IRS releases proposed regulations on Trump Accounts

The Internal Revenue Service and the Treasury Department released proposed regulations Friday on the pilot program for the new Trump accounts, which will deposit $1,000 into the accounts of children born between 2025 and 2028.

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The Trump accounts were included as part of the One Big Beautiful Bill Act that Congress passed last July. The IRS issued a notice last December answering some initial questions, but more guidance was needed. Last week, the American Institute of CPAs sent a letter to the IRS and the Treasury asking for further information about specific matters.

The proposed regulations issued Friday include more general rules on how the Treasury secretary will make one-time $1,000 pilot program contributions to the Trump accounts of eligible children for whom elections have been made. The proposed regulations also offer guidance on the effects of making an election for an eligible child to receive a $1,000 contribution and define other qualifications.

The proposed regulations will help individuals who will make elections for eligible children to receive $1,000 pilot program contributions. In order for an eligible child to receive a $1,000 pilot program contribution, an election for a pilot program contribution must be filed by an individual who anticipates the child will be his or her qualifying child for the year during which the election is made, typically a parent or guardian. Therefore, expecting parents who want to participate need to make an election and may be in a situation to do so prior to the tax year in which the child is born.

To qualify for the pilot program, the parent or other individual who qualifies to make the election, must elect to establish a Trump account for 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; and,
• Be someone for whom no prior pilot program election has been made by any individual and processed by the Secretary of the Treasury.

For the most part, an individual who anticipates the child will be his or her qualifying child for the year during which the election is made, typically a parent or guardian, is the pilot program-electing individual.

Form 4547, “Trump Account Election(s)“ is a new form for establishing a Trump account and for enrolling in the pilot program; those interested should also see the related instructions. Spanish language versions of the form and instructions are also available.

During a hearing Wednesday before the House Ways and Means Committee, IRS CEO Frank Bisignano spoke about the new Trump Accounts. “Another major provision we’re implementing is the Trump accounts, a new type of individual retirement account that will provide families a financial head start for their children,” said Bisignano. “The IRS is focused on making it as easy as possible to open and contribute to an account. Demand has been very strong. The IRS has received over 2 million Forms 4547 already, with more on the way.”

For more information on Trump accounts, visit http://trumpaccounts.gov.