The Treasury Department and the Internal Revenue Service issued proposed regulations on how families can open Trump Accounts, and how a $1,000 pilot deposit for eligible children will actually work.
Why It Matters
The proposed rules move the federal government closer to operationalizing Trump Accounts, a new tax-advantaged savings vehicle for children created by the One Big Beautiful Bill Act enacted in 2025, with a one-time $1,000 Treasury contribution available for eligible newborns.
The guidance sets the election process, responsible-party rules, and investment parameters, giving parents, guardians, and trustees clarity ahead of account funding dates beginning in 2026.
What To Know
Under the proposal, parents or another authorized individual must elect to open a child’s initial Trump Account using Form 4547, either by filing the one-page form with a tax return or via an IRS online portal, no later than December 31 of the year the child turns 17.
The same election form can be used to request the one-time $1,000 pilot contribution for eligible children, with English and Spanish versions of Form 4547 and instructions available on IRS.gov.
If the $1,000 pilot election is made at the same time as opening the account, the pilot program-electing individual is the person who anticipates the child will be their qualifying child for that year, typically a parent or guardian.
If no pilot election is made concurrently, the proposed order of priority for who may open the account is the legal guardian, parent, adult sibling, then grandparent.
Trump Account Eligibility
To participate in the pilot program, a parent or other eligible individual must elect to open a Trump Account on behalf of the child.
The child must:
- Be born in calendar year 2025, 2026, 2027, or 2028
- Be a United States citizen
- Have been issued a Social Security number
- Not have had a prior pilot program election made and processed by the Secretary of the Treasury on their behalf
Trump Accounts will be loaded with a $1,000 federal deposit for eligible children and allow additional contributions from individuals and employers subject to annual limits, with investment restricted to index-tracking mutual funds or ETFs focused on U.S. equities.
Funds generally cannot be withdrawn before the calendar year the beneficiary turns 18, after which the account is treated similarly to a traditional IRA for tax purposes.
Program materials note contributions cannot be made before July 4, 2026, and outline that employers can contribute up to $2,500 annually without the amount counting as employee taxable income, subject to the overall $5,000 annual contribution cap indexed to inflation.
What People Are Saying
Frank J. Bisignano, IRS chief executive officer, said in the announcement for the proposed regulations on March 6: “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. Creating Trump Accounts was one of the most important provisions in President Trump’s historic One Big Beautiful Bill, and 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.”
Treasury Secretary Scott Bessent said in January: “Trump Accounts are among the most significant policy innovations of modern times. They mark a singular moment in economic history by expanding the benefits of private ownership and compound growth to all Americans.”
What Happens Next
Treasury and the IRS will solicit and review public comments on the proposed regulations before issuing final rules, and families and trustees will be able to use Form 4547 to elect accounts and request pilot deposits once guidance is finalized.
