IRS proposes regulations for Trump accounts, pilot program

The IRS issued two sets of proposed regulations for Trump accounts, the new type of individual retirement accounts for eligible children under Sec. 530A of H.R. 1, P.L. 119‑21, known as the One Big Beautiful Bill Act.

Proposed regulations under Sec. 530A (REG-117270-25), provide guidance on how to open initial Trump accounts. Proposed regulations under Sec. 6434 (REG-117002-25) provide details on the pilot program under which the government deposits $1,000 into the accounts of eligible children.

The proposed regulations under Sec. 530A provide general requirements for Trump accounts, certain definitions relating to Trump accounts, rules regarding the election to open an initial Trump account, and rules regarding the responsible party for the initial Trump account.

The proposed regulations under Sec. 6434 would establish the framework for the Trump accounts pilot program. The regulations would:

1. provide the general rule that a pilot program-electing individual must the election for an eligible child of such individual in order for the IRS to make a $1,000 pilot program contribution into the Trump account for which such eligible child is the beneficiary.
2. define terms solely for this section, including “eligible child,” “pilot program election,” “pilot program-electing individual,” “special taxable year,” and “Social Security number.”
3. identify how the deemed payment upon the processing of a pilot program election generates an overpayment of tax for the eligible child in the amount of $1,000, which is then refunded to the eligible child as a $1,000 pilot program contribution into such child’s Trump account.
4. provide rules for the timing of the pilot program election and rules for the manner of making the pilot program election.

To be eligible, the child must be born in calendar years 2025, 2026, 2027, or 2028, be a U.S. citizen, have been issued a Social Security number, and be someone for whom no prior pilot program election has been made by any individual and processed by the IRS.

Form 4547, Trump Account Election(s) is a new form for establishing a Trump account and for enrolling in the pilot program. Those interested should also see the related instructions.

Treasury Secretary Scott Bessent said last month that 2 million forms for Trump accounts have been filed.

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