September 2025 Newsletter

Trump Accounts Overview

While we await additional guidance from the IRS, here’s a quick overview of the new Trump Accounts, established under the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025.

Trump Accounts cannot be funded until July 4, 2026.

Purpose: These accounts are intended to help parents and guardians build retirement savings for their children before age 18. Funds may not be withdrawn until the child reaches age 18. Distributions after the age of 18 are taxable to the recipient, and early withdrawals may trigger a 10% penalty—similar to IRA rules—on top of regular income tax.

Pilot Contribution Program: A one-time $1,000 contribution from the federal government will be provided for children born after Dec. 31, 2024, and before Jan. 1, 2029. How do you claim the $1,000? We are still waiting for IRS guidance on how families can notify the government to receive this contribution.

Parent/Guardian Contributions: Up to $5,000 per child, per year, using after-tax dollars. This limit is aggregated across all contributors.

Example: If a grandparent contributes $4,000, only $1,000 remains for parents or others to contribute that year for that child.

These contributions are similar to nondeductible traditional IRA contributions and do not reduce adjusted gross income (AGI).

Employer Contributions:

Employers may contribute up to $2,500 per child, subject to aggregation and nondiscrimination rules. These contributions are treated as an employee benefit expense for the business for tax purposes.

We expect more information from the IRS in the coming months and will provide updates as soon as new guidance is released. For now, keep in mind that Trump Accounts cannot be opened until July 4, 2026.

IRS Payment Modernization:

Sending and Receiving Funds Electronically

An Executive Order (EO) issued March 25, 2025, requires that paper checks for federal disbursements cease by Sept. 30, 2025 and that payments sent to Treasury (including tax payments) should be processed electronically as soon as practicable to the extent permitted by law.

More information is needed on the details of how and when this will be implemented, but it is important to note that paying tax balances due by check and receiving tax refunds by check may soon become obsolete except for specific exceptions.

• More information is needed about the details on their mandate, including how exceptions will be handled and processed.
• For individual tax refunds, we recommend having the refund directly deposited to your bank account. This is faster and more secure than waiting for a physical check.
• Confirm your bank account information with us. The only way to do this is to submit your banking information in the organizer and to review the bank verification form that is provided with your tax return..
• Consider options available now for making electronic payments to the IRS to ease the transition once that deadline is announced. IRS Payments

As we get more clarity on the order, we will provide information on exceptions and instruction on how to pay electronically.

Obtaining A Copy Of Your Tax Return

Has your financial advisor asked for a copy of your tax return, or are you doing some sort of business that requires the submission of the return? Getting a copy of your return is as easy as going back to the email link that you originally received, opening up the tax return, and using the "Forward" link in the return to securely email the return to whomever needs it, or you can save it to your computer (highly recommended) so that you have it for your records.

Please be sure to sign up for the SafeSend portal. Once you sign on, items that are shared between you and our office will be found there. You will easily see tax returns, organizer, payments due, etc.

For anyone who still has documents that were dropped off during tax time, please come by and pick them up. We are scheduling our yearly purge and those documents will go in the purge boxes to be shredded.

Office Hours

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