If you have a toddler like I do, you need to be thinking about the Trump accounts.

@build.my.mil

20.0K followers · usually 0 views a post

Views

59.5K

Likes

2.8K

Comments

263

1.1K

SoundTikTok sound · original sound - build.my.mil

Promoted product

Trump Accounts

Why it worked

The video leverages the creator's authority as a CPA to provide 'insider' financial information that feels urgent and exclusive, effectively positioning a specific financial product as a solution to a common parental concern.

Summary

A CPA explains a new IRS memo regarding the tax benefits of converting funds from a 'Trump account' (a specific type of custodial account) into a Roth IRA for children. She emphasizes the importance of prioritizing personal retirement savings and 529 plans before utilizing this strategy.

Structure

1Introduction to Trump accounts for toddlers
2Explanation of the tax-efficient conversion strategy
3Numerical example of potential tax savings
4Disclaimer on prioritizing personal retirement and 529s
5Final verdict and call to research

Product placement

The video discusses 'Trump accounts' (a specific financial product) as the primary subject.

Call to action

I encourage all of you to do your own research and look into it.

On-screen text

TRUMP ACCOUNTS FOR KIDS ROTH CONVERSIONS?! IF YOU HAVE A TODDLER LIKE I DO, YOU NEED TO BE THINKING ABOUT THE TRUMP ACCOUNTS. I'M A CPA KID BORN IN 2024 NOT ELIGIBLE FOR THE EXTRA $1000 I PAY A LOT OF ATTENTION TO TAX CODES PREVIOUSLY: GLORIFIED IRA ACTUALLY: AFTER TAX MONEY IN, GROWS, PAY TAXES ON IT IRS MEMO: YOU CAN CONVERT TRUMP ACCOUNT FUNDS INTO A ROTH IRA ROTH IRAs GROW TAX FREE MAX CONTRIBUTIONS: $5,000/YEAR $60,000 CONTRIBUTIONS $40,000 GAIN $100,000 TOTAL IRS MEMO: ONLY PAY TAX ON THE GAINS ONLY PAYING TAXES ON $40,000 $100,000 ROTH IRA GROW TAX FREE INTO RETIREMENT OPENING JULY 5TH DO YOUR OWN RESEARCH DON'T INVEST FOR YOUR KID UNLESS YOU SECURED YOUR OWN RETIREMENT FIRST PUT YOUR MASK ON FIRST STILL BELIEVE IN 529 ACCOUNTS CONSIDER ME CONVERTED

Original caption

I feel like no one has talked about this yet! #toddlermom #PersonalFinance #LearnOnTikTok

More from @build.my.mil

More breakout videos from this creator.

Transcript

If you have a toddler like I do, you need to be thinking about the Trump accounts. And I'm going to be honest, I wrote them off for a very long time because I'm a CPA and also my kid was born in 2024, so they're not eligible for the extra thousand dollars. However, because I'm a CPA, I pay a lot of attention to tax codes. Previously, the Trump accounts were marketed as a glorified IRA account. Actually, a little bit different. You put after tax money in, it grows, and then just like a pre tax account, you have to pay taxes on it. But I found out something so interesting today. See, the IRS came out with a memo that says you can convert Trump account funds into a Roth IRA. And as we all know, Roth IRAs grow tax free. So the Trump account max contributions every year are $5,000. And let's say you put in enough to contribute $60,000, and over those 12 years, it actually grows to $100,000. So $60,000 worth of contributions, $40,000 of gain, your account's $100,000. So this IRS memo says you only have to pay tax on the gains. And so that means you're only paying taxes on $40,000 instead of $100,000. And now you're giving your kid a $100,000 Roth IRA that will now grow tax free into retirement. And that, that key piece made me wanna open a Trump account for my kid. So I'm probably gonna do that. They're opening the Trump accounts on July 5th, so this is very timely, and I encourage all of you to do your own research and look into it. I'm a CPA, I am literally on the IRS website reading stuff. But I feel like there's going to start being a lot of people talking about this. However, I think it's really important to note that you should not be investing for your kid unless you have secured your own retirement first. Make sure you are putting your mask on before you put someone else's mask on. And I still really believe in 529 accounts. I'm making sure our 529 account for our daughter is fully funded before we put money into a Trump account. Consider me converted, honestly. Just on the accounts. Nothing else.