echo familiar products but do not match any
of them exactly. Policy analysts describe the structure as a dedicated account that receives a government funded deposit for eligible kids, then allows
additional contributions from family or other supporters, with earnings shielded from current income tax as long as the money stays inside the account. The
design borrows from the logic of retirement and education accounts, but it is neither a standard 529 plan nor a traditional custodial brokerage account.
One detailed breakdown notes that Trump Accounts are set up so that contributions are not deductible to the person putting in the money, and withdrawals that do
not meet qualifying conditions can trigger tax on the earnings portion and potential penalties, similar to how early distributions from other tax advantaged
accounts are treated. Critics argue that the tax benefits are modest and that the rules could exclude vulnerable children or penalize families who need to tap
the funds early, concerns laid out in an analysis of how Trump Accounts are tax preferred but still leave some kids behind.
How the $1,000 government contribution really works
The headline promise is simple: a $1,000 government funded deposit for each eligible child, but the mechanics are more nuanced. Under a pilot structure
described by federal officials, the government contribution is a one time seed that lands in the account once it is properly opened and the child's eligibility
is confirmed. That means parents or guardians must complete specific paperwork and meet deadlines, rather than assuming the money appears automatically at
birth.
Guidance from tax authorities explains that the initial $1,000 is meant to be invested, not spent, with the expectation that it will remain in place until the
child reaches adulthood or another qualifying milestone. The same guidance notes that the first 25 million American children are expected to receive this seed
funding, a cap that could leave later born or newly eligible kids without the same boost if Congress does not expand the program. The Internal Revenue Service
has outlined how the first 25 million American participants will be prioritized and how contributions can be made by parents, grandparents, and others once the
account is active.
Who qualifies, and how families are supposed to claim the money
Eligibility is broad on paper, but not universal. Children who are U.S. citizens or qualifying residents and who meet age and identification requirements can
have a Trump account established in their name, with special rules for newborns and for older kids who fall under certain ZIP codes or income thresholds. That
structure is meant to target communities with lower household wealth, although it also introduces geographic and bureaucratic complexity that families must
navigate.
To actually receive the seed money, parents are instructed to make a formal election using a new Internal Revenue Service document, Form 4547, which is being
rolled out alongside online tools. A draft version of that form directs families to provide the child's identifying information and designate a financial
institution or trustee, while also giving state and local governments and nonprofit organizations a role in outreach and support. Reporting on the rollout
explains that a draft IRS form and instructions from Tuesday and the White House are central to how families will claim the money, and that local governments
and nonprofit organizations are expected to help parents complete the process.
How Trump accounts compare with 529 plans and IRAs
For many parents, the most useful way to understand Trump accounts is by comparing them with tools they already know. One financial institution has described a
Trump Account as something you could almost think of as a cross between a traditional individual retirement account, or IRA, and a 529 style education plan.
Like an IRA, the account is meant to hold long term investments that grow tax deferred, and like a 529, it is earmarked for a child's future needs rather than
the parent's own retirement.
There are important differences, however. A 529 plan is a tax advantaged savings account for education expenses, with well established rules and a long track
record, while Trump accounts are brand new and still awaiting full regulatory detail. Some guidance notes that any child who has not yet reached a specified age
can qualify, and that the account can later be converted to an IRA when the child becomes an adult, effectively turning the early gift into a retirement starter
if it is not used for other purposes. Analysts at one brokerage explain that any child who hasn’t aged out of the program can benefit, and that you could
almost think of a Trump Account as a cross between an IRA and a 529, while separate coverage of how other types of savings plans such as a 529 compare
underscores that the new accounts are not a simple replacement.
The Dell donation and the role of private money
Public funding is only part of the story. Earlier this week, billionaires Michael and Susan Dell pledged $6.25 billion to support the Trump Accounts initiative,
a staggering sum that signals how much private philanthropy is being woven into what is nominally a federal program. Their contribution is intended to expand
the reach of the accounts, cover administrative costs, and potentially increase the investment options or matching funds available to participating children.
The Dell pledge also highlights the unusual governance structure of the program, which relies on the Treasury to serve as trustee while inviting outside donors
to bolster the pool of assets. That hybrid model raises questions about accountability and long term sustainability, since future philanthropic enthusiasm is
not guaranteed. Coverage of the rollout notes that On Tuesday, Michael and Susan Dell committed $6.25 billion to Trump Accounts and that the Treasury will serve
as trustee, underscoring how private capital and federal oversight are being braided together.
IRS and Treasury guidance, and what remains unclear
Regulators are racing to keep up with the political rollout. The IRS and Treasury Department have published initial guidance and announced plans to issue formal
regulations for Trump Accounts, spelling out how the accounts will be opened, how investments will be managed, and how withdrawals will be taxed. That guidance
is critical for financial institutions that want to offer Trump account products, as well as for families trying to understand whether the accounts will
interact with other benefits or trigger unexpected reporting obligations.
Even with that progress, key questions remain. Advocates are pressing for clarity on how the accounts will affect eligibility for college financial aid,
Medicaid, and other means tested programs, while tax professionals are watching for details on contribution caps and penalty structures. Regulators have invited
public comments and set a timeline for final rules, signaling that some features could still change before the program is fully operational. One industry
summary notes that The IRS and Treasury Department have issued guidance on Trump Accounts and plan to finalize regulations by F
Wed, 28 Jan 2026 17:31:08 -0800
whiteguyinchina from private IP
Reply #14189811
Lemme guess
The kids will have to invest a lifetime into US treasuries
Wed, 28 Jan 2026 18:15:21 -0800
zerosugar from private IP
Reply #17182007
I think people tend to be disturbed by some of Trump’s financial policies because they reward based on identity rather than need. PPP was another example
where everybody suffered under Covid, but the biggest cash grabs went to large businesses. Some of these large businesses were essential businesses never shut
down by governors and some made more money during Covid. Here is another thing. What about the babies born slightly before or slightly after? Then you know with
the extended child tax credit well he is rewarding my ex friend who had 4 kids with 3 guys and is now in rehab. Of course not everybody who has 4 kids is like
her, but many are. When I would substitute teach, there was a security guard with 8 kids by 5 women. Parenthood should be a sacred relationship not just
automatically rewarded.
Wed, 28 Jan 2026 18:16:36 -0800
zerosugar from private IP
Reply #13006554
The Dems have their identity based rewards too though. Trump has just decided though that certain classes are his supporters and others are not.
Thu, 29 Jan 2026 21:35:42 -0800
marlon from private IP
Reply #18526958
https://finance.yahoo.com/news/donald-trump-sues-irs-treasury-012255473.html
Donald Trump sues the IRS and Treasury for at least $10bn
Stefania Palma and Amy Mackinnon
Updated Thu, January 29, 2026 at 8:51 PM EST 2 min read
Donald Trump and his family have sued the Internal Revenue Service and the Treasury department for at least $10bn over the leak of tax returns, in a move that
pits the US president against his own government.
The lawsuit brought by Trump, his two older sons, Donald Trump Jr and Eric, and the Trump Organization, stems from the disclosure of tax documents that former
IRS contractor and Booz Allen Hamilton employee Charles Littlejohn leaked to the New York Times, ProPublica and other organisations in 2019 and 2020.
The suit claims the leak to “leftist media outlets” caused “reputational and financial harm, public embarrassment, unfairly tarnished their business
reputations, portrayed them in a false light and negatively affected President Trump, and the other Plaintiffs’ public standing”, according to the complaint
filed in Miami federal court on Thursday.
FILE - The exterior of the Internal Revenue Service (IRS) building in Washington, is photographed March 22, 2013. (AP Photo/Susan Walsh, File)
FILE - The exterior of the Internal Revenue Service (IRS) building in Washington, is photographed March 22, 2013. (AP Photo/Susan Walsh, File) · ASSOCIATED
PRESS
The lawsuit marks a highly unusual move by a sitting US president to take legal action against arms of his own government.
The Trumps allege the IRS and Treasury department failed to establish proper safeguards to ensure the security and confidentiality of the tax returns of the US
president and his family.
The Treasury and the IRS did not immediately respond to a request for comment about the suit.
The Treasury department earlier this week said it was cancelling its contracts with the consulting firm Booz Allen as punishment for the leaking of Trump’s
tax returns and the confidential filings of thousands of other wealthy individuals.
In January 2024 Littlejohn was sentenced to five years in prison for leaking Trump’s tax documents and those of other wealthy individuals.
The sentencing judge called it “the biggest heist in IRS history”.
The news website ProPublica published more than 50 stories based on the leaks, which shone a harsh spotlight on the tax strategies of billionaires from Elon
Musk and Jeff Bezos to Warren Buffett and Michael Bloomberg.
As candidate and as president, Trump eschewed long-standing tradition by refusing to release his tax returns, which fuelled media speculation about his
financial standing.
In 2020, the New York Times reported that in 2016, the year he was elected president, Trump paid $750 in federal income tax and that he had paid no income tax
at all in 10 of the prior 15 years after he reported losses that exceeded his earnings.
Additional reporting by Stephen Foley
Sun, 01 Feb 2026 13:50:39 -0800
whiteguyinchina from private IP
Reply #16556693
Man I want his accountant! This guy is a legend!
Replies require login.
