Personal Finance

New 2026 Trump Accounts (IRC § 530A): What Louisiana Families Need to Know About the $1,000 Government Seed Contribution

As a Louisiana-based CPA with over a decade of experience helping families and businesses navigate complex tax and savings strategies, I’ve been tracking the rollout of the new federal child savings program established under the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025). This legislation created “Trump Accounts” under Internal Revenue Code § 530A, designed to provide long-term savings opportunities for children.

Trump Accounts are a new type of tax-advantaged savings vehicle specifically for minors – Charles Renwick, CPA

With the program’s key milestones approaching—tax filing season for the 2025 returns (due April 15, 2026) and the first government contributions starting July 4, 2026—many Louisiana families are searching for clear, reliable information on how to participate. This post explains the basics, eligibility, opening process, and next steps in a straightforward way.

What Is a Trump Account Under IRC § 530A?

Trump Accounts are a new type of tax-advantaged savings vehicle specifically for minors, similar in concept to 529 college savings plans or custodial Roth IRAs but with distinct rules tied to federal legislation. The official name “Trump Account” comes directly from the statute (26 U.S.C. § 530A), and the program is administered through the U.S. Treasury Department.

The core feature is a one-time $1,000 government seed deposit for eligible children. Beyond that, families can make additional contributions, and the account can grow through qualified investments. Unlike automatic programs, families must take proactive steps to open and claim the seed money—nothing is auto-enrolled.

Who Qualifies for the $1,000 Government Seed?

Eligibility is broad to maximize participation:

Every child born between January 1, 2025, and December 31, 2028, qualifies for the $1,000 seed.
Any minor under age 18 with a valid U.S. Social Security number can establish an account, even if born outside the specified window.
The account is for the benefit of the child (the “beneficiary”), with a parent or guardian acting as custodian.

There is no income limit for opening an account or receiving the seed deposit. This creates a total addressable market of over 70 million potential accounts nationwide.

How to Open a Trump Account (Form 4547 + Tax Return)

The easiest and most common way to open a Trump Account is during tax filing:

File IRS Form 4547 (Election to Establish Trump Account) with your 2025 federal tax return, due April 15, 2026.
Alternatively, use the online portal at trumpaccounts.gov (an official U.S. government site) to make the election.
Once elected, the Treasury Department serves as the default custodian and will deposit the $1,000 seed on July 4, 2026 (no contributions before this date).

Private custodians (e.g., Fidelity, Charles Schwab, Vanguard, Empower) are preparing to accept trustee-to-trustee rollovers starting mid-2026. Many have already published guides and announced matching programs to attract families early.

Contribution Rules and July 4, 2026 Deadline

Annual contribution limit: Up to $5,000 per year from family members (no employer contributions allowed under current guidance).
Government seed: $1,000 one-time deposit for eligible children.
First contributions (including the seed) begin July 4, 2026.
No contributions are permitted before this date, per Treasury/IRS Notice 2025-68 and proposed regulations issued March 2026.

Tax advantages include tax-deferred growth, with qualified distributions potentially tax-free for certain purposes (final rules still evolving).

Investment Options and 0.10% Expense Cap

Investments are tightly regulated to keep the program simple and low-risk:

Permitted assets: Qualifying mutual funds or ETFs that track broad U.S. equity indexes (e.g., S&P 500 or similar).
Expense ratio cap: 0.10% or less for default investments.
No leverage, derivatives, or high-risk strategies allowed.

This structure resembles low-cost index funds in many retirement accounts, making it accessible for long-term growth.

Should You Roll Over to a Private Custodian?

While the Treasury starts as custodian, the program explicitly allows trustee-to-trustee rollovers to private firms once eligible (mid-2026 onward). Reasons families might roll over:

More investment choices (within limits).
Better account management tools or mobile apps.
Integration with existing brokerage accounts.
Employer matches (e.g., Schwab announced a $1,000 match for eligible employees’ children; Empower and others have similar programs).

For a complete, independent guide to the program, rollover procedures, and custodian comparisons, visit gettrumpaccount.com or gettrumpaccounts.com. These resources provide detailed checklists and neutral information.

Louisiana-Specific Tax Considerations

Louisiana generally conforms to federal tax treatment for savings accounts, but families should confirm state tax implications for contributions and distributions. As a local CPA, I recommend reviewing your specific situation—especially if you have multiple children or are coordinating with 529 plans or custodial accounts. Louisiana’s tax code doesn’t currently offer additional state incentives for Trump Accounts, but federal benefits stand alone.

Trump Account FAQ

What is a Trump Account under IRC § 530A?

A Trump Account is a new federal savings program for children created by the One Big Beautiful Bill Act. It includes a $1,000 government seed deposit and allows tax-advantaged growth with strict low-cost investment rules.

Who qualifies for the $1,000 government seed contribution?

Every child born between January 1, 2025, and December 31, 2028, and any minor under age 18 with a valid Social Security number.

How do I open a Trump Account?

The simplest way is to file IRS Form 4547 with your 2025 tax return (due April 15, 2026) or use the official portal at trumpaccounts.gov.

When can contributions start for a Trump Account?

The government seed and all contributions begin on July 4, 2026. No money can be deposited before that date.

Can I roll over a Trump Account to a private custodian like Fidelity or Schwab?

Yes. Starting mid-2026, you can do a trustee-to-trustee rollover to any participating brokerage for more tools and potential employer matches.

Are Trump Accounts available in Louisiana?

Yes. The program is federal, so every Louisiana family can participate. Louisiana follows federal tax treatment for these accounts.

Important Disclaimers & Next Steps

This article is for informational purposes only and does not constitute tax, financial, or legal advice. Rules are based on current IRS guidance (Notice 2025-68 and proposed regulations as of March 2026) and may change.

This website (cmrtax.com) and the linked resources are independent informational sites and are not affiliated with the U.S. Treasury, the IRS, any government agency, the Trump Organization, or Donald J. Trump. The term “Trump Account” is used descriptively to refer to accounts established under 26 U.S.C. § 530A. Always verify the latest details directly from official sources like irs.gov or trumpaccounts.gov, and consult your own tax advisor before taking action.

If you’re a Louisiana family preparing for 2025 taxes or planning child savings, reach out to my firm for personalized guidance on integrating Trump Accounts into your overall strategy.

How Public Sector Funds Supporting Private Schools Can Save Money

The debate over the use of public funds to support private schools is a contentious one, often centered on issues of fairness, access, and efficiency. However, an argument gaining traction is that public sector funds directed towards private schools can actually result in cost savings for the public sector. This perspective is rooted in the notion that private schools operate more efficiently than their public counterparts, thus providing better value for taxpayer dollars.

Efficiency of Private Schools

Private schools are often lauded for their ability to manage resources more effectively. Several factors contribute to this efficiency:

1. Administrative Costs: Private schools typically have leaner administrative structures, which translates to lower overhead costs. They often have more flexibility in hiring practices and salary structures, which can lead to more efficient use of funds.

2. Operational Flexibility: Unlike public schools, private schools are not bound by many of the regulations and bureaucratic constraints that can increase operational costs. This flexibility allows them to adopt innovative teaching methods, integrate new technologies more quickly, and tailor their curricula to better meet students’ needs, often at a lower cost.

3. Accountability and Performance: Private schools often operate under a performance-based model. Parents’ ability to choose where to send their children creates a market dynamic where schools must perform well to attract and retain students. This competition can drive efficiencies and improve educational outcomes, offering better value for money spent.

Cost Savings for the Public Sector

When public funds are allocated to private schools, these efficiencies can translate into significant cost savings for the public sector. Here’s how:

1. Per-Pupil Expenditure: Studies have shown that the per-pupil expenditure in private schools is often lower than in public schools. By funding private school placements, public funds can support more students at a lower overall cost.

2. Infrastructure Savings: Public schools require significant investments in infrastructure and maintenance. Supporting private schools alleviates some of this burden, as the responsibility for facilities and upkeep falls to the private institutions.

3. Reduced Class Sizes and Better Resource Allocation: By redistributing students across both public and private institutions, class sizes in public schools can be reduced. This can lead to better resource allocation and improved educational outcomes, which are more cost-effective in the long run.

Case Studies and Evidence

Several case studies and analyses provide evidence for the cost-saving potential of funding private schools with public money:

– Milwaukee Parental Choice Program (MPCP): Research on the MPCP, a school voucher program in Wisconsin, indicates that the program saves taxpayers money. A study by the Friedman Foundation for Educational Choice found that the MPCP saved Wisconsin nearly $238 million from 1993 to 2011.

– Charter Schools: In many regions, charter schools, which are publicly funded but privately managed, demonstrate similar cost efficiencies. For example, a study by the University of Arkansas found that charter schools in Texas delivered superior student performance at a lower cost compared to traditional public schools.

Conclusion

Allocating public sector funds to support private schools can yield significant savings for the public sector. The inherent efficiencies in private school operations, combined with the competitive pressures of a market-based educational environment, drive these savings. By leveraging the strengths of private institutions, the public sector can deliver high-quality education more cost-effectively, ultimately benefiting taxpayers and students alike.

This approach necessitates careful policy design to ensure equity and access, but the potential for cost savings and improved educational outcomes makes it a compelling consideration in the ongoing debate over public funding for private education.

Clean Vehicle Tax Credits 2023: Guide for New & Used EVs and FCVs Tax Credits

Eligibility for Clean Vehicle Tax Credit in 2023 and Beyond

If you purchase a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV) in 2023 or later, you could qualify for a clean vehicle tax credit. The following summary does not address every situation and the limitations described below are complex so please consult your tax advisor to see if you qualify.

Who Qualifies for the New Vehicle Credit

To be eligible for a credit of up to $7,500 under Internal Revenue Code Section 30D for a new, qualified plug-in EV or FCV, you must:

Purchase the vehicle for personal use, not resale
Primarily use it within the U.S.

Moreover, your modified adjusted gross income (AGI) must not exceed:

$300,000 for married couples filing jointly
$225,000 for heads of households
$150,000 for all other filers

The Inflation Reduction Act of 2022 has amended the eligibility for this credit for vehicles bought from 2023 to 2032.

Credit Amount for New Vehicles

The credit amount for new vehicles is based on when you took delivery of the vehicle, regardless of purchase date.

For vehicles in service from January 1 to April 17, 2023, the credit consists of:

A base amount of $2,500
An additional $417 for vehicles with at least 7 kWh of battery capacity
A further $417 for each kilowatt-hour of battery capacity over 5 kWh
The total credit can reach up to $7,500

Vehicles placed in service from April 18, 2023, must meet new critical mineral and battery component requirements. The credit for these vehicles can be:

$3,750 if the vehicle meets only the critical minerals requirement
$3,750 if the vehicle meets only the battery components requirement
$7,500 if the vehicle meets both requirements

Eligibility for Used Clean Vehicle Tax Credit in 2023 and Beyond

From January 1, 2023, if you purchase a qualified used electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you could be eligible for a used clean vehicle tax credit. This credit amounts to 30% of the sale price, up to a maximum credit of $4,000.

Who Qualifies for the Used Vehicle Credit

To qualify for a credit for purchasing a used, qualified plug-in EV or FCV under Internal Revenue Code Section 25E, you must:

Be an individual who bought the vehicle for personal use, not for resale
Not be the original owner
Not be claimed as a dependent on another person’s tax return
Not have claimed another used clean vehicle tax credit within the three years prior to the purchase date

Moreover, your modified adjusted gross income (AGI) for the used vehicle credit must not exceed:

$150,000 for married couples filing jointly or a surviving spouse
$112,500 for heads of households
$75,000 for all other filers

Qualified Vehicles and Sales

A qualifying vehicle for either credit must:

Have a battery capacity of at least 7 kWh
Have a gross vehicle weight rating under 14,000 pounds
Be manufactured by a qualified company

For the used vehicle credit, the vehicle must also:

Have a sale price of $25,000 or less
Be a model that is at least two years older than the year of purchase
Not have been transferred to a qualified buyer after August 16, 2022
Be purchased from a dealer

How to Claim the Credit

To claim either the new or used clean vehicle credit, complete Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit, and file it with your tax return for the year you took possession of the vehicle. You will need to include the vehicle identification number (VIN) on the form.

Contact CMR Associates today for more information on income tax credits and for tax preparation services or visit IRS.gov for additional information on these specific credits.

Tax Benefits of Real Estate Investing

This blog post was written by Charles Renwick and published by Quicken.

Everyone knows that planning for retirement and investing go hand-in-hand. However, as I’ve written previously, smart planning also considers both the current and long-term tax implications of your investment decisions.

We often talk about 401(k) and Roth IRA tax strategies (and these are great strategies) — however, we must be careful not to overlook the long-term investment prospects and tax benefits associated with real estate investing.

Real estate investing not only offers the potential for appreciation, regular income through rent, and the ability to multiply gains through financial leverage, but of course, it also offers compelling tax benefits!

First, a few caveats about real estate investing

Real estate investing is not necessarily easy, and economic returns are never a sure thing. Also, navigating the intricacies of tax codes and regulations can be intimidating, especially when you’re first getting started. However, compared to most other tax strategies, the majority of the tax benefits associated with real estate investing are not overwhelmingly complex.

While I always recommend you seek individual professional advice, I’ll outline a few of the basic real estate investing tax benefits here in the hope that you can use them to maximize your returns.

Tax benefits of real estate investing

1. Real estate depreciation

As you may have heard, depreciation is a significant tax benefit for real estate investors. But how does depreciation work exactly?

The IRS acknowledges that properties degrade over time and allows investors to deduct a portion of the cost of the property over its “useful life.” For real estate investors, these deductions can really add up.

This might seem obvious, but consider the implications and the benefits.

Primarily, consider the fact that depreciation is a non-cash deduction. This means that you can use the deduction to offset cash income, effectively resulting in tax-free cash income. This is almost as good as it gets in the world of tax benefits.

The deduction becomes even more compelling when you consider that there is no parallel for it in stock market investments. With those investments, you must wait until you sell the investment to take a deduction for the investment cost.

While it is true that maximizing depreciation can be a complex process, the basic concept and the general deduction are not complicated, and you can use this strategy to significantly increase your return on investment.

2. Real estate capital gains tax treatment

Our current tax code is designed not only to fund our national government but also to incentivize behavior. For example, the government wants to encourage long-term investing and has created a system that allows long-term investors to pay less tax!

For real estate investing, understanding this two pronged approach can pay real dividends, especially when it comes to gains on the sale of your investment.

Again, this is not complicated. The profit from selling a property at a higher price than you paid for it is considered capital gains, and if you hold the property for more than a year, these gains are generally either not taxed or taxed at lower long-term capital gains rates. This tax benefit is known as the “Long-Term Capital Gains Tax Benefit.”

Although this benefit is also available for other types of investments (for example, the stock market), this is considerably different than the tax consequences of a 401(k) investment, for example. While all gains on a 401(k) investment are deferred until retirement, the tax rate at retirement is the higher ordinary income tax rate — no matter how long you held those investments.

Best of all, real estate is a natural fit for the long-term capital gains tax benefit, especially if you intend to hold the property and rent it out for a number of years.

3. Business tax deductions for owners of real estate

Owning rental real estate is not only an investment but also a business. This seems obvious, but this concept has real tax-saving implications.

Specifically, because your investment is also a business, you are allowed to deduct ordinary and necessary business expenses associated with your real estatement investment. This means that lots of expenses you might otherwise pay anyway are now tax deductions!

For example, because you need a cell phone to manage your real estate investment, you are entitled to a tax deduction for a portion of the expenses associated with your cell phone — it is an ordinary and necessary business expense.

While there are hundreds of other expenses real estate investors can validly deduct, property taxes and mortgage insurance are the most obvious. These business deductions add up and can result in big tax savings for real estate investors. This is especially compelling because there is no similar concept or deductions available with stock market and 401(k) investing.

Conclusion:

The tax advantages of real estate investing are plentiful and can significantly enhance the profitability of your investments, helping you meet your retirement savings goals.

As with all things related to money, investing, and tax, it is critical to keep good records. Quicken is a great way to keep all of your records clean and organized.

This is especially important when it comes to real estate investing because the extra deductions available to those who keep good records are truly compelling.

As always, I recommend professional advise and assistance because tax laws are complex and frequently change. However, many of the overall tax benefits are obvious and easily accessible to all, so do not be afraid to ask questions and take the next step.

Remember, every investor’s situation is different, so the benefits you enjoy may vary. Nonetheless, understanding the tax benefits associated with real estate investing is an essential first step toward maximizing your investment returns and reaching your retirement goals through real estate investing.

Thriving in the Remote Work Era: Harnessing the Benefits and Managing Staff Productivity

In our increasingly digitized world, the concept of work has evolved. The traditional image of workers seated at their desks in an office from nine to five has been shaken to its core. The rise of remote work, catalyzed by various factors such as technological advances and recent global events, has brought about a revolution in how we perceive and perform work.

However, remote work is not just a temporary shift; it’s an enduring trend. It comes with a host of benefits for both employees and employers but requires unique strategies to effectively manage staff productivity. Let’s delve into these aspects further.

Benefits of Remote Work

Increased Flexibility: One of the most prominent benefits of remote work is the flexibility it offers. Workers have the freedom to set their own schedules, allowing for a better work-life balance.
Improved Productivity: With fewer office distractions and the convenience of designing their own work environment, many remote workers report higher productivity levels.
Expanded Talent Pool: Companies are no longer limited by geographic boundaries. They can hire the best talent regardless of where they are located, leading to more diverse and skilled teams.
Cost Savings: With no need for office space, companies can save on rent, utilities, and maintenance. Employees also save on commuting costs and time.
Reduced Carbon Footprint: Without daily commutes, carbon emissions are significantly reduced, contributing to environmental sustainability.

Managing Staff Productivity in a Remote Setting

While remote work offers immense benefits, it requires effective strategies to ensure productivity and maintain team cohesiveness. Here are some best practices:

Establish Clear Communication Channels: Effective communication is vital in a remote setup. Use collaboration tools and establish protocols for daily check-ins and regular team meetings.
Set Expectations: Clearly outline job responsibilities, project deadlines, and expectations. This helps employees understand what’s expected and helps them manage their workload.
Promote a Results-Oriented Work Environment: Instead of focusing on hours worked, focus on output. This approach not only respects the flexible nature of remote work but also promotes accountability.
Invest in Technology: Provide employees with the necessary tools and technologies to carry out their work effectively. This includes reliable internet access, collaboration tools, and cybersecurity measures.
Support Employee Well-being: Remote work can blur the line between personal and professional life, leading to potential burnout. Encourage employees to take breaks, establish a regular work schedule, and provide mental health resources if needed.
Provide Regular Feedback: A system for regular feedback and recognition helps to keep remote employees motivated and engaged.
Foster a Strong Company Culture: Even without a physical office, it’s crucial to maintain a strong company culture. Regular team-building activities, virtual meetups, and creating a sense of shared purpose can help in building a cohesive remote team.

The shift to remote work is not without its challenges, but with the right strategies and an openness to evolving work dynamics, it can lead to significant advantages. As we move forward, companies embracing remote work will likely find themselves at the forefront of innovation, employee satisfaction, and overall productivity.