This thing is new and I'm a little fuzzy on how these new accounts work. Maybe others are more knowledgeable on this & are willing to chime in.
As I understand it, these accounts will be a non-issue on 2025 returns, unless making the election to receive the $1-k for the bene born '25 thru '28 per form 4547.
Also the child must be expected to be your qualifying child in 2026, although you may file the election either with the 2025 return or on paper later.
Anyone can contribute to the child's account - but there is a $5-k max per child per year.
No tax deduction for contributions. Ordinary income on investment gains to the child when withdrawals are made at age 18 or later.
Do I have these points right? Thanks for replies.
As I understand it, these accounts will be a non-issue on 2025 returns, unless making the election to receive the $1-k for the bene born '25 thru '28 per form 4547.
Also the child must be expected to be your qualifying child in 2026, although you may file the election either with the 2025 return or on paper later.
Anyone can contribute to the child's account - but there is a $5-k max per child per year.
No tax deduction for contributions. Ordinary income on investment gains to the child when withdrawals are made at age 18 or later.
Do I have these points right? Thanks for replies.