A Trump Account (530A account) requires no earned income for a child under 18, so growth compounds tax-deferred for decades before it's taxed as ordinary income on withdrawal, up to 37% versus the 15% long-term capital gains rate on a typical brokerage account. For US expat families, that trade-off is worth understanding before funding one for a child living abroad.

The account's only investment option is SPYM, a low-cost S&P 500 index fund, so there's no fund research and no rebalancing required. Combined with the $1,000 federal seed deposit, it's designed to be opened, funded, and left alone.

Watch the full episode with Christie DuChateau, EA, of BNC Tax and Arielle Tucker of Connected Financial Planning for what US expat parents need to know about eligibility, funding, and opening a Trump Account from abroad.

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