{"version":"1.0","type":"rich","provider_name":"Acast","provider_url":"https://acast.com","height":250,"width":700,"html":"<iframe src=\"https://embed.acast.com/$/69c148bb1a160b44db9c8fcc/6a8f86f1872783b8005dd0cc?\" frameBorder=\"0\" width=\"700\" height=\"250\"></iframe>","title":"Roth IRA vs. Trump Account: Which is better for kids?","description":"<p><strong>1046. Did your teenager earn money from a summer or part-time job? Laura answers a listener’s question about two tax-advantaged savings accounts for minors: the Roth IRA and the new Trump Account. You’ll learn how both accounts work and where working teens or their parents should put their hard-earned dollars first.</strong></p><p><strong>Key Takeaways:</strong></p><ul><li>Minors can have a custodial Roth IRA when they earn income from W-2 employment or self-employment and contribute up to $7,500 or 100% of earned income, whichever is less.</li><li>A Section 530A Trump Account can be opened for kids under 18 regardless of whether they earn income, and contributions can total $5,000 annually.</li><li>A Roth IRA offers tax-free growth and tax-free withdrawals in retirement.</li><li>A Trump Account grows tax-deferred, and once the owner turns 18, it becomes a traditional IRA, with distributions taxed (except for contributions that were previously taxed).</li><li>Parents or relatives do not need to use a minor’s money to fund a Roth IRA; they can match or make an eligible contribution for the minor.</li><li>After age 18, doing a Roth conversion on an old Trump Account is a wise move to lock in tax-free growth forever.</li><li>Eligible working minors can max out a Custodial Roth IRA up to their earnings limit and receive up to $5,000 in a Trump Account from family, friends, or employers in the same tax year.</li></ul><p><strong>Discover more from Money Girl!</strong></p><p><a href=\"https://www.facebook.com/MoneyGirlQDT\" rel=\"noopener noreferrer\" target=\"_blank\">Facebook</a></p><p><a href=\"https://www.quickanddirtytips.com/newsletters/moneygirl\" rel=\"noopener noreferrer\" target=\"_blank\">Newsletter</a></p><p>Transcripts available at <a href=\"https://www.quickanddirtytips.com/transcripts/money-girl/\" rel=\"noopener noreferrer\" target=\"_blank\">QuickandDirtyTips.com</a>.</p><p>Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.</p>","author_name":"QuickAndDirtyTips.com"}