Question

Is it better to make a Trump Account contribution or give cash directly to my child?

Answer

These aren’t mutually exclusive, but they serve different goals. Trump Account contributions build long-term, tax-deferred retirement wealth accessible at age 18, while direct cash gifts provide immediate flexibility. However, both types of transfers count toward the same $19,000 annual exclusion threshold per recipient, so your total giving to each beneficiary must be coordinated to preserve safe harbor treatment for the Trump Account contribution.

About Mercer Advisors

We exist so you don’t have to worry about money. For more than 40 years, we’ve taken the sophisticated, time-tested approach that many ultra-high net worth individuals use to help manage their financial lives and made it accessible to more families.

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