June 20, 2025
Trump Accounts
Both versions of the House and Senate budget reconciliation bills include the new savings vehicles for minors, the Trump Account. Apparently Trump accounts are intended to introduce more Americans to wealth-building opportunities. But the Tax Code already has about 10 savings inducement provisions and adding yet another just is another layer of complexity While that may be so, these accounts seem to be very complicated, and highly unlikely to be used lower-income families. Perhaps it would have been easier to expand the scope of permissible tax-free distributions using a 529 account that many are familiar with than create yet another set of rules and restrictions. Better yet, Congress should explore creating a Universal Savings Account for all Americans, without so many conditions.
Read More