WASHINGTON — The Treasury Department and Internal Revenue Service have issued proposed regulations outlining how families could open and contribute to new “Trump Accounts,” tax-advantaged investment accounts for children created under a 2025 tax law.
The proposed rules, published in the Federal Register, describe how individuals may elect to open an initial Trump Account for an eligible child and establish procedures for a related pilot program that would provide a one-time $1,000 government contribution to some accounts.
Trump Accounts are structured as a type of traditional individual retirement account with special rules while the beneficiary is a minor. Accounts may be opened for children under 18 who have been issued a Social Security number, with investments required to track a broad index of primarily U.S. equities and annual contributions generally capped at $5,000, adjusted for inflation.
America’s Credit Unions Responds
“The IRS’s proposed rules establishing Trump accounts are an important step toward implementing this new wealth building opportunity for American families,” Scott Simpson, president of America’s Credit Unions said in a statement. “We are encouraged that the proposal confirms families will be able to transfer funds through a trustee-to-trustee rollover to institutions of their choice, including credit unions.
“Credit unions have a long track record of helping families build savings and financial security, and we look forward to providing comments to help ensure the program is implemented in a way that expands access and allows credit unions to effectively serve families participating in these accounts,” Simpson added.
About the Program
Under the proposed pilot program, the Treasury Department would deposit $1,000 into the account of each eligible child who is a U.S. citizen born between 2025 and 2028, provided an election is made to establish the account.
Parents, legal guardians or other authorized adults could open the accounts using a new IRS form or an online application, and the person making the election would generally serve as the responsible party managing the account until the child reaches legal capacity.
Federal officials said the regulations are intended to provide guidance for implementing the new accounts authorized under the tax law and to streamline the process for families seeking to establish them.
The IRS is accepting public comments on the proposed rules through May 8.
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