Locator: 51123INVESTING.
Trump Accounts: https://www.trumpaccounts.gov/.
Query:
Can one open a Trump Account at Schwab or must it be done through the Trump Account app?
Reply:
IRS Form
How to prove priority:
My take on the Trump accounts:
- traditional IRAs for children and others under the age of 18 years old
- which means withdrawals are taxed as "regular income"
- these are not like Roth IRAs
- free money from government, major corporations, and parents' employers in some cases
- very confusing and strict tax-related guidelines
- can only start the process through the government (www.TrumpAccounts.gov)
- except for the "free money" which is very, very limited and highly regulated, there remain better options, particularly 529 plans
My hunch: unless these accounts open automatically upon the birth of a child, these accounts will be hard to sell.
The "529 plans: are a much better alternative.
They can be redeemed tax-free (traditional IRAs, upon redemption are taxed as ordinary income). Yes, they can only be redeemed for educational purposes, but money is fungible, the owner of the 529 plan can re-name the recipient at any time for any reason for an indefinite period, and, finally, "education" is very broadly defined. And 529 plans can range from very conservative to very aggressive plans. While we're at it:
