President Donald Trump’s new bill introduces Trump accounts for kids, offering a free $1,000 to qualifying children born between 2024 and 2029. Parents can contribute up to $5,000 annually, while employers can add $2,500 without affecting taxable income. However, financial expert Suze Orman raises concerns about the tax implications and recommends alternatives like Roth IRAs.

Orman questions the tax structure of Trump accounts, which may turn into traditional IRAs at 18, subjecting withdrawals to taxes. She suggests opening Roth IRAs for children earning income, providing tax-free withdrawals in the future. Orman advises against solely relying on Trump accounts, urging parents to explore other investment options.

While Orman acknowledges the $1,000 contribution for kids, she emphasizes the need for clarity on tax rules before advocating for Trump accounts. She suggests using the account in addition to brokerage and retirement accounts, but urges careful consideration of alternative investment strategies. CNBC Make It also highlights the benefits of brokerage accounts and Roth IRAs over Trump accounts for long-term investing.

Read more at Yahoo Finance: Want To Invest In a Trump Account for Your Kid? Suze Orman Would Rather See You Do This