Tax Less LLC

🚨 NEW $1,000 “Trump Account” for Children Born 2025–2028

The IRS has released guidance on a new retirement account designed specifically for eligible children.

Here’s what parents need to know:

✅ Eligible children must be U.S. citizens
✅ Born between January 1, 2025 and December 31, 2028
✅ A parent or guardian must make an election

💰 The federal government will make a one-time $1,000 pilot contribution to the child’s account.

Important details:

• This is NOT a stimulus check
• It is a tax-advantaged IRA for minors
• Funds must be invested in S&P 500 or U.S. equity index funds
• No withdrawals before the year the child turns 18
• Contributions cannot begin before July 4, 2026
• Form 4547 will be required to enroll

Families may also contribute up to $5,000 per year, and employers can contribute up to $2,500 per year (subject to limits).

And let me say this — if you don’t already have an IRA set up for your older kids, don’t let the babies miss out. This is a great way to get started. No, $1,000 isn’t a million dollars… but it’s something. And something invested early is always better than nothing sitting on the sidelines.

Used correctly, this could be a powerful long-term wealth building tool.

If you have a child born in that window and want to understand how this fits into your tax or financial plan, reach out. I’ll keep everyone updated as final regulations are released.

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