Brad Campbell and Fred Reish Discuss ‘Trump Baby Accounts’ With Insurance News Net

Benefits and executive compensation partners Brad Campbell and Fred Reish discussed the federal “Trump baby accounts,” which provide a $1,000 tax-deferred investment account for American babies, with Insurance News Net.

The article noted the accounts will give every U.S. citizen born after December 31, 2024 a one-time contribution controlled by the baby’s parents or guardians. It would allow for additional private contributions up to $5,000 per year and is expected to kick off next year.

“What I think a lot of advisors are going to have to do for their individual clients is figure out, is this actually the best vehicle to use for, let's say, education savings, or would a 529 [plan], or something of that nature be more effective?” Campbell explained. “It's not going to be a one-size-fits-all answer as to the best way these Trump accounts can be used."

Reish said that the Internal Revenue Service’s recent turnover may slow guidance regarding the new program and because the accounts have only recently been announced, more details are to be expected.

“It’s almost a year away so we’re going to learn more,” Reish said. "There’s no rush to the finish line here.”