{
  "id": 2586803,
  "title": "The tax loophole that turns a Trump Account into tax-free millions — do you know how to exploit it?",
  "url": "https://urgent.news/2026/08/22/the-tax-loophole-that-turns-a-trump-account-into-tax-free-millions-do",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-22T12:30:00.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/economy/policy/articles/tax-loophole-turns-trump-account-123000413.html"
  },
  "original_language": "en",
  "account": "The Trump Account, a tax-advantaged investment tool for children, launched in July 2025 under President Donald Trump's 2025 One Big Beautiful Bill Act. Parents, guardians, and authorized adults can open an account for any child under 18 with a Social Security number, while U.S. citizens born in 2025-2028 are eligible for a one-time $1,000 federal contribution. Families can contribute up to $5,000 per year, including $2,500 from an employer. Investment earnings grow tax-deferred, but the account isn't automatically tax-free. After the account holder turns 18, traditional IRA rules apply, allowing the money to be transferred or rolled into another eligible retirement account. One potential strategy is to convert the account to a Roth IRA, which could provide decades of tax-free growth. However, this conversion generates a tax bill on the account's untaxed earnings and gains. To minimize the tax impact, families could convert portions of the account over several low-income years. Additionally, the kiddie tax could limit the benefits of a Roth conversion for children under 18, as more than $2,700 of unearned income may be subject to the parents' tax rate.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}