1) Taxes taken out prior to funding the Trump Account (like a Roth IRA).
2) Taxed at regular income rates upon eligible withdrawal by the recipient.
4 replies (most recent on top)
I should have made it more -
1) If you take into account the employee's pay that is already taxed at federal, and state (sometimes) level = 1x or 2x.
2) Initial contribution by the employee is taxed (like a Roth IRA) = 1x.
3) The recipient upon an eligible withdrawal would be taxed = 1x.
That would make Trump account's taxed at 3x (4x).
Like everything else this c0ward, gr1fter and r@pist does, 530As are a scam. It benefits anyone who has disposable income, then taxes the money twice at the highest conceivable rate. Better to use a kid Roth and UTMA, flipping the gains and interest annually under the latter so long as they’re under the thresholds.
Now, this post will likely be deleted for off-topic. I implore whatever random element does that to reconsider. Some with Schwab will literally lose their jobs because of the 530A nonsense, and it is amazing that the company is doing anything positive as Chuck climbs further into Donald’s orific3s.
How embarrassing for Schwab that Robinhood was chosen by the government to host the 530A accounts the first year.
Whatever, it's free money, stop complaining.
A lot of charities/foundations, entities and corporations, will be matching funds, or donating shares of stock, adopting cities or towns or certain kids' sports organizations to match or donate more to the kids' accounts of those of their employees, towns, cities, states, etc.
https://atr.org/trumpaccounts/
Try joining those who celebrate the light, instead of cursing the darkness.