The One Big Beautiful Bill Act (OBBB) established Trump accounts, which are tax-advantaged individual retirement accounts (IRAs) that individuals can open for eligible minors or U.S. citizens born in 2025–2028. These accounts have special rules about contributions, investments, distributions, and reporting during the account’s “growth period.” That period ends on December 31st of the year in which the minor account beneficiary turns 17.
The Internal Revenue Service (IRS) has now released proposed regulations that explain how individuals can open a Trump account for a minor and receive a one-time $1,000 “pilot program contribution” from the U.S. government. See IR 2021-31, IR 2026-33, 03/06/2026; Preamble to Prop Reg REG-117270-25, Preamble to Prop Reg REG-117002-25; 03/09/2026. Additionally, individuals can fund Trump accounts through the following types of contributions: qualified general contributions from nonprofit and government entities, employer contributions, qualified rollover contributions, and contributions from the accountholder’s parents or other third parties.
Rule for Election of Trump Account
The proposed regulations outline the requirements for electing to open a Trump account under IRC § 530A. Either an “authorized individual” or the U.S. Treasury Secretary can make an election, which allows the Secretary to make the pilot program contribution to the account at the same time the account is opened, if the authorized individual elects to receive that contribution.
On the other hand, if no election for a pilot contribution is made for a new account, the regulations provide for an ordering rule that designates the authorized individual. In order of priority, the authorized individual is the child’s:
- Legal guardian;
- Parent;
- Adult sibling; or
- Grandparent.
The person opening the account must state under oath that they are the authorized individual, in that no person with higher priority under the ordering rule is available to make the election. Either applicable state and federal law or the account agreement determines how an authorized person is removed and replaced.
Individuals can make a Trump account election by filing IRS Form 4547 at the time they file their federal tax return, although this election form is not part of the tax return. They can also make the election via an electronic application or webpage.
The IRS is soliciting various comments from the public on the following issues:
- Whether the terms “legal guardian,” “parent,” “sibling,” and “grandparent” need further clarification;
- Whether individuals with other relationships to children should be included as authorized individuals; and
- Who should serve as authorized individuals for foster children, orphans, emancipated minors, and wards of the state.
Rule for Pilot Program Contributions to Trump Accounts
The IRS simultaneously proposed a rule describing how it intends to handle pilot program contributions, or a one-time $1,000 contribution from the U.S. Treasury to Trump accounts opened to benefit certain individuals. Under this rule, the “pilot program-electing individual” must make an affirmative election for an eligible child to receive the contribution. A “pilot program-electing individual” is the same person who believes that the child will constitute a “qualifying child” under IRC §152(c) for the tax year. A pilot program-electing individual may make the election at any time during the calendar year, so long as it is made before December 31st of the calendar year in which the eligible child turns 17.
The practical effect of the pilot program election is that the IRS will treat the child as having made a $1,000 payment against a federal income tax debt. The child’s “overpayment” will then be refunded to the child’s Trump account as a pilot program contribution. Even if the child owes federal income taxes, the child still will receive the entire $1,000 payment; there will be no offset of the payment by any taxes owed. For this reason, the payment is based on the child’s “special taxable year,” not the calendar year in which the election is made. Finally, if the child has no valid Trump account, then the $1,000 will not be refunded to the child or any other individual.
Comments and any requests for a public hearing on either rule are due May 8, 2026.
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