A new type of retirement savings vehicle under IRC Sec. 530A, commonly known as “Trump accounts” for eligible children was created under the 2025 Act. Trump accounts can be thought of as individual retirement accounts (IRAs) with training wheels: IRA-type accounts subject to a specific statutory and administrative framework designed to promote long-term savings. During the account’s growth period, special rules under IRC Sec. 530A apply. Once the growth period ends, most of those special rules no longer apply, and the account is subject to the general provisions of IRC Sec. 408 governing traditional IRAs.
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