IRS outlines details for Trump accounts

The IRS on Tuesday released initial details on Trump accounts, new individual retirement accounts (IRAs) for eligible children created under H.R. 1, P.L. 119-21, commonly known as the One Big Beautiful Bill Act, that include a $1,000 contribution from the government.

In Notice 2025-68, the IRS provided information about creating the accounts and the $1,000 pilot program contribution, along with other types of contributions, and how the Sec. 530A Trump accounts differ from other types of IRAs.

The notice provides a general overview, not comprehensive guidance, the IRS said, adding that it intends to propose regulations. Also, the IRS posted a draft of Form 4547, Trump Account Election(s). Taxpayers will use the final version of that form to establish an account and to enroll in the pilot program, the IRS said in a news release.

Dell donation

Also on Tuesday, billionaires Michael and Susan Dell pledged $6.25 billion to provide 25 million American children up to age 10 and who are not eligible for the $1,000 pilot program with $250 each to start accounts. The children must live in ZIP codes with a median income of less than $150,000, Michael Dell said in interviews.

“We believe that if every child can see a future worth saving for, this program will build something far greater than an account. It will build hope and opportunity and prosperity for generations to come,” said Michael Dell, the founder and CEO of Dell Technologies.

The ZIP code designation is permitted under H.R. 1, which allows state, local, and tribal governments and charitable organizations to make “general funding contributions,” or contributions made to a specified qualified class of Trump account beneficiaries. Qualified classes include beneficiaries under the age of 18, and the general funding contribution can specify geographical areas or specific birth years of beneficiaries whose accounts will receive the contributions.

Details on Trump accounts

H.R. 1 provides for establishing 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 before the end of the calendar year in which the election is made. The law also allows Treasury to set up accounts for individuals whom it identifies as eligible and for which no Trump account has already been created.

Contributions can begin July 4, 2026.

Under Sec. 6434, the government will make a one-time $1,000 pilot program contribution to the Trump account of each eligible child for whom an election is made, who is a U.S. citizen, and who is born on or after Jan. 1, 2025, through Dec. 31, 2028.

New Sec. 128 established in H.R. 1 allows employers to contribute to a Trump account of the employee or the employee’s dependent up to $2,500 per year, which is not included in the employee’s taxable income. The annual contribution limits are indexed for inflation and will adjust starting after 2027.

Amounts generally cannot be withdrawn from Trump accounts before Jan. 1 of the calendar year in which the child turns 18. Going forward, the account generally is treated as a traditional IRA and generally is subject to the same rules as other traditional IRAs.

Eligible investments in Trump accounts would generally be mutual funds and indexed ETFs.

Comments

The IRS is accepting comments through Feb. 20, 2026, although proposed regulations on opening an initial account and the election for the pilot program may be issued before that date, the IRS said. In that case, comments on those two subjects received after the Service issues proposed regulations will be considered for final regulations, the IRS said.

More information is available at trumpaccounts.gov.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.