Trump Accounts create a 'legal backdoor' for Roth IRA wealth, tax attorney says

Key points

• watch now Families have signed up nearly 6 million children for Trump Accounts, set to launch next month.
• For some, claiming the initial grants — worth up to $1,000 — is the draw.
• But even kids who aren't eligible for the "free money" can leverage the accounts with a strategy typically used by older investors to kickstart future ta free growth.
• Trump Accounts, also known as 530A accounts, are a new type of ta advantaged savings and investment account for kids — and, based on the way they're structured, offer a way for these young investors to build savings in a Roth individual retirement account, according to financial planners.
• Roth IRAs are powerful savings vehicles in which investment growth and future withdrawals in retirement are generally ta free, with some exceptions, experts said.