So Trump Accounts went live over the 4th holiday. Cutting through all the politics, they’re essentially an IRA for kids that doesnt require earned income to contribute. And once the child turns 18, the account in fact becomes a traditional IRA.
One drawback is college financial aid. Virtually every comment from every publication online (at least that Google finds) advise that these Trump accounts will be considered a child’s asset on the FAFSA. But a child’s IRA is specifically excluded. And at the same time, no Treasury/Education Department guidance has been issued about these new accounts, meaning all that advice is in fact just a guess. I dont see why this new account wouldnt receive the same exclusion as IRAs?
It’s starting to feel like a coordinated campaign to supress participation in this new account, universally promoting a downside that doesnt actually exist. Or is that crossing into tin foil hat territory?