On March 6, 2026, the IRS and Treasury Department released two sets of proposed regulations on "Trump accounts," which are individual retirement accounts (IRAs) for children under 18 years old (account beneficiaries). The proposed regulations on Trump accounts (REG-117270-25) clarify how to elect to open a Trump account. The proposed regulations (REG-117002-25) on the pilot program specify how to elect to open a Trump account for child who is eligible to receive a $1,000 contribution from the government. Both sets of proposed regulations generally follow the requirements in Notice 2025-68 with some clarifications (see Tax Alert 2025-2438).

Detailed rules on contributions, investments, distributions, reporting and coordination with other IRAs remain reserved for future regulations.

Background

Trump accounts were created by the OBBBA, which added IRC Sections 530A (Trump accounts), 128 (employer contributions to Trump accounts) and 6434 (Trump accounts contribution pilot program). Requirements for Trump accounts were described in Notice 2025-68 (see Tax Alert 2025-2438).

A Trump account is a type of traditional IRA described in IRC Section 530A that is established for the exclusive benefit of an "eligible individual" (a child who has not yet reached age 18, has a Social Security number and for whom an election is made) and, after the child's death, the child's beneficiaries. During a defined "growth period" (from account establishment through December 31 of the year the account beneficiary turns 17), Trump accounts are subject to special rules on contributions, investments, distributions, reporting and coordination with the traditional IRA rules under IRC Section 408. Essentially, Trump accounts (much like traditional IRAs) grow tax-deferred. After the growth period, Trump accounts are generally governed by the traditional IRA rules, subject to certain continuing limitations. That is, beneficiaries are subject to tax on distributions, with certain modifications.

Trump accounts can receive multiple types of contributions during the growth period, including a one-time $1,000 "pilot program contribution" from the government for eligible children born in 2025 through 2028 who meet the statutory criteria. The Trump accounts contribution pilot program under IRC Section 6434 provides the framework for the $1,000 federal contribution.

Trump account proposed regulations

The Trump account proposed regulations confirm the requirements in Notice 2025-68 with some clarifications (see Tax Alert 2025-2438).

Birthday rule

The growth period is defined as the period beginning when the initial Trump account is established and ending on December 31 of the calendar year in which the account beneficiary attains age 17. The proposed regulations would adopt a "birthday rule," which would determine when the growth period ends and when the general traditional IRA rules begin to apply. For example, a child who is born on January 1, 2009, attains age 17 on January 1, 2026. The growth period would end on December 31, 2026.

Authorized individuals

The proposed regulations would confirm the rules about individuals authorized to open Trump accounts and the priority of who can open an account (the authorized individual must be, in order of priority, the child's: (1) legal guardian, (2) parent, (3) adult sibling, or (4) grandparent). If more than one person holds the same highest priority status (for example, two parents), any of those individuals may make the election.

The proposed regulations would also require the authorized individual to represent under penalties of perjury that he or she is the correct person (pilot-program electing individual or highest-priority relative) and no one with a higher priority is available.

If an election is made by a person who is later determined not to have been an authorized individual when the election was made, the Secretary would be deemed to have made the election, and the account would not cease to be a Trump account as a result.

Pilot program proposed regulations

The companion proposed regulations under IRC Section 6434 would clarify the requirements for the Trump accounts contribution pilot program, which is only available to eligible children who are born between 2025 and 2028, who are US citizens with SSNs and who have not been the subject of a pilot program election that has been processed by the Secretary.

The proposed regulations specify that the election would have to be made by an individual who "anticipates" the child will be their qualifying child for that year. Unlike the rules for Trump accounts, the proposed regulations on the pilot program do not include an ordering rule for which individuals can create the account.

Once a valid election is processed, the proposed rules would treat the eligible child as making a $1,000 payment against the child's federal income tax liability for a special tax year, creating a $1,000 overpayment (because the special tax year has no tax liability). The overpayment would be refunded only as a pilot program contribution directly to the child's Trump account.

The election would have to be made on Form 4547.

Implications

The proposed regulations provide welcome guidance around how to establish a Trump account and receive the $1,000 government contribution (if eligible). The proposed regulations also confirm that a Trump account could be established anytime before December 31 of the year a child is 17 years old. While waiting to establish a Trump account may impact the tax-deferred growth, the flexibility may be welcome to families who cannot establish one in the earlier years.

Further guidance surrounding contributions, investments and eventual distributions has been reserved for future regulations. Also, open questions surrounding employer-sponsored funding of Trump accounts for employees' children remain. Further guidance from the IRS should hopefully answer these questions.