The Treasury Department and the IRS on Friday released much-anticipated proposed regulations outlining how Trump Accounts will be established and administered as we approach the official July 4, 2026 launch date for the landmark new program.
Trump Accounts and the Trump Account Pilot Program were established under the One, Big, Beautiful Bill enacted on July 4, 2025.
The two proposed regulations—one providing guidance on making an election to open a Trump account and the other about the Trump Accounts contribution pilot program under which eligible children can receive $1,000 contributions—will be published in the Federal Register on Monday, March 9, triggering the start of a 30-day comment period on the pilot program and a 60-day comment period on making an election to a Trump Account.
“Trump Accounts are a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up this generation and generations to follow and unlock the American Dream,” said IRS CEO Frank Bisignano. “These regulations are an example of the hard work of Treasury and the IRS in developing the guidance needed to ensure that eligible families can take advantage of Trump Accounts.”
Opening a Trump Account
The proposed guidance on making an election to open a Trump Account states that the new accounts would be a distinct category of traditional IRA created specifically for eligible minors. They would not include other IRA types such as SIMPLE IRAs or SEP IRAs.
The accounts feature a defined growth period that lasts until December 31 of the year the beneficiary turns 17. During this time, contributions are allowed but distributions are generally prohibited.
Two forms of accounts are envisioned:
• Initial Trump accounts, opened directly for eligible children.
• Rollover Trump accounts, which can receive qualified transfers during the growth period.
Once the growth period ends, the account would transition to standard IRA treatment, although certain special contribution rules may still apply.
The proposed regulations set specific guardrails around how Trump account assets can be invested. During the growth period, investments must:
• Track broad U.S. equity indices
• Avoid leverage
• Maintain annual fees below 0.1%
Annual contributions would be capped at $5,000 per year, indexed for inflation. Several types of contributions would be permitted, including those from individuals, nonprofits, governments, and employers.
Employer contributions would receive special tax treatment. Up to $2,500 per year could be contributed by an employer, but these contributions would not be treated as taxable income for the employee. However, employer contributions would still count toward the $5,000 annual limit.
Pilot program
The proposed regulation covering the pilot program that would provide a one-time $1,000 contribution to certain children’s Trump accounts is intended to seed early investment growth in the accounts, which are required to track broad U.S. equity indices with low fees. The proposed rules would take effect January 1, 2026.
Under section 6434, eligible children born between 2025 and 2028 could receive the contribution if a qualifying individual makes a formal election on the child’s behalf. The IRS would treat the election as a deemed $1,000 tax payment for the child and then deposit the same amount directly into the child’s Trump account. The contribution would not be treated as a refund claim and cannot be offset against debts or other liabilities.
It would not count toward the annual contribution limit, and would be administered directly by the Treasury Department.
To qualify, the child must be a U.S. citizen under age 18 with a valid Social Security number, and only one election per child will be accepted. Elections could be filed using a prescribed form or electronic application anytime from when the child becomes eligible until December 31 of the year the child turns 17.
More guidance to come
The proposed regulations focus primarily on the mechanics of opening and administering Trump Accounts. Additional rules—covering areas such as contributions, distributions, investments, and reporting requirements—are expected in future guidance. Treasury reserved regulatory sections §1.530A-2 through §1.530A-6 for those forthcoming rules.
Final regulations are expected within 18 months of the law’s enactment, with applicability beginning January 1, 2026.
ARA’s Graff touts program
American Retirement Association CEO Brian Graff noted during comments Thursday at the 2026 Viking Cove Institute 100 Summit in Carlsbad, Calif., that he expected the guidance would be coming very soon, and was quickly proven right with the Friday morning release.
Graff said the Trump Accounts proposal is something people perhaps aren’t paying enough attention to given its potential to create generational wealth—and to provide an important side effect.
“Actually I see it as a fantastic financial literacy program for children. I mean there’s no better way to learn than by doing,” Graff said. “To me, the best way to teach financial education is at the beginning. I’m excited at least for this aspect of this to see over time what kind of impact it has on young peoples’ interest in the markets. It’s an element that’s not really talked about.”
• See today’s IRS press release here.
• See the (unpublished until Monday) proposed regulations here.
EDITOR’S NOTE: This article has been updated since original publication to include a quote from IRS CEO Frank Bisignano.
SEE ALSO:
• Trump Accounts Website Goes Live as Ray Dalio Pledges Contribution
• Trump Accounts Not Subject to ERISA: Industry Wants Certainty