Why Trump Accounts Could Completely Upset the Retirement Game—And What It Means for Your IRA Savings.
About withdrawals, Trump Accounts operate according to rules similar to Traditional IRAs: Gains are taxed at the time of withdrawal, with certain exceptions (education, first real estate purchase, etc.).
Conversely, the Roth IRA is distinguished by a total tax exemption on qualified withdrawals after age 59 1/2, making it the most tax-efficient option for long-term retirement planning.
Finally, the flexibility of use varies significantly. Trump Accounts allow withdrawals as early as age 18, but with restrictions. Traditional IRAs, on the other hand, impose an age limit of 59 and a half, on pain of penalty.
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