I've had several questions recently about the new Trump Accounts, particularly whether contributions are deductible and how these accounts are taxed. The biggest takeaway is that private contributions generally are not deductible, meaning they typically will not reduce AGI or lower your current-year tax bill. From a tax perspective, Trump Accounts are best thought of as a special type of traditional IRA-style account for children. Private contributions are generally made with after-tax dollars, earnings generally grow tax deferred, and after the child's growth period ends, the account generally follows traditional IRA rules, subject to several unique provisions. One feature that has generated a lot of interest is the potential for a one-time $1,000 government seed contribution for eligible children, subject to the requirements of the new law. In addition, several private organizations and philanthropists have announced programs to provide additional contributions for certain eligible children, including some children who may not qualify for the $1,000 government contribution. Eligibility for these programs varies and is separate from the federal tax rules. A few other noteworthy rules: - Contributions generally cannot begin before July 4, 2026. - Distributions are generally prohibited before age 18 except in limited circumstances. - Investments are restricted to certain low-cost broad-market mutual funds and ETFs. - Special basis rules apply depending on the source of contributions. The law is still very new, and additional IRS guidance is expected. But for now, the most important takeaway is this: Trump Accounts are special traditional IRA-type accounts for children. They generally do not provide a current-year deduction, but they do offer tax-deferred growth and may provide seed contributions for eligible families through both government and private programs. As more guidance becomes available, I'll continue to share updates with the community.

Hey all I was wondering if anyone had some thoughts on Trump Account and what would be the benefits to contribute via S-Corp (NYC) with two owner-shareholder employees. Would that help lower taxes if it's contributed directly by employer and is that allowed? More details on my questions: 1. Can I contribute up to the annual federal gift tax exclusion amount (currently $19,000 per donor, per child) to my child's account (such as a 529 plan) and have my S corporation make a separate employer contribution of up to $5,000 to the child's Trump Account via two employees? Or would the employer contribution count toward the annual gift tax exclusion? 2. Can an S corporation with only two employee-shareholders (husband and wife, both >2% shareholders) make $2,500 employer contributions for each employee's child is allowed? Thank you!

I have a single member LLC pass through umbrella that holds all my individual STR LLCs. Can I pay myself as an employee so that I can contribute 72k after tax and do a mega back door Roth? Is it true I don’t need a C or S corp to do this? A friend does this using mysolo401k.net. He says I have to pay payroll taxes at 15%. I’m assuming that’s 15% of the 72k? He has the employer contribute 72k and the employee contribute 0

I’ve been running the numbers on my entity structure, and I’m starting to wonder if the S-Corp election is actually costing me money compared to a simple Sole Proprietorship in New York City. 1. Since New York City doesn't recognize the S-Corp election, I'm getting hit with the General Corporation Tax (GCT) of roughly 8.85%. If I were a Sole Proprietor, I’d be looking at the Unincorporated Business Tax (UBT) of 4%—or potentially 0% if I qualify for the Real Estate Safe Harbor (which is my case). 2. I know the main selling point of the S-Corp is saving the 15.3% Self-Employment tax. For "high" earner, we are hitting the Social Security wage cap anyway, the S-Corp really only saves the Medicare portion (~3.8%) on the remaining business profit, after the "reasonable" salary. 3. Admin overhead of payroll processing, corporate tax return fees, and unemployment insurance. 4. Solo 401k is eligible for both S-Corp and Sole Proprietorship, but the S-Corp strategy is all about minimizing W-2 salary to save on self-employment taxes, it reduces my ability to make pre-tax employer 401(k) contributions, so I have to compensate with the mega backdoor Roth (after-tax to roth). Sole Prop would simply use 20% of the net profits, so a much much higher pre-tax contribution. 5. Sole Prop pay Social Security tax on the entire net profit (up to the annual cap) and S-Corp could potentially be limited to the W-2 Wages of the "reasonable" salary. Any thoughts on the winner? - Sole Prop Wins on NYC City tax - Sole Prop Wins on admin costs and simplicity - Sole Prop Wins on 401(k) Deduction - Sole Prop Winos on Social Security benefits for retirement - S-Corp Wins on Audit risks - S-Corp (partially) Wins on Self-Employment taxes Thanks.

Hi, I’d like to get some leads or recommendations for oil n gas investments before end of this year. Please suggest the min investment, final deadline and expected ROI. Also, should I open an LLC for this investment?