IRS issues initial guidance for Trump Accounts for eligible children
Treasury and IRS released early rules for the new Trump Account program, including eligibility, contribution limits, investment requirements, and the one-time $1,000 federal pilot contribution.
Overview
The notice outlines how Trump Accounts will operate beginning in 2026. It provides rules for establishing accounts, making contributions, handling investments, and coordinating these accounts with existing IRA rules.
Key Provisions
Elections may be made for any eligible child who has not turned 18 by the end of the election year.
Contributions cannot be made before July 4, 2026.
Children born from 2025 through 2028 who are U.S. citizens qualify for a one-time $1,000 federal contribution under the pilot program.
Government entities and charities may make qualified general contributions for a defined class of beneficiaries.
Others may contribute up to $5,000 per year.
Employers may contribute up to $2,500 per year for employees or their dependents under an employer program. This counts toward the…
