Trump Account: Tax-Free Wealth for Kids | Durham News

A new IRA option for kids under 18 lets parents, grandparents, and even employers contribute up to $5,000 yearly—no job needed. The funds grow tax-deferred until age 18, when they can be converted to a Roth IRA. If done during a low-income year, the conversion tax is minimal, and future growth and withdrawals become completely tax-free. Experts say maxing contributions over 18 years could yield over a million dollars by age 60, with parents covering conversion taxes as gifts. But timing matters: converting while still a dependent could trigger higher taxes, so waiting until the child is fully independent is often best. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/8ef933127b2e6e95