Understanding What Trump IRA is—and What it is Not

Trump's order directing the Treasury to create a TrumpIRA.gov website has generated confusion among some retirement savers. It's important for clients to understand that the order does not create a new type of "Trump IRA". Congress has yet to create a new type of federally-sponsored retirement savings option. What Trump IRA does is provide information about high-quality IRA savings options that individuals can independently open. The website also aims to promote the new saver's match--a program created by the SECURE Act 2.0. Importantly, the new match is available for taxpayers even if they don't owe any federal income tax--qualifying lower-income taxpayers must simply open an IRA and fund it to become eligible for the match. TrumpIRA.gov and the OBBB's new Trump Accounts are also completely separate. Although a Trump account will eventually transform into a traditional IRA once the child-beneficiary turns 18, the law did not create a new type of Trump IRA. All of the rules that govern traditional IRAs will apply, unless Congress acts to change the rules. For more information on establishing an IRA, visit Tax Facts Online. Read More: Link to Q3654. Note: Q is updated.