On Dec. 2, the Treasury Department and IRS released a notice announcing upcoming regulations as well as offering guidance on Trump Accounts, which are a new type of individual retirement account for eligible children.
Notice 2025-68 PDF offers an overview of how Trump Accounts function while addressing questions regarding creating initial and rollover Trump Accounts, the $1,000 pilot program contribution as well as other contributions—such as qualified general and section 128 employer contributions—eligible investments, distributions, reporting, and coordination with the rules applicable to other IRA types.
The notice requests comments on various issues related to Trump Accounts.
The Working Families Tax Cuts provides for the establishment of a Trump Account on behalf of every eligible child for whom an election is made, generally by a parent or guardian, and who has not turned 18 prior to the calendar year end where the election is made. Contributions to Trump Accounts cannot be made prior to Jul. 4, 2026.
The federal government will also make a one-time $1,000 pilot program contribution to the Trump Account of each eligible child for whom an election is made. The child must be a US citizen and be born on or after Jan. 1, 2025, through Dec. 31, 2028.
According to the IRS, certain governmental entities and charities might also make qualified general contributions to Trump Accounts, if given to a qualified class of account beneficiaries. Other persons are also able to make contributions up to an aggregate limit of $5,000 per year.
Additionally, a employee's company might also contribute to a Trump Account of the employee or the employee’s dependent up to $2,500 per year—this counts against the $5,000 annual limit—under an employer’s Trump Account contribution program, and the contribution will not count toward the employee’s taxable income.
The yearly contribution limits are indexed to inflation and will adjust beginning after 2027.
The IRS said that the funds in Trump Accounts are supposed to be invested in certain mutual funds or ETFs that track the S&P 500 or another index of mostly US equities.
Generally, amounts cannot be withdrawn from Trump Accounts before Jan. 1 of the calendar year in which the child turns 18 years old. After that point, the account will be generally viewed as a traditional IRA and generally is subject to the same rules as other traditional IRAs.
The notice addresses certain areas of interest to prospective Trump Accounts trustees and to the individuals—including parents and guardians—who would like to create and/or contribute to the accounts.
The IRS is releasing a draft of Form 4547, Trump Account Election(s) to Draft tax forms. When finalized, the new form could be utilized to create a Trump Account and to enroll in the pilot program.