Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show.

Congress created a brand new investment account for kids called Trump Accounts, and the questions from optometrists have been flowing in. In this episode, we break down exactly what these accounts are, how they work, who can contribute, and - most importantly - whether they actually add anything new to the lineup of options you already have for investing on behalf of your kids.

What You'll Learn

What Trump Accounts are and how they work
Who can contribute, how much, and when
How contributions are taxed (and why the after-tax structure matters)
How employer contributions work - and potential hurdles for practice owners contributing to their own kids' accounts
What happens when the child turns 18
How Trump Accounts compare to existing options like UTMA/UGMA accounts, 529s, and custodial Roth IRAs
The best use cases for ODs, including the $1,000 federal seed money and Roth conversion planning

Key Takeaway

Trump Accounts aren't a game-changer, but they can definitely be a benefit for our kids. The biggest win is the $1,000 seed money for eligible kids and the renewed attention on starting retirement savings early. They don't replace anything already in your toolkit - think of them as one more option alongside 529s, custodial accounts, and Roth IRAs.

Episode Chapters

[00:00] Introduction
[01:00] What are Trump Accounts?
[02:00] When they're available and how to open one
[02:30] Who can contribute and contribution limits
[03:00] Why contributions are after-tax (and why that matters)
[05:00] Employer contributions through your practice
[06:00] Can practice owners contribute to their own kids' accounts?
[07:30] Government and nonprofit contributions & the $1,000 pilot program
[08:30] Investment options inside Trump Accounts
[09:00] What happens when the child turns 18
[10:00] Withdrawal restrictions and the ABLE account exception
[10:30] How Trump Accounts compare to existing options for kids
[14:30] Best use cases for optometrists
[17:00] Final thoughts: The real positive of Trump Accounts

Resources Mentioned

IRS Form 4547
trumpaccounts.gov
Submit podcast questions: www.optometrywealth.com/podcastquestion
Contact: podcast@optometrywealth.com

Want a more proactive approach to your planning?

You can schedule a no-commitment introductory call to discuss what's on your mind financially and learn how we help optometrists navigate those same decisions nationwide.

👉 Schedule an introductory call

The Optometry Money Podcast is dedicated to helping optometrists make better decisions around their money, careers, and practices. The show is hosted by Evon Mendrin, CFP®, CSLP®, owner of Optometry Wealth Advisors, a financial planning firm just for optometrists nationwide.