Federal Government Issues Guidance on Trump Accounts
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New Details About the Investment Accounts for Newborns a.k.a. Trump Accounts
The Federal government has released information on how “Trump Accounts” work. The Treasury Department and the Internal Revenue Service are addressing certain initial questions about creating initial and rollover accounts, which are a new type of IRA.
Jointly, the Department of the Treasury and the Internal Revenue Service issued Notice 2025-68 on Tuesday, December 2, 2025, establishing the first detailed framework for the tax-advantaged savings vehicles. Notice 2025-68 covers the $1,000 pilot program contribution, other contributions, and Section 128 employer contributions, eligible investments, distributions, reporting and coordination with the rules applicable to other types of IRAs.
The accounts are opened for children younger than age 18 and are treated as traditional IRAs under Section 408 of the Internal Revenue Code, but with special “growth period” rules lasting until the year the child turns 18.
The One Big Beautiful Bill Act provides for establishing a Trump Account for every eligible child for whom an election is made and who has not turned 18 before the end of the calendar year in which the election is made. Contributions to Trump Accounts cannot be made before next July 4, 2026.
Unlike other IRAs, contributions can be made even if the child has no earned income. The initial federal pilot program provides a $1,000 deposit for eligible U.S. citizens born on or after January 1, 2025, through December 31, 2028, whose parents elect to open an account through the IRS’s forthcoming portal at www.trumpaccounts.gov.
The IRS is posting a draft Form 4547, “Trump Account Election(s),” to the agency’s draft tax forms. When final, the new form can be used to establish a Trump Account and to enroll in the pilot program.
This is all initial program information. Additional details will be announced to coincide with the rollout of the pilot program. The IRS will take public comments on the notice before issuing formal regulations. However, rules governing the initial account elections and the pilot program contributions may be finalized sooner, allowing parents to begin applying in 2026.