On Dec. 2, 2025, the IRS issued Notice 2025-68 announcing upcoming regulations and providing initial guidance regarding Trump Accounts. Created by the One Big Beautiful Bill Act, Trump Accounts are a new type of tax-favored savings account for children under the age of 18.
Contributions to Trump Accounts may start July 4, 2026, and can be made by anyone, including the account beneficiary, parents or guardians, grandparents, employers, philanthropic contributors or any other source. Children born between 2025 and 2028 may be eligible to receive a special $1,000 contribution from the federal government through a pilot program.
Taxpayers will use IRS Form 4547 to establish Trump Accounts for eligible children. This same form is used to make an election to participate in the federal government’s $1,000 pilot program. A draft version of Form 4547 is available here.
Notice 2025-68 clarifies that Trump Accounts are a type of traditional individual retirement account subject to special rules during the “growth period,” which is the period that ends before Jan. 1 of the calendar year in which the account beneficiary attains age 18.
Employers can contribute to the Trump Account of an employee or an employee’s dependent pursuant to a Trump Account Contribution Program. These contributions are not includible in the employee’s income for federal tax purposes. Contributions are limited to $2,500 per employee per year, subject to cost-of-living adjustments after 2027. This program must be established pursuant to a written plan document and must meet certain tax rules that apply to dependent care assistance programs regarding discrimination, eligibility, notifications and benefits.
Also, employers can allow employees to make pretax contributions to their dependents’ Trump Accounts through a Section 125 cafeteria plan.
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