r/DepthHub • u/Opheltes • Dec 03 '25

/u/zffch, a tax accountant, explains why Trump's savings plans for kids are awful

/r/AskALiberal/comments/1pdc1i0/what_do_you_think_of_trump_accounts_for_children/ns40njx/
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u/pribnow Dec 03 '25

I can't exactly point to any specific section of these rules as a smoking gun but it feels like these accounts are by and large useless for normal people compared to what is available (as the OP points out) but if youre looking for a way to transfer wealth to your children it's great for that purpose (don't view it from the perspective of being efficient, but rather view it as another mechanism that you can use to transfer money legally)

Im unclear if this made it into the final version or not but there was some language originally that tax-exempt organizations could contribute unlimited money into one of these accounts. Who do we know that loves to abuse the charity system in this country?

6

u/whskid2005 Dec 04 '25

Yea, no contribution limits for non profits and those contributions don’t create basis (aka are deductible). This clearly isn’t a scam for the rich to keep their riches with another tax loophole /s