FleetStar Financial

Beginning July 4, 2026, eligible families have a new long-term savings option to consider.

Trump Accounts are a new type of tax-advantaged savings account designed to encourage long-term retirement savings for eligible children. Depending on a child's eligibility, some newborns may also qualify for a one-time $1,000 federal contribution under the current pilot program.

Like other savings vehicles, Trump Accounts have their own rules governing eligibility, contributions, investments, and withdrawals. They also differ from 529 plans, custodial (UTMA/UGMA) accounts, and Roth IRAs for children, making it important to understand how each option may fit within your family's financial goals.

Choosing the most appropriate savings strategy depends on factors such as education funding priorities, long-term retirement objectives, investment flexibility, and tax considerations.

Our latest article covers:
- Who is eligible for a Trump Account
- How contributions work
- What happens when the child turns 18
- How Trump Accounts compare with other children's savings options

https://fleetstar.com/trump-accounts-a-new-savings-option-for-families/

Did you know you may not have to leave your job to move part of your 401(k)?

Some employer-sponsored retirement plans allow eligible participants to complete an in-service distribution, which may let them transfer a portion of their 401(k) to an IRA while they're still working.

Not every plan offers this option, and eligibility varies. In many cases, participants must be at least age 59½, and the rules are outlined in the plan's Summary Plan Description (SPD).

For those who qualify, an in-service distribution may provide additional flexibility by expanding investment choices, simplifying retirement accounts, or helping coordinate retirement income and tax planning.

Before making a decision, it's important to understand your plan's rules, investment options, fees, and tax considerations.

Curious whether your plan offers this option? Read our latest article to learn how in-service distributions work and what factors to consider before making a decision.

https://fleetstar.com/should-you-move-part-of-your-401k-before-you-retire-understanding-in-service-distributions/

Many retirees know Roth conversions can affect their taxes.

What often comes as a surprise is that a Roth conversion may also affect:

- Social Security taxation
- Medicare premiums through IRMAA
- Tax brackets in the year of conversion

Despite these short-term impacts, Roth conversions can still play an important role in retirement planning. Depending on individual circumstances, they may help create greater tax flexibility and reduce future required minimum distributions (RMDs).

The key is understanding the tradeoffs and timing conversions appropriately within your overall retirement income and tax planning strategy.

The article link is in the comments if you'd like to learn more about what retirees should consider before implementing a Roth conversion strategy.