近距离内射合集

Today鈥檚 column covers two unrelated topics: how the federal deficit is progressing and how to set up a Trump account.

Let鈥檚 start with the bad news 鈥� the deficit. The federal government has a fiscal year that ends Sept. 30.

Through the end of July, 10 months into the fiscal year, the deficit for the year was $1.8 trillion. This is up $169 billion from last year at the same time.

The Congressional Budget Office estimates that the full-year deficit will be about $2.1 trillion.

Why is the current year鈥檚 deficit higher than last year? The biggest reason is that interest on the national debt went up by $117 billion.

Inflation creates problems for families, but also for the government. This is one reason the Federal Reserve has targeted inflation in its rate-setting policy.

Social Security expenditures were up by $70 billion. Medicare was up by $66 billion and Medicaid up by $45 billion.

We have an aging population. We have low birth rates. By 2030, deaths are expected to exceed births in our country.

Department of Defense expenditures were up $39 billion. Veterans Affairs costs rose by $34 billion, Housing and Urban Development costs by $17 billion and Small Business Administration costs by $10 billion.

Some departments saw a decrease in expenditures. The Education Department spent $79 billion less, the Environmental Protection Agency $20 billion less, and Commerce $9 billion less.

Many of the departments or programs that saw increases are on autopilot 鈥� we call these entitlements because anyone meeting the requirements is entitled to a benefit.

Where decision-making is involved, we spent more on defense and less on education and the environment.

I have no comments, either favorable or unfavorable, on any of this. I do suggest that voters have a coming election to make their own comments.

Changing direction, let鈥檚 talk about the procedural issues for Trump accounts. These accounts are for children under age 18.

The basic rules are that the accounts have a 鈥済rowth period鈥� where contributions may be made and the accounts can grow tax-free.

Investments are limited to funds 鈥� mutual funds or ETFs 鈥� that invest in a portfolio that is tied to an index.

On Dec. 31 of the year before the calendar year when the child turns 18, the growth period ends. The account then functions like an IRA.

The federal government will provide a 鈥減ilot鈥� investment of $1,000 for a child born in 2025 through 2028.

A Trump account is established by filing IRS Form 4547. The easiest way to file this form is electronically with your annual tax return.

You may also file Form 4547 on paper. This is risky. IRS personnel losses have created havoc with paper-filed items.

Form 4547 includes basic information that shows a child qualifies to establish an account.

The child must be a U.S. citizen and have a Social Security number. A qualifying individual 鈥� generally a parent 鈥� must establish the account.

Part III of the form is completed to request a pilot contribution of $1,000 from the Treasury. Again, this is only for children born in 2025 through 2028.

Contributions can come from five sources. One is the pilot contribution. The second is from a government source (e.g., a state or tribal government) or a public charity.

The third is from an employer. Employer contributions are limited to $2,500 and must be made to a broad group of employees on a nondiscriminatory basis.

The fourth is a rollover from another Trump account. The fifth is a contribution from other people, such as parents, grandparents, aunts and uncles, and so on.

Total annual contributions from all sources are capped at $5,000. The Treasury pilot gift is excluded from this limit.

No tax basis is established for the first three contribution sources. A carryover basis applies for Trump-to-Trump rollovers. Tax basis is established for the fifth category.

During the growth period, it is essentially impossible to get any distributions from the account.

Let鈥檚 say a child is born on Sept. 6, 2026. The growth period ends Dec. 31, 2043.

The account then becomes like a traditional IRA. Penalties apply for most distributions before age 59-1/2.

In another column, I will compare the Trump account with several other options that can be used to build an investment fund for a child.

Jim Hamill is the director of tax practice at Reynolds, Hix & Co. in Albuquerque. He can be reached at jimhamill@rhcocpa.com.