- Notice 2025-68 provides initial guidance on Trump accounts that is expected to be consistent with forthcoming proposed regulations.
- Both the establishment of the Trump account and the election to receive the $1,000 government contribution can be made by either filing Form 4547 or (eventually) the online tool. The payment will be received no earlier than July 4, 2026.
- Parents, employers, and certain nonprofits including §501(c)(3) entities have the opportunity to contribute to these accounts.
The Bottom Line
The One Big Beautiful Bill Act (OBBBA) introduced Trump accounts. With certain restrictions, this new type of IRA allows for, upon election, a $1,000 contribution (a “pilot program” contribution) from the government to qualifying children born after December 31, 2024 and before January 1, 2029. In 2026, contributions are limited to $5,000 per year, which includes contributions from (among others):
- the pilot program payment
- payments by employers (limited to $2,500 per year and excludable from the income of most employees), and
- qualified general funding payments (which include payments from certain §501(c)(3) nonprofits to those in a qualified class of account beneficiaries)
- “other sources (such as the account beneficiary, parents, or any other person)”
While the Notice discusses various questions, proposed regulations are forthcoming and comments are requested before February 20, 2026. Following the establishment of the account (via Form 4547 or online tool) and other elections, Treasury will provide the electing individual information about how to activate and authenticate the account.
Topics discussed and helpful insights provided by the Notice include:
- Contributions are counted in the year made, regardless of when the income tax return is filed.
- Taxation of distributions during and after the growth period.
- Trump accounts can be transferred to a traditional IRA following the growth period.
- The Notice further discusses the requirements of an “eligible investment”, the only type of asset eligible for Trump account fund investment.
- Recipients of general funding contributions—for example those made by a §501(c)(3)— will be identified by the Treasury Department based on the Notice’s outline of qualified geographic areas and class. Following the allocation, the contribution must be $25 or more per beneficiary in the qualified class.
- An employee will be able to contribute to the Trump Account of their dependent via salary reduction under a section 125 cafeteria plan.
Action Items and Important Dates
Parents and other legal guardians wishing to open a Trump account and receive the pilot program payment may do so with Form 4547 or the online tool once available. Employers may consider contributions to Trump accounts as part of their benefits package. Nonprofits may consider a general funding contribution as part of their plans in the upcoming years.