Treasury, IRS Release Guidance on ‘Trump Accounts’
Shortly after the Dell Foundation announced a $6.25 billion donation to “Trump Accounts,” the Department of Treasury and the Internal Revenue Service (IRS) issued a notice on the latest regulation and guidance with the accounts program.
“Today’s notice addresses certain areas of interest to prospective trustees of Trump Accounts and to those individuals, such as parents and guardians, who would like to establish and/or contribute to these accounts,” The Treasury and IRS said in a bulletin. “The notice requests comments on numerous issues related to Trump Accounts.”
“Trump Accounts,” also formally known as President Donald Trump’s “Invest America” program, would allow the Department of Treasury to contribute $1,000 into accounts for children born between Jan. 1, 2025, and Dec. 31, 2028.
Additional contributions from philanthropists, charities, family members, friends, or other parties cannot be made until July 4, 2026, and cannot exceed $5,000 per year.
According to Notice 2025-68, employers may contribute to “Trump Accounts” “of the employee or employee’s dependent” up to $2,500 per year. The contribution would count against the $5,000 annual limit and would not count towards the employee’s taxable income, both federal agencies stated. The annual contribution limits will also be indexed to inflation and will adjust beginning after 2027.
On how the funds would be invested, the IRS and Treasury confirmed that “Trump Accounts” would be invested in “certain mutual funds or exchange traded funds that track the S&P 500 or another index of primarily American equities.”
Guardians or account holders will not be able to withdraw from their accounts before January 1of the calendar year in which the child turns 18 years old. After that point, the account will be treated as a traditional individual retirement account (IRA) and will be subject to the same rules as other traditional IRAs.
According to the agencies, the IRS is posting a draft version of Form 4547, Trump Account Election(s) to Draft tax forms. When final, the new form can be used to establish a “Trump Account” and to enroll in the pilot program.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
