Where do homeless accountants live? In tax shelters, of course! 🛖 And why are they so good looking? They’ve got great figures. 💃 It’s OK, we deserve those thrown tomatoes. 🍅
One tidbit in 2025’s Big Beautiful Bill was the creation of Trump Accounts. These accounts aim to help kids save for their futures, but tax experts say it’s a hot paperwork mess. 📑🥴 Let’s look at how they’ll impact average Americans.
Here’s Five Fast Facts on Trump accounts and your taxes:
- 🤸 For the Kids - According to the Big Beautiful Bill, each Trump Account will be seeded with $1,000 of Uncle Sam’s money. Every citizen born between 2025 through 2028 will get one. They’ll track the stock market just like retirement accounts.
- ➕ Nice Add-On - If you want to throw in some of your own money to fatten the pot, go for it. Employers, nonprofit organizations, and even your relatives can, too. However, this is where it gets pretty messy…
- 🎁 Gift Horse - Right now, any contribution to a Trump Account is a taxable gift. That means that whoever contributes will need to fill out IRS Form 709. This bad boy is a 10-page document which can take up to six hours to complete! And because it’s not widely used, you won’t even find it on TurboTax.
- 💵 Very Taxing - Under current law, you can gift up to $19,000 without worrying about Form 709. However, the Trump Accounts are a unique animal. For a cash gift to be tax-exempt, the recipient gets access to the money right away. But you can’t withdraw from a Trump Account until age 18. Whether you put a few bucks or max out the $5,000 annual cap, every contribution needs to be declared.
- 📺 Is This a Rerun? - We’ve actually seen this episode before. When 529 college savings accounts hit the scene, this same problem came up. Congress decided to exempt 529 plans from the complicated tax rules. Experts say they’ll need to do something similar with the Trump Accounts to smooth things over.
🔥Bottom line: Putting money away for your kids' future is a good thing. But until the mud clears up on these accounts, you may wanna park your investment somewhere else. Looking to boost your paycheck in 2026? You’ll need to brush up on a few key skills to make it happen. Want the cheat sheet? Read this article!
Will you invest in a new Trump account?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
BTW, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
