Why Trump Accounts Could Completely Upset the Retirement Game—And What It Means for Your IRA Savings.
Contributions, as in a Roth IRA, are made on an after-tax basis and are not deductible.
Funds grow tax-free, but unlike a Roth, withdrawals are generally taxed like a Traditional IRA, with certain exceptions (higher education, real estate purchases, etc.).
From age 18, the account holder can make withdrawals, which then follow the usual IRA tax rules.
Before the age of 59 and a half, penalties of 10% apply on earnings in the event of non-qualified withdrawals, except in the case of use for expenses provided for in the IRA early withdrawal code.
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