Webinar Replay

Click Here to Download Summary Below

FINANCIAL EXPERTS NETWORK

Webinar Summary

Beyond OBBBA, Part 2: New Trump-Era Tax Proposals and Planning Opportunities

Speaker: Larry Pon, CPA, EA, USTCP, CFP®, PFS, AEP®

Original Air Date: August 5, 2026

Run Time: Approximately 1 hour, 43 minutes

Topic Area: Federal Tax Planning • Trump Accounts • Individual Deductions • Charitable Planning • Opportunity Zones

Key Takeaways

• Trump Accounts under Internal Revenue Code §530A create a new tax-deferred savings vehicle for eligible children, but advisors must understand contribution limits, authorized-person rules, investment restrictions, basis tracking, and unresolved employer-plan questions. 
• The new deductions for qualified tips, overtime compensation, vehicle-loan interest, and taxpayers age 65 or older require careful review of eligibility, income phaseouts, payroll reporting, and supporting documentation. 
• Higher state and local tax limits and new charitable-giving rules may cause more taxpayers to itemize, making year-end payment timing and contribution bunching more relevant. 
• Qualified Opportunity Zones remain tax-driven investments with significant economic, liquidity, sponsor, compliance, and due-diligence risks. Tax benefits should never replace fundamental investment analysis. 
• Several provisions discussed during the webinar remain subject to proposed regulations, transition rules, or future IRS guidance. Advisors should verify current requirements before implementation. The session covered Trump Accounts, individual deductions, Schedule A changes, charitable substantiation, and the restructured Opportunity Zone program. 

Trump Accounts: A New Savings Vehicle for Children

Larry Pon began with an extensive update on Trump Accounts, also called §530A accounts. These accounts are a new type of traditional individual retirement account established for an eligible child. During the account’s growth period, special rules apply to contributions, investments, and distributions. Once the growth period ends, most traditional IRA rules generally apply. 

An initial Trump Account may generally be established for a child who:

• Is under age 18 at the end of the election year 
• Has a valid Social Security number 
• Has not previously had an initial Trump Account election filed on their behalf  

The account is owned by the child, although an authorized adult manages the election and account while the child is a minor.

Details to Know

• Form 4547 is used to elect to establish the account and, when applicable, request the $1,000 pilot contribution. 
• The order of priority for an individual opening an account generally begins with a legal guardian, followed by a parent, adult sibling, and grandparent. 
• The person signing Form 4547 represents under penalty of perjury that the person is authorized to make the election. 
• Grandparents may contribute, but they should not assume they are authorized to establish the account. 
• Contributions generally could not begin before July 4, 2026. 

Advisors should coordinate contributions among parents, grandparents, employers, and other family members to avoid exceeding the annual limit.

Contributions, Employer Benefits, and the $1,000 Pilot Program

During the growth period, several types of contributions may enter a Trump Account:

• A one-time $1,000 Treasury pilot contribution for an eligible child 
• Qualified general contributions from governments and qualifying charitable organizations 
• Employer contributions 
• Rollover contributions from another Trump Account 
• Contributions from parents, relatives, the child, and other private sources 

The aggregate annual limit for employer contributions and ordinary private contributions is generally $5,000, subject to future inflation adjustments. Employer contributions under §128 are separately limited to $2,500, but they count toward that overall $5,000 limit. 

The $1,000 pilot contribution is available for qualifying children born after December 31, 2024, and before January 1, 2029. The election must be made, and the child must satisfy the applicable citizenship, Social Security number, and qualifying-child requirements. 

Advisor Cautions

Employer funding remains an area requiring careful implementation. The transcript noted unresolved questions involving plan-document requirements, payroll mechanics, employee salary reductions, nondiscrimination, and treatment of S corporation shareholders.

Pon cautioned employers against creating their own informal arrangements based solely on articles or preliminary interpretations. Until additional guidance is available, employers should work with qualified tax counsel, payroll providers, and third-party administrators.

Planning Opportunities

• Ask whether a client’s employer offers a Trump Account contribution or match. 
• Coordinate employer and family contributions so the combined amount does not exceed the applicable limit. 
• Confirm that payroll systems properly identify employer contributions. 
• Treat unresolved areas as unresolved rather than presenting preliminary interpretations as settled law. 

Investment Restrictions, Basis, and Distributions

Trump Accounts are tax-deferred rather than tax-free. During the growth period, contributions generally are not included in the child’s income. However, the source of a contribution determines whether it creates tax basis.

Ordinary private contributions generally create basis. The Treasury pilot contribution, qualified general contributions, and qualifying employer contributions generally do not. Advisors should retain account statements and basis information, particularly if the account is later transferred to a new trustee. 

During the growth period, investments are limited to eligible funds that track indexes composed primarily of U.S. companies and meet statutory requirements. This restriction limits customization compared with a standard IRA or taxable investment account.

Permitted distributions before the end of the growth period are generally limited to:

• Trustee-to-trustee transfers to another Trump Account 
• Certain transfers to an ABLE account 
• Removal of excess contributions 
• Distributions following the beneficiary’s death 

Beginning January 1 of the year the beneficiary turns 18, most traditional IRA rules apply. Distributions may then be subject to income tax and the 10% early-distribution tax unless an exception applies, such as certain higher-education or first-home expenses. 

Planning Implications

Pon suggested evaluating a rollover to a traditional IRA after the growth period to expand investment choices. Partial Roth conversions could then be considered, but only after reviewing:

• The beneficiary’s tax bracket 
• The source of funds used to pay the conversion tax 
• The pro-rata taxation of basis and earnings 
• Financial-aid consequences 
• Kiddie-tax considerations 
• Competing education and retirement goals 

A Roth conversion is taxable income and could negatively affect need-based financial aid. The transcript therefore framed conversion planning as a multi-year decision rather than an automatic next step.

Comparing Trump Accounts, 529 Plans, Roth IRAs, and Custodial Accounts

Pon encouraged advisors to avoid treating these accounts as mutually exclusive. Each serves a different purpose.

Trump Accounts

Potentially useful for:

• Long-term wealth accumulation 
• Receiving the Treasury pilot contribution 
• Receiving employer or philanthropic contributions 
• Beginning retirement-oriented savings before the child earns compensation 

Limitations include restricted investments, limited access before age 18, and eventual taxation of earnings.

529 Plans

Generally better suited to:

• Qualified education expenses 
• Parent or grandparent control 
• Changing beneficiaries 
• Larger contributions 
• Potentially tax-free qualified withdrawals 

Roth IRAs

Generally appropriate once the child has earned income. They can provide tax-free qualified retirement distributions and more flexible investment choices, but annual contributions cannot exceed eligible compensation and statutory limits.

UGMA or UTMA Accounts

These accounts provide flexible taxable investing but generally become the child’s property at the state’s age of termination. Investment income may be subject to the kiddie tax, and custodial assets can have less favorable financial-aid treatment.

Advisor Takeaway

The right answer may involve several accounts serving separate goals. An advisor might use a Trump Account for long-term accumulation, a 529 plan for education, and a Roth IRA once the teen begins earning income.

Qualified Tips and Overtime Deductions

The session reviewed the new deductions for qualified tips and qualified overtime compensation. The IRS reports that eligible tipped workers may deduct up to $25,000 of qualified tips, while eligible taxpayers may deduct up to $12,500 of qualified overtime compensation, or $25,000 for joint filers. These deductions are available to qualifying taxpayers whether or not they itemize, but they are subject to detailed eligibility and phaseout rules. 

Qualified Tips

Pon emphasized that a payment must be voluntary and associated with an occupation in which tipping is customary. Mandatory service charges generally are not treated as voluntary tips.

Advisors working with restaurant, hospitality, salon, transportation, entertainment, or online-content businesses should confirm that:

• Tips are properly classified. 
• Payroll and information-reporting systems are configured correctly. 
• Owners receiving tips for actual tipped services distinguish those amounts from business profits. 
• Compensation is not artificially recharacterized as tips. 
• The taxpayer receives the required information reporting. 

Qualified Overtime

Only qualifying overtime compensation receives the deduction. Pon stressed that not every state-law overtime payment necessarily qualifies under the federal rules.

Employers should separately track:

• Regular compensation 
• The overtime premium 
• The applicable federal overtime basis 
• Required W-2 or information-return reporting 

Advisor Takeaway

Do not rely solely on a year-end W-2 or tax-software result. For affected clients, review pay statements, payroll coding, occupation classification, and the nature of the payment.

Vehicle-Loan Interest Deduction

For 2025 through 2028, qualifying individuals may deduct up to $10,000 of interest paid on a loan used to purchase an eligible new vehicle for personal use. The deduction phases out when modified adjusted gross income exceeds $100,000 for a single filer or $200,000 for joint filers. 

To qualify, the loan generally must:

• Originate after December 31, 2024 
• Finance a new vehicle whose original use begins with the taxpayer 
• Be secured by a lien on the vehicle 
• Relate to a personal-use vehicle rather than a lease 
• Finance a vehicle that underwent final assembly in the United States 

The taxpayer must include the vehicle identification number on the return. A refinancing may continue to qualify to the extent it refinances the eligible original balance. 

Advisor Caution

The transcript included an incorrect reference to a $600,000 income threshold for single filers. Current IRS guidance states that the phaseout begins above $100,000 for single filers and $200,000 for joint filers.

Advisors should verify:

• The vehicle’s final-assembly location 
• The date and purpose of the loan 
• The amount of interest paid 
• The taxpayer’s MAGI 
• Whether refinancing added nonqualifying debt 

Enhanced Deduction for Taxpayers Age 65 and Older

Taxpayers age 65 and older may qualify for an additional $6,000 deduction per eligible person, or up to $12,000 when both spouses qualify and file jointly. The deduction is available to both itemizers and non-itemizers for tax years 2025 through 2028. It begins phasing out when MAGI exceeds $75,000 for an individual or $150,000 for joint filers. 

Pon repeatedly clarified that this is not an exclusion of Social Security benefits. It is a separate deduction based on age, filing status, and income.

Planning Opportunities

Advisors should consider whether discretionary income events could reduce or eliminate the deduction, including:

• Roth conversions 
• Large capital gains 
• Additional IRA withdrawals 
• Required minimum distributions 
• Social Security claiming 
• Business income 
• Gambling winnings 

Potential planning responses may include:

• Spreading Roth conversions across multiple years 
• Harvesting capital losses 
• Using qualified charitable distributions when appropriate 
• Coordinating retirement-plan contributions 
• Delaying discretionary income when doing so is consistent with the broader plan 

The deduction should not dictate the entire financial strategy. It should be included in the marginal-tax analysis along with Medicare premiums, Social Security taxation, future RMDs, state taxes, and estate goals.

Schedule A, SALT, and Charitable-Giving Changes

Pon walked attendees through the expanded Schedule A and emphasized that higher state and local tax limits may cause additional taxpayers to itemize.

For 2026, the transcript identified a SALT limit of $40,400, subject to an income-based reduction for higher-income taxpayers. Advisors should consider whether clients benefit from paying state estimates or property taxes before year-end, while still respecting economic timing and state-law rules.

Charitable Contributions

Beginning in 2026, non-itemizers may generally deduct up to $1,000 of qualifying cash contributions, or $2,000 on a joint return. 

For itemizers, the session emphasized strict documentation requirements:

• Maintain bank records or written evidence for cash contributions. 
• Obtain contemporaneous written acknowledgments for contributions of $250 or more.  
• Confirm that acknowledgments state whether goods or services were provided. 
• Complete Form 8283 when required for noncash gifts. 
• Obtain qualified appraisals for applicable gifts exceeding statutory thresholds. 

Pon specifically warned that cryptocurrency generally does not receive the publicly traded securities exception from qualified-appraisal requirements. Clients donating crypto, real estate, closely held business interests, or other noncash property should obtain specialized tax advice before completing the gift.

Planning Opportunities

• Use donor-advised funds to bunch several years of charitable giving. 
• Donate appreciated publicly traded securities rather than selling them and contributing cash. 
• Coordinate gifting with the client’s itemization year. 
• Obtain acknowledgments and appraisals before filing the return. 
• Consider the effect of large deductions and income events on other tax benefits. 

Opportunity Zones: Tax Benefits Do Not Replace Due Diligence

The webinar concluded with the restructured Qualified Opportunity Zone program.

Opportunity Zones are intended to encourage investment in designated low-income communities through Qualified Opportunity Funds. The IRS describes the program as an economic-development incentive that may provide temporary gain deferral and other tax benefits. 

Pon distinguished between the original Opportunity Zone program and the new program beginning in 2027. Investors with gains recognized during the latter portion of 2026 may fall within the 180-day investment window for funds formed under the new cycle, but exact timing and transition rules require careful review.

He also reminded advisors that gains deferred under the original program are generally scheduled for recognition in 2026. Clients need sufficient liquidity to pay the resulting tax.

Investment Due Diligence

Before recommending or facilitating an Opportunity Zone investment, advisors should examine:

• Whether the investment would be attractive without the tax benefit 
• Sponsor experience and prior performance 
• Development and construction risk 
• Fees and carried interests 
• Expected cash-flow timing 
• Liquidity and holding-period requirements 
• Capital-call provisions 
• Local economic conditions 
• Compliance with the 90% asset test 
• Substantial-improvement requirements 
• Reporting and audit procedures 
• Exit assumptions 

Pon noted that Opportunity Zone projects may produce little income during initial development or renovation. They may therefore be inappropriate for investors seeking immediate cash flow.

The IRS has issued transition guidance for the new Opportunity Zone framework and guidance on the designation of census tracts effective January 1, 2027. 

Additional 2026 Planning Reminders

The session briefly highlighted several other planning developments:

• Original Opportunity Zone gains deferred to 2026 should be incorporated into estimated-tax and liquidity planning. 
• Certain highly compensated participants making catch-up contributions may be required to make those contributions on a Roth basis under SECURE 2.0. 
• The ABLE eligibility age expanded, creating potential opportunities for individuals whose disability began later in life. 
• Non-itemizer charitable deductions may renew the tax incentive for smaller cash gifts. 
• Charitable bunching may help taxpayers navigate the standard deduction and new limitations. 
• Disaster-loss rules differ depending on whether property is personal, income-producing, or affected by a federally or state-declared disaster. 

These areas require individualized analysis because effective dates, definitions, and state conformity may vary.

Client Conversation: Practical Application

• Identify children eligible for Trump Accounts and clarify who is authorized to establish the account. 
• Coordinate all family and employer contributions to prevent excess funding. 
• Compare Trump Accounts with 529 plans, custodial accounts, and Roth IRAs based on the family’s actual objectives. 
• Review payroll records for clients claiming qualified tips or overtime deductions. 
• Verify vehicle eligibility and MAGI before projecting a car-loan interest deduction. 
• Include the enhanced senior deduction in Roth-conversion and capital-gain planning. 
• Revisit whether higher SALT limits make itemizing more likely. 
• Obtain charitable acknowledgments, Form 8283 information, and appraisals before filing. 
• Identify clients with original Opportunity Zone deferrals coming due in 2026. 
• Evaluate every Opportunity Zone investment on its economics, not merely its tax incentives. 
• Distinguish current law from proposed regulations and unresolved guidance. 

Sources & References

Internal Revenue Service — Trump Accounts
https://www.irs.gov/trumpaccounts

Internal Revenue Service — Instructions for Form 4547, Trump Account Elections
https://www.irs.gov/instructions/i4547

Internal Revenue Service — Notice 2025-68, Guidance on Trump Accounts
https://www.irs.gov/pub/irs-drop/n-25-68.pdf

Internal Revenue Service — New and Enhanced Deductions for Individuals
https://www.irs.gov/newsroom/new-and-enhanced-deductions-for-individuals

Internal Revenue Service — Working Families Tax Cuts: Deductions for Workers and Seniors
https://www.irs.gov/newsroom/working-families-tax-cuts-tax-deductions-for-working-americans-and-seniors

Internal Revenue Service — Schedule 1-A, Additional Deductions
https://www.irs.gov/newsroom/schedule-1-a-additional-deductions-what-to-know-about-the-new-form

Internal Revenue Service — Qualified Overtime Compensation Questions and Answers
https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation

Internal Revenue Service — Car-Loan Interest Guidance
https://www.irs.gov/newsroom/treasury-irs-provide-guidance-on-the-new-deduction-for-car-loan-interest-under-the-one-big-beautiful-bill

Internal Revenue Service — Charitable Contributions
https://www.irs.gov/taxtopics/tc506

Internal Revenue Service — Publication 526, Charitable Contributions
https://www.irs.gov/publications/p526

Internal Revenue Service — Opportunity Zones
https://www.irs.gov/credits-deductions/businesses/opportunity-zones

Internal Revenue Service — Revenue Procedure 2026-14, Opportunity Zone Nominations
https://www.irs.gov/pub/irs-drop/rp-26-14.pdf

Internal Revenue Service — Notice 2026-40, Transitional Opportunity Zone Guidance
https://www.irs.gov/irb/2026-28_IRB

Compliance Note: This summary is provided for educational purposes only and does not constitute individualized tax, legal, investment, payroll, employee-benefit, or financial-aid advice. Several provisions discussed remain subject to proposed regulations, transition relief, state conformity rules, or future administrative guidance. Advisors should verify current law and coordinate implementation with qualified tax, legal, payroll, and investment professionals.