On March 9, 2026, the IRS released two proposed rules 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 that will be available later in 2026. One proposed rule addresses the federal government’s $1,000 pilot program, while the other proposed rule includes general requirements for Trump Accounts.
Contributions to Trump Accounts may start July 4, 2026, and can be made by anyone. Under the pilot program, children born between 2025 and 2028 may receive a special $1,000 contribution to their Trump Accounts from the federal government if certain requirements are met.
Contributions are subject to an annual limit of $5,000 (subject to cost-of-living adjustments after 2027), although certain types of contributions are not counted toward this limit. The accounts are treated similarly to traditional IRAs for tax purposes, with special rules applying during a “growth period” that ends on Dec. 31 of the year before the calendar year in which the child reaches age 18.
Employers may contribute to the Trump Account of an employee or an employee’s dependent pursuant to a Trump Account Contribution Program. Contributions are limited to $2,500 per employee per year, subject to cost-of-living adjustments after 2027. Employers can also allow employees to make salary reduction contributions to their dependents’ Trump Accounts under a Section 125 cafeteria plan.
Taxpayers will use a new IRS form (Form 4547, Trump Account Election(s)) 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.
For more information on Trump Accounts, visit trumpaccounts.gov and see Form 4547 instructions.
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