Trump Account thoughts

[sigpros]

It seems like a no brainer if you have a little one that qualifies for the seed money especially if you can get the extra $250. I am little torn on if I should do one for my daughter. She is 17 so I can only do it for one year but that would still be $5K I could set back for her. I know a lot of people will say just do a Roth but she doesn't have a job, she is too busy with school and dance. So for the guys on here that know a lot more than me, do you think it is still worth it to do one? I kind of feel that it is since it would be since to potential for $500K to be there when she is 65-67 is very real

 

[Charlie Bob]

What could go wrong ?

 

[Nick87]

This ought to trip some triggers.

 

[jimh406]

From what I understand, a Trump account converts to a traditional IRA at 18. You could convert it to a Roth.

A Roth, if she meets the requirements with income, would make more sense since it grows tax free, and there aren't any required minimum distributions.

I think you'll likely have more control over investments if it's a Roth although I don't know for sure.

 

[sigpros]

From what I understand, a Trump account converts to a traditional IRA at 18. You could convert it to a Roth.

A Roth, if she meets the requirements with income, would make more sense since it grows tax free, and there aren't any required minimum distributions.

I think you'll likely have more control over investments if it's a Roth although I don't know for sure.

Agreed it does convert to a traditional IRA at 18. And if you could roll it over that would be a big plus since her income should be really low as a college student

 

[Exhausted]

It seems like a no brainer if you have a little one that qualifies for the seed money especially if you can get the extra $250. I am little torn on if I should do one for my daughter. She is 17 so I can only do it for one year but that would still be $5K I could set back for her. I know a lot of people will say just do a Roth but she doesn't have a job, she is too busy with school and dance. So for the guys on here that know a lot more than me, do you think it is still worth it to do one? I kind of feel that it is since it would be since to potential for $500K to be there when she is 65-67 is very real

I have three kids. None of them are born in the timeframe to get the initial seed money so I have just kind of disregarded the whole thing. I assume there are other accounts I can open for them that are just as good (even if the account is held in my name until they are 18).

 

[noharleyyet]

This ought to trip some triggers.