Proposed Rule2026-04533
Trump Accounts
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 9, 2026
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
This document contains proposed regulations relating to Trump accounts. The proposed regulations provide guidance on making an election to open a Trump account and reserve additional sections for further guidance on Trump accounts. The proposed regulations would affect children eligible to have a Trump account, individuals who would make elections with respect to those children, and trustees of Trump accounts.
Full Text
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<title>Federal Register, Volume 91 Issue 45 (Monday, March 9, 2026)</title>
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[Federal Register Volume 91, Number 45 (Monday, March 9, 2026)]
[Proposed Rules]
[Pages 11194-11203]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04533]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-117270-25]
RIN 1545-BR91
Trump Accounts
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document contains proposed regulations relating to Trump
accounts. The proposed regulations provide guidance on making an
election to open a Trump account and reserve additional sections for
further guidance on Trump accounts. The proposed regulations would
affect children eligible to have a Trump account, individuals who would
make elections with respect to those children, and trustees of Trump
accounts.
DATES: Written or electronic comments and requests for a public hearing
must be received by May 8, 2026.
ADDRESSES: Commenters are strongly encouraged to submit public comments
electronically via the Federal eRulemaking Portal at <a href="https://www.regulations.gov">https://www.regulations.gov</a> (indicate IRS and REG-117270-25) by following the
online instructions for submitting comments. Requests for a public
hearing must be submitted as prescribed in the ``Comments and Requests
for a Public Hearing'' section. Once submitted to the Federal
eRulemaking Portal, comments cannot be edited or withdrawn. The
Department of the Treasury (Treasury Department) and the IRS will
publish for public availability any comments submitted to the IRS's
public docket on <a href="http://www.regulations.gov">www.regulations.gov</a>. Send paper submissions to:
CC:PA:01:PR (REG-117270-25), Room 5503, Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station, Washington, DC 20044.
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulation,
Neil Sandhu at (804) 916-3775; concerning submissions of comments or a
public hearing, the Publications and Regulations Section at (202) 317-
6091 (not toll-free numbers) or by email at <a href="/cdn-cgi/l/email-protection#433336212f2a202b2622312a2d2430032a31306d242c35"><span class="__cf_email__" data-cfemail="bacacfd8d6d3d9d2dfdbc8d3d4ddc9fad3c8c994ddd5cc">[email protected]</span></a>
(preferred).
SUPPLEMENTARY INFORMATION:
Authority
This document contains proposed amendments to the Income Tax
Regulations (26 CFR part 1) to implement section 530A of the Internal
Revenue Code (Code). Section 530A(a) authorizes the Secretary \1\ to
prescribe special rules for when a Trump account is not treated in the
same manner as an individual retirement account (IRA) under section
408(a). Section 530A(b)(1)(A)(i) provides that an individual's first
Trump account (initial Trump account) is to be ``created or organized
by the Secretary.'' Section 530A(b)(1)(B) provides that a Trump account
must be ``designated (in such manner as the Secretary shall
prescribe)'' at the time of its establishment as a Trump account.
Section 530A(b)(2)(C) authorizes the Secretary to prescribe rules
regarding the time and manner for making elections to establish a Trump
account. Section 408(a)(2) authorizes the Secretary to approve nonbank
trustees for an IRA. Section 7805(a) authorizes the Secretary to
``prescribe all needful rules and regulations for the enforcement of
[the Code], including all rules and regulations as may be necessary by
reason of any alteration of law in relation to internal revenue.''
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\1\ Section 7701(a)(11)(B) provides that the term ``Secretary''
means the Secretary of the Treasury or his delegate. Section
7701(a)(12)(A)(i) defines delegate to include any agency of the
Treasury Department, which includes the IRS.
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Background
Section 70204 of Public Law 119-21, 139 Stat. 72 (July 4, 2025),
commonly referred to as the One, Big, Beautiful Bill Act, added new
sections 530A, 128, and 6434 to the Code. Section 530A provides for the
establishment of a Trump account for an eligible individual.
A Trump account is a type of traditional IRA established for the
exclusive benefit of an eligible individual or such eligible
individual's beneficiaries under section 530A. The Secretary will
create or organize the initial Trump account for each eligible
individual. An eligible individual is any individual (i) who has not
attained age 18 before the close of the calendar year in which an
election to open an initial Trump account is made, (ii) for whom a
social security number (within the meaning of section 24(h)(7)) has
been issued before the date on which the election is made, and (iii)
for whom the election is made. After an initial Trump account has been
established, a subsequent Trump account (rollover Trump account) may be
established for the account beneficiary during the period that begins
when such initial Trump account is established and that ends on
December 31st of the calendar year in which the account beneficiary \2\
of the initial Trump account attains age 17 (growth period). The
rollover Trump account must be funded by a qualified rollover
contribution, which is a trustee-to-trustee transfer of the entire
account balance from the account beneficiary's existing Trump
account.\3\
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\2\ After an initial Trump account has been opened for an
eligible individual, the individual is referred to as the account
beneficiary.
\3\ A Trump account qualified rollover contribution under
section 530A(e) may be made only during an account beneficiary's
growth period and is different from and unrelated to a qualified
rollover contribution for a Roth IRA under section 408A(e).
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A Trump account is subject to certain special rules inapplicable to
other traditional IRAs. The special rules that apply only during the
growth period include rules regarding contributions, investments,
distributions, and reporting. After the growth period, most of the
special rules no longer apply and the rules under section 408 governing
traditional IRAs generally apply. Proposed regulations regarding the
[[Page 11195]]
special rules that apply during and after the growth period are
reserved in this document. The Treasury Department and IRS anticipate
proposing regulations regarding these rules at a future date.
Additionally, section 70204 of the One, Big, Beautiful Bill Act
added section 6434, which provides for a one-time $1,000 pilot program
contribution from the Secretary to the Trump account of an eligible
child with respect to whom an election is made under section 6434.
Section 6434(a) provides that an election for the pilot program
contribution is made by an individual with respect to an eligible child
of that individual. Section 6434(c) provides that an eligible child is
a qualifying child under section 152(c) who (i) is born during the
2025, 2026, 2027, or 2028 calendar years; (ii) has had no prior pilot
program election made by any individual; and (iii) is a United States
citizen. The Treasury Department and the IRS are proposing regulations
under section 6434 in a separate notice of proposed rulemaking (REG-
117002-25) published elsewhere in this issue of the Federal Register.
Because the criteria under section 530A to be an eligible
individual for whom an initial Trump account can be opened are less
restrictive than the criteria under section 6434 to be an eligible
child for a pilot program contribution, only some eligible individuals
will also be an eligible child. Similarly, the criteria under section
530A for who can make the election to open an initial Trump account are
less restrictive than the criteria under section 6434 for who can make
the election for a pilot program contribution.
Section 128 employer contributions paid to a Trump account of an
employee or a dependent of an employee are not includible in the
employee's income. Such contributions are limited to $2,500, subject to
cost-of-living adjustments after 2027. Section 128 employer
contributions must be made pursuant to a section 128(c) Trump account
contribution program. (The Treasury Department and the IRS intend to
issue guidance under section 128 at a future date.)
Notice 2025-68, 2025-52 IRB 856, informed taxpayers that the
Treasury Department and the IRS intend to propose regulations providing
guidance with respect to section 70204, including with respect to
making an election to open an initial Trump account. The notice
addresses certain initial questions related to Trump accounts and
requests comments, with the comment period ending February 20, 2026.
The notice indicates that proposed regulations regarding the election
to open an initial Trump account (that is, these proposed regulations)
may be issued prior to the end of the comment period and to the extent
comments in response to the notice regarding that subject are not
received in time to consider in drafting the proposed regulations, they
will be considered in drafting the final regulations.
Explanation of Provisions
Proposed Sec. 1.530A-1 would provide general requirements for
Trump accounts, certain definitions relating to Trump accounts, rules
regarding the election to open an initial Trump account, and rules
regarding the responsible party for the initial Trump account.
I. Trump Accounts--General Requirements
As provided under section 530A(b)(1), proposed Sec. 1.530A-1(b)(1)
would provide that a Trump account is a type of traditional IRA that is
established for the exclusive benefit of an eligible individual and,
after the death of the individual, his or her beneficiaries. As
provided under section 530A(h)(1), proposed Sec. 1.530A-1(b)(1) would
clarify that a Trump account cannot be a SIMPLE IRA under section
408(p) and cannot accept contributions from an employer's SEP
arrangement under section 408(k).
Proposed Sec. 1.530A-1(b)(2) would provide requirements for a
Trump account. First, as provided under section 530A(b)(1)(A)(i) and
(ii), a Trump account is either (i) an initial Trump account, which is
a Trump account created or organized by the Secretary for an eligible
individual, or (ii) a rollover Trump account, which is a subsequent
Trump account created during the growth period and funded by a
qualified rollover contribution from the account beneficiary's existing
Trump account.\4\ Because a rollover Trump account must be funded by a
qualified rollover contribution (which is a transfer of the entire
account balance from the individual's prior Trump account), an
individual is permitted to have only one Trump account containing funds
(funded Trump account) at a time.
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\4\ The Treasury Department and IRS intend to release sample
language for rollover Trump accounts in future guidance.
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Second, because a Trump account is a traditional IRA, the written
governing instrument establishing a Trump account must generally meet
the requirements of section 408(a)(1) through (6), as well as the
requirements of section 530A(b)(1)(C)(i) through (iii). The written
governing instrument generally should reflect both the rules that apply
during the growth period and the rules that apply after the growth
period. The requirements of section 530A(b)(1)(C)(i) through (iii)
would be clarified in Sec. Sec. 1.530A-2 through 1.530A-4, which are
reserved in this document and are expected to be proposed in the
future.
Third, under the authority in sections 408(a)(2) and 530A(a),
proposed Sec. 1.530A-1(b)(2)(iii) would provide for the automatic
approval to act as a trustee of a Trump account of any person approved
by the IRS as of December 31, 2025, to be a nonbank trustee of an IRA.
Persons who are approved by the IRS after December 31, 2025, must
request approval in the application to act as a trustee of a Trump
account. The Treasury Department and the IRS are also considering
changes to the requirements to be a nonbank trustee and request
comments. In particular, comments are requested on whether the adequacy
of net worth requirement in Sec. 1.408-2(e)(5)(ii) should be changed
to treat certain debt as equity (for example, for broker-dealers, debt
meeting the conditions specified in the rule may be treated as capital
pursuant to the Securities and Exchange Commission rule in 17 CFR
240.15c3-1), whether the special rule for a governmental unit seeking
to be a nonbank trustee in Sec. 1.408-2(e)(8) should be expanded to
include other types of IRAs (including Trump accounts) beyond a deemed
IRA that is part of the governmental unit's own qualified employer
plan, and whether the fiduciary experience requirement in Sec. 1.408-
2(e)(2)(iii) should take into account the fiduciary experience of
subcontractors of the applicant.
Fourth, as provided under section 530A(b)(1)(B), the written
governing instrument establishing a Trump account must clearly
designate the account as a Trump account at the time of establishment.
Proposed Sec. 1.530A-1(b)(2)(iv) would also require that the account
must be titled as a Trump account.
Proposed Sec. 1.530A-1(b)(3) would outline the general areas where
Trump accounts differ from other traditional IRAs. There are special
rules for Trump accounts during the growth period related to:
contributions (as provided under section 530A(c)); investments (as
provided under section 530A(b)(3)); distributions (as provided under
section 530A(d)); reporting (as provided under
[[Page 11196]]
section 530A(i)); and coordination with IRA rules (as provided under
section 530A(h)). These requirements would be clarified in Sec. Sec.
1.530A-2 through 1.530A-6, which are reserved in this document and are
expected to be proposed in the future. Proposed Sec. 1.530A-1(b)(3)
would also provide that, after the growth period, the rules under
section 408 that apply to other traditional IRAs generally apply to
Trump accounts (as provided under section 530A(a) and (h)).
Proposed Sec. 1.530A-1(b)(4) would define terms that apply for
purposes of section 530A and the regulations thereunder.
In accordance with section 530A(b)(4), proposed Sec. 1.530A-
1(b)(4)(i) would define account beneficiary as the individual for whom
a Trump account was established.
Proposed Sec. 1.530A-1(b)(4)(ii) would define authorized
individual as the individual described in proposed Sec. 1.530A-
1(c)(1)(i).
In accordance with section 530A(b)(2), proposed Sec. 1.530A-
1(b)(4)(iii) would define eligible individual as any individual who has
not attained age 18 before the end of the calendar year in which an
election to open an initial Trump account is made under Sec. 1.530A-
1(c), has been issued a social security number within the meaning of
section 24(h)(7) before the election is made, and for whom the election
is made pursuant to proposed Sec. 1.530A-1(c).
Proposed Sec. 1.530A-1(b)(4)(iv) would define an account
beneficiary's growth period as the period that begins when the initial
Trump account is established and ends on December 31 of the calendar
year in which the account beneficiary attains age 17. This term is
created for ease of reference and stands for the concept generally used
in section 530A of ``the period before the first day of the calendar
year in which the account beneficiary attains age 18.''
Proposed Sec. 1.530A-1(b)(4)(v) would define IRA for purposes of
section 530A as an individual retirement account under section 408(a)
and includes a custodial account that is treated as a trust pursuant to
section 408(h). Although in other places in the Code and regulations,
the term IRA includes both individual retirement accounts under section
408(a) and individual retirement annuities under section 408(b), this
definition excludes individual retirement annuities under section
408(b), in accordance with section 530A(b)(1).
Proposed Sec. 1.530A-1(b)(4)(vi) would define pilot program
contribution as a $1,000 contribution made by the Secretary upon the
processing of an election for the Trump accounts contribution pilot
program under section 6434. Only individuals who meet the definition of
an eligible child under section 6434 (which is different from the
section 530A(b)(2) definition of eligible individual) are eligible to
receive a pilot program contribution.
In accordance with section 530A(e), proposed Sec. 1.530A-
1(b)(4)(vii) would define qualified rollover contribution as a direct
trustee-to-trustee transfer of the account beneficiary's entire Trump
account balance to a rollover Trump account for the same account
beneficiary.
Proposed Sec. 1.530A-1(b)(4)(viii) would define traditional IRA as
an individual retirement account under section 408(a) that is not a
Roth IRA under section 408A.
Proposed Sec. 1.530A-1(b)(5) would provide that, for purposes of
section 530A, an individual will attain an age on the individual's
birthday (the birthday rule). See Rev. Rul. 2003-72, 2003-33 IRB 346,
for other instances in which the birthday rule is applied for specific
sections of the Code.
II. Election To Open an Initial Trump Account
A. Who Can Make the Election
Proposed Sec. 1.530A-1(c)(1) would provide that an election to
open an initial Trump account for an eligible individual could be made
either by an authorized individual or by the Secretary, in accordance
with the two methods for making an election provided under section
530A(b)(2)(C).
As provided under section 530A(b)(2)(C)(ii), a person other than
the Secretary (which the proposed regulation would limit to a
particular person referred to as the ``authorized individual'') may
make the election if no prior election to open an initial Trump account
has been made by the Secretary for the eligible individual. Under the
proposed regulation, an authorized individual would be defined in two
different ways. If an election under section 6434 for a pilot program
contribution is being made at the same time as the election to open the
initial Trump account, proposed Sec. 1.530A-1(c)(1)(i)(A) would
provide that the authorized individual is the individual authorized to
make (and is making) the election under section 6434 for a pilot
program contribution. This approach would ensure that the person
permitted to elect to open the initial Trump account is the same person
making a pilot program election under section 6434. The proposed
regulations would provide that, by making the election, the authorized
individual is representing, under penalties of perjury, that he or she
is the pilot program-electing individual.
If a pilot program election is not being made at the same time as
the election to open an initial Trump account (for example, because the
eligible individual was born before January 1, 2025, and therefore is
not eligible for a pilot program contribution), proposed Sec. 1.530A-
1(c)(1)(i)(B) would provide an ordering rule to determine who is the
authorized individual for purposes of making the election to open an
initial Trump account. Because only one election to open an initial
Trump account can be made for an eligible individual, the Treasury
Department and the IRS believe that an ordering rule is necessary to
provide a clearer process for determining who may make that election.
Under the proposed ordering rule, the authorized individual would be,
in order of priority, a legal guardian, parent, adult sibling, or
grandparent of the eligible individual. If multiple individuals share
the same highest level of priority and no prior election has been made
for the eligible individual, any individual with that level of priority
may make the election to open an initial Trump account. Because no
pilot program election is being made, there is no need to conform to
the requirements of section 6434. This ordering rule is based on Sec.
1.529A-2(c), which governs who (other than the designated beneficiary
of an account established under a section 529A \5\ qualified ABLE
program (an ABLE account)) may establish the designated beneficiary's
only ABLE account. The proposed regulations would provide that, by
making the election, the authorized individual is representing, under
penalty of perjury, that he or she is authorized under these rules to
open the initial Trump account for the eligible individual and that
there is no other person with a higher priority available to make the
election.
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\5\ Section 529A was enacted by Stephen Beck, Jr., Achieving a
Better Life Experience Act of 2014, which was enacted as part of the
Tax Increase Prevention Act of 2014, Public Law 113-295 (128 Stat.
4010).
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Comments are requested on (1) whether definitions are needed for
the terms ``legal guardian,'' ``parent,'' ``sibling,'' and
``grandparent,'' (2) whether any other individual who bears a
relationship to the eligible individual under section 152(c)(2) should
also be an authorized individual, and (3) who may be the authorized
individual in situations involving foster children, orphans,
emancipated minors, wards of
[[Page 11197]]
the State, and other situations involving minors that may need
clarification in the regulations (particularly, whether a State that is
the guardian of the child would be an authorized person eligible to
open the account).
Alternatively, as would be provided in proposed Sec. 1.530A-
1(c)(1)(ii), if an election was made by an individual who was not an
authorized individual with respect to an eligible individual at the
time that the election was made, the Secretary is deemed to have made
the election to open the initial Trump account. In such instance, even
though the Trump account was opened based on an election by an
individual who was not an authorized individual, the account will not
cease to be a Trump account. See Section II.C for certain situations in
which a responsible party may be removed and replaced.
The Treasury Department and the IRS have received comments that the
Secretary should make an election on behalf of each individual who has
met the requirements to be an eligible individual based on information
from tax returns or otherwise (for example, from Social Security
Administration data). Commenters argue that making an election to open
an initial Trump account on behalf of these children is within the
authority granted to the Secretary under section 530A(b)(2)(C)(i).
Commenters point to the success of automatic enrollment (opt-out
design) in analogous state-based early wealth building programs and
also in qualified retirement plans. These opt-out designs (which do not
require any participant action before enrollment) have increased
participation relative to opt-in designs (which require action before
enrollment).
Notably, opt-out designs that exist in analogous state-based early
wealth building programs and qualified retirement plans involve pooled
accounts as opposed to individual retirement accounts. Pooled accounts
are well-suited to automatic enrollment because a plan or program can
add a new individual as a participant or beneficiary of an existing
pooled vehicle without establishing a new, separately maintained
account in that individual's name. By contrast, automatically opening a
Trump account would require establishing a new individual account and
completing the associated administrative steps needed to open and
maintain that account in compliance with the Code and other applicable
law (including federal and state banking, securities, and anti-money
laundering laws).
Although opt-out designs would result in higher participation, the
Treasury Department and the IRS have determined that it is necessary to
limit the situations in which the Secretary will make the election.
Most significantly, the Secretary would be unable to fulfill certain
requirements to open and operate a Trump account without disclosure of
taxpayer information. Section 6103 prohibits the disclosure or
inspection of information from taxpayers' tax returns or that is
otherwise received, recorded, prepared, furnished to, or collected by
the IRS with respect to the taxpayer except as expressly authorized in
the Code. Without an exception from the prohibition on disclosure, the
Treasury Department would be unable to perform necessary actions to
open an account, make eligible investments (which could be reportable
financial transactions), or assign a responsible party other than the
Secretary; thus, an account opened in this way would therefore be
unable to comply with the Code and applicable law.
Without an exception to section 6103, the Secretary may be
prohibited from disclosing the existence of the Trump account to any
individuals who might apply to become a responsible party. This would
be a barrier to the account receiving any contributions from family
members, who would not have any account information, or to receiving
the pilot program contribution (because an election must be made by a
pilot program-electing individual under section 6434). It would also
prevent families from opening rollover Trump accounts because there
would be no ability to authorize a qualified rollover contribution,
which is needed to fund the rollover Trump account. Keeping the
Secretary as the responsible party would be particularly problematic
for account beneficiaries otherwise eligible for a rollover to an ABLE
account because the Secretary generally will have no way of knowing
whether such a rollover would be appropriate for a particular
beneficiary.
The Treasury Department and the IRS have sought to make the
election process as simple and frictionless as possible by permitting
individuals to file a one-page Form 4547 at the time of filing their
tax return or at a different time, or through an electronic application
or web page made available by the Secretary. Comments are requested on
additional ways in which the Treasury Department and the IRS can
further simplify making the election to open an initial Trump account
while complying with the requirements under the Code and applicable law
(including federal and state banking, securities, and anti-money
laundering laws). Comments are also requested on whether the Treasury
Department and the IRS should authorize a State or other government
entity to make an election on behalf of an eligible individual after a
certain period of time if an initial Trump account has not yet been
created by an authorized individual, again while complying with the
requirements under the Code and other applicable laws.
B. How To Make the Election
Proposed Sec. 1.530A-1(c)(2) would provide that an election by an
authorized individual to open an initial Trump account must be made on
or before December 31 of the calendar year in which the eligible
individual attains age 17, as required by section 530A(b)(2)(A).
Proposed Sec. 1.530A-1(c)(3) would provide that the election by an
authorized individual must be made on the form prescribed by the
Secretary (Form 4547, Trump Account Election(s)) or through an
electronic application or web page made available by the Secretary, in
accordance with applicable instructions. The election may be made at
any time during the period specified in proposed Sec. 1.530A-1(c)(2),
including at the same time that the authorized individual files such
individual's Federal income tax return. The initial Trump account
election, however, is not a part of any individual's tax return and is
independent of the filing of the income tax return.
Proposed Sec. 1.530A-1(c)(4) would provide that only the first
election to open an initial Trump account processed by the IRS with
respect to an eligible individual will result in an initial Trump
account being opened for that eligible individual. Once the first
election is processed, no further election to open an initial Trump
account will be allowed. This proposed rule is intended to prevent
multiple initial Trump accounts from being opened for the same eligible
individual and conforms with the section 530A(b)(2)(C) requirements
that no prior election for that eligible individual has been made.
C. Responsible Party
Section 530A(b)(1)(A)(i) requires that the Secretary create or
organize the initial Trump account. Because the account beneficiary of
a Trump account does not initially have legal capacity under applicable
law, a responsible party is needed to take actions on behalf of the
account beneficiary in managing the Trump account; therefore, the
Secretary must designate a responsible party to act on behalf of the
account beneficiary. Proposed Sec. 1.530A-1(d)
[[Page 11198]]
would provides that, in general (that is, unless State law or, if the
trustee chooses, the account agreement, provides otherwise), the
responsible party of the initial Trump account will be the individual
who makes the election to open the account. The responsible party could
have the authority to select among eligible investments (if there is
more than one eligible investment offered), to direct a transfer to a
different trustee pursuant to a qualified rollover contribution or to
an ABLE account pursuant to a qualified ABLE rollover contribution, or
to select a successor responsible party. However, applicable law,
including State law, or the account agreement could limit or condition
the actions that the responsible party will be able to take on behalf
of the account beneficiary.
The Treasury Department and the IRS recognize that there may be
situations in which it may be appropriate for the person who is
currently the responsible party of a Trump account to be replaced,
including when the individual who made the election to open the initial
Trump account was not, in fact, an authorized individual. In these
situations, applicable law (including State law) or the account
agreement will govern when and how a responsible party may be removed
and replaced. For example, a legal guardian might be able to obtain a
court appointment under applicable State law to be a responsible party
of a Trump account. Further, to the extent not inconsistent with State
law, the account agreement might provide procedures under which a
responsible party may be removed and replaced without a court
appointment. For example, to the extent not inconsistent with
applicable law, these procedures could include who can request the
removal of a responsible party (such as the account beneficiary's legal
guardian) and who can be the new responsible party (such as a corporate
trustee, the account beneficiary's legal guardian, or another person
who is an authorized individual, consistent with the ordering rule in
proposed Sec. 1.530A-1(c)(1)).
III. Reserved Regulations Regarding Trump Accounts
This notice of proposed rulemaking reserves Sec. Sec. 1.530A-2
through 1.530A-6 for future guidance addressing contributions,
investments, distributions, reporting, and other special rules and
coordination with IRA rules.
Proposed Applicability Date
The regulations are proposed to apply to taxable years beginning on
or after January 1, 2026. In accordance with section 7805(b)(2), the
Treasury Department and the IRS intend to publish final regulations
within 18 months of the date of enactment of section 530A.
Special Analyses
I. Regulatory Planning and Review
Executive Orders 12866 and 13563 direct agencies to assess costs
and benefits of available regulatory alternatives and, if regulation is
necessary, to select regulatory approaches that maximize net benefits
(including potential economic, environmental, public health and safety
effects, distributive impacts, and equity). Executive Order 13563
emphasizes the importance of quantifying both costs and benefits,
reducing costs, harmonizing rules, and promoting flexibility.
The proposed regulations have been designated by the Office of
Management and Budget's (OMB's) Office of Information and Regulatory
Affairs (OIRA) as subject to review under Executive Order 12866
pursuant to the Memorandum of Agreement (MOA, July 4, 2025) between the
Treasury Department and the OMB regarding review of tax regulations.
OIRA has determined that the proposed rulemaking is economically
significant under section 3(f)(1) of Executive Order 12866 and subject
to review under Executive Order 12866 and section 1(b) of the MOA.
Accordingly, the proposed regulations have been reviewed by OMB. This
proposed rule is not expected to be considered a regulatory action
under Executive Order 14192 because it imposes no more than de minimis
costs.
Need for Regulation
The proposed regulations would explain how to make an election to
open a Trump account under section 530A of the Internal Revenue Code
(Code). The proposed regulations would define terms for the purpose of
implementing section 530A, clarify who may elect to open an initial
Trump account, explain how to elect to open an initial Trump account,
and designate a default responsible party to manage an initial Trump
account on behalf of the account beneficiary.
The Statute and the Proposed Regulations
Public Law 119-21, commonly referred to as the One, Big, Beautiful
Bill Act, added new sections 530A, 128, and 6434 to the Code. Section
530A describes Trump accounts, section 128 describes certain employer
contributions to Trump accounts, and section 6434 describes the Trump
accounts contribution pilot program. The proposed regulations provide
guidance on making an election to open an initial Trump account under
section 530A.
Section 530A defines a Trump account as a traditional individual
retirement account (IRA) with some special rules. Most special rules
that distinguish Trump accounts from other IRAs apply only during the
growth period. The first day of the growth period is the day the
account is established, and the final day of the growth period is
December 31 of the calendar year in which the account beneficiary
attains age 17. The rules for traditional IRAs generally apply after
the growth period. A Trump account may be established for the benefit
of a child prior to the calendar year in which the child attains age 18
if the child has been issued a social security number.
In general, distributions from Trump accounts are not permitted
during the growth period. The entire balance of a Trump account may be
rolled over in a direct trustee-to-trustee transfer to a new Trump
account of the account beneficiary. The entire balance of a Trump
account may be rolled over in a direct trustee-to-trustee transfer to
an ABLE account of the account beneficiary in the calendar year the
account beneficiary attains age 17.
Investments in a Trump account must track the returns of a broad
index of equities in primarily U.S. companies for which regulated
futures contracts are traded, avoid the use of leverage, and avoid
annual fees and expenses above 0.1%.
Trump accounts may receive contributions from nonprofits,
governments, employers, and individuals. In general, contributions to a
Trump account are subject to an annual limit of $5,000, adjusted for
inflation.
Governments and nonprofits may only make contributions through the
Treasury Department, and such contributions must be made in equal
amounts to the Trump accounts of every account beneficiary in a
qualified class. Contributions from governments and nonprofits through
the Treasury Department do not count towards the $5,000 annual
contribution limit.
Section 128 sets rules for certain employer contributions to Trump
accounts. Employers may contribute to the Trump account of an employee
or an employee's dependent. Section 128 employer contributions to a
Trump account are excluded from the
[[Page 11199]]
employee's income, up to an annual limit of $2,500, adjusted for
inflation. Section 128 employer contributions count towards the $5,000
annual contribution limit.
Section 6434 describes the Trump accounts contribution pilot
program. In the pilot program, the Secretary will pay $1,000 to the
Trump accounts of eligible children. A U.S. citizen born in 2025, 2026,
2027, or 2028 who has been issued a social security number and for whom
no request for a pilot program contribution has previously been
processed is eligible for a pilot program contribution. Pilot program
contributions do not count towards the $5,000 annual contribution
limit.
All other contributions to a Trump account, including contributions
from friends or family members, are non-deductible contributions (they
create investment in the contract (basis)) and count towards the $5,000
annual contribution limit.
The proposed regulations would be just one piece of the
implementation of section 530A; the proposed regulations would reserve
the following sections in the Code of Federal Regulations for future
guidance: Sec. Sec. 1.530A-2, 1.530A-3, 1.530A-4, 1.530A-5, and
1.530A-6. The proposed regulations would define the following terms for
the purposes of implementing section 530A: growth period, IRA, pilot
program contribution, and traditional IRA. Growth period is a concise
term for the period described repeatedly by the statute as ``the period
before the first day of the calendar year in which the account
beneficiary attains age 18.'' An IRA is an individual retirement
account. A pilot program contribution is a contribution to a Trump
account under section 6434. A traditional IRA is an individual
retirement account that is not a Roth IRA.
The proposed regulations would clarify who may elect to open an
initial Trump account. Under the proposed regulations, an individual
who is making a pilot program election for an eligible child under
section 6434 must also elect to open an initial Trump account if no
prior election was made to open an initial Trump account.\6\ If no
individual is making a pilot program election, then one of the
following individuals may elect to open an initial Trump account: a
legal guardian, a parent, an adult sibling, or a grandparent, in that
order of priority.
---------------------------------------------------------------------------
\6\ A pilot program election under section 6434 is a request for
a pilot program contribution, which is $1,000 paid to the Trump
account of a child born in 2025 through 2028. A pilot program
election is distinct from an election to open an initial Trump
account under section 530A.
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The proposed regulations would explain how to elect to open an
initial Trump account. Under the proposed regulations, the election to
open an initial Trump account must be made on a form prescribed by the
Secretary (Form 4547, Trump Account Election(s)) or through an
electronic application or web page made available by the Secretary.
The proposed regulations would designate a default responsible
party to manage an initial Trump account on behalf of the account
beneficiary while the account beneficiary does not have legal capacity.
Under the proposed regulations, in general, the default responsible
party for an initial Trump account is the individual who makes the
election to open an initial Trump account.
Baseline
The Treasury Department and the IRS have assessed the benefits and
costs of the proposed regulations relative to a no-action baseline
reflecting anticipated Federal income tax-related behavior in the
absence of these proposed regulations.
Affected Entities and Taxpayers
The proposed regulations are expected to affect 73 million children
in 44 million families.
Economic Effects of the Proposed Regulations
Election To Open an Initial Trump Account
In general, the regulations would provide clarity to the 44 million
families with children under age 18 who may be eligible to open an
initial Trump account. The regulations would be responsive to the
statutory requirement that the election to open an initial Trump
account be made in a time and manner prescribed by the Secretary. These
regulations would clarify who may open an initial Trump account for the
minor child and in what order of priority, and who may be the
responsible party for the initial Trump account while the child is
still a minor. The statute does not prescribe a time or manner to make
the election to open an initial Trump account; the statute requires the
Secretary to prescribe the time and manner of an election. Providing
clarity about the election to open an initial Trump account would
result in initial Trump accounts opening for some children under age 18
for whom an account would have been opened later or not at all. Those
children would benefit from receiving a qualified general contribution
or a contribution from a family member that they may have missed had
the account been opened later or not at all. The Treasury Department
and the IRS used historical returns for a broad index of U.S. equities
to quantify the benefit at age 18 of $1,000 invested at various
ages.\7\ Among birth cohorts from 1926 to 2006, Table 1 shows that
while an earlier investment allows for more growth, there are still
typically benefits at age 18 from making an investment even at age 17.
---------------------------------------------------------------------------
\7\ Kenneth R. French Data Library. <a href="https://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html">https://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html</a>
Table 1
----------------------------------------------------------------------------------------------------------------
Value at age 18 of investment in broad index of U.S.
equities
Investment scenario -----------------------------------------------------------
10th Percentile 50th Percentile 90th Percentile
----------------------------------------------------------------------------------------------------------------
$1,000 at birth..................................... 2,980 6,180 13,800
$1,000 at age 1..................................... 2,860 5,690 11,990
$1,000 at age 2..................................... 2,680 4,920 10,040
$1,000 at age 3..................................... 2,400 4,750 9,030
$1,000 at age 4..................................... 2,150 4,260 8,040
$1,000 at age 5..................................... 2,020 3,990 7,110
$1,000 at age 6..................................... 1,770 3,620 6,350
$1,000 at age 7..................................... 1,660 3,280 5,380
$1,000 at age 8..................................... 1,680 3,150 4,670
$1,000 at age 9..................................... 1,480 2,740 4,110
[[Page 11200]]
$1,000 at age 10.................................... 1,350 2,460 3,560
$1,000 at age 11.................................... 1,340 2,350 3,040
$1,000 at age 12.................................... 1,180 2,050 2,720
$1,000 at age 13.................................... 1,050 1,890 2,390
$1,000 at age 14.................................... 1,020 1,630 2,060
$1,000 at age 15.................................... 990 1,400 1,810
$1,000 at age 16.................................... 970 1,240 1,590
$1,000 at age 17.................................... 900 1,160 1,330
----------------------------------------------------------------------------------------------------------------
Notes: Percentiles at age 18 are calculated based on birth cohorts 1926 through 2006. For a particular birth
cohort, the value at age 18 of one dollar invested at birth is calculated as the gross 18-year market return
for a broad index of U.S. equities.
Who May Open a Trump Account
The proposed regulations would clarify who may elect to open an
initial Trump account. The proposed regulations would allow the
following individuals to open an initial Trump account: an individual
making a pilot program election for an eligible child under section
6434, a legal guardian, a parent, an adult sibling, or a grandparent.
An alternative would be to allow only an individual for whom the
eligible individual is a dependent under the Code to make the election.
This choice and several others would provide clarity about the
election to open an initial Trump account, which may allow the account
beneficiary to receive a contribution that they otherwise would have
missed. See Table 1 for the value at age 18 of a $1,000 investment at a
range of ages in a range of historical market conditions.
Although section 530A contemplates an election to open an initial
Trump account made by the Secretary, the Treasury Department and IRS
have determined that the Treasury Department would generally be unable
to perform necessary actions to open an account (1) without a statutory
exception to the disclosure prohibition in section 6103 and (2) due to
additional legal constraints (including federal and state banking,
securities, and anti-money laundering laws). For these reasons, the
Secretary making the election to open an initial Trump account was not
an alternative within the discretion of the Treasury Department and
IRS. If there were a legal path for the Treasury Department to open
initial Trump accounts, then there would still be substantial
administrative challenges to consider.
Ordering Rule
The proposed regulations would set an ordering rule among
individuals authorized to elect to open an initial Trump account. The
proposed regulations would prioritize an individual making a pilot
program election. If no one is making a pilot program election, then
the proposed regulations would use the same ordering rule as is used in
section 529A: legal guardian, parent, adult sibling, grandparent. An
alternative would be to decline to specify an ordering rule. By
prioritizing an individual making a pilot program election, the
proposed regulations would streamline the process of opening an initial
Trump account and making a pilot program election. By specifying the
ordering rule used in section 529A in other cases, the proposed
regulations would use an established system for guiding taxpayers and
ordering elections.
This choice and several others would provide clarity about the
election to open an initial Trump account, which may allow the account
beneficiary to receive a contribution that they otherwise would have
missed. See Table 1 for the value at age 18 of a $1,000 investment at a
range of ages in a range of historical market conditions.
Responsible Party
The proposed regulations would designate a default responsible
party to manage an initial Trump account on behalf of the account
beneficiary. Under the proposed regulations, the default responsible
party for an initial Trump account would be the individual who makes
the election to open an initial Trump account. One alternative would be
for the legal guardian to be the responsible party. Another alternative
would be for the individual making the initial Trump account election
to specify a responsible party. Designating the individual who makes
the initial Trump account election as the default responsible party
simplifies the process and avoids confusion from involving multiple
individuals in the process of opening and managing the account.
II. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) generally
requires that a Federal agency obtain the approval of the Office of
Management and Budget (OMB) before collecting information from the
public, whether such collection of information is mandatory, voluntary,
or required to obtain or retain a benefit. An agency may not conduct or
sponsor, and a person is not required to respond to, a collection of
information unless the collection of information displays a valid
control number. The information collection in proposed Sec. 1.530A-
1(c) is used to open an initial Trump account for eligible individuals.
The burden associated with the collection of information in these
proposed regulations are included in Form 4547 and its instructions and
approved under OMB control number 1545-2336 in accordance with PRA
procedures under 5 CFR 1320.10.
III. Regulatory Flexibility Act
The Secretary hereby certifies that these proposed regulations
would not have a significant economic impact on a substantial number of
small entities pursuant to the Regulatory Flexibility Act (5 U.S.C.
chapter 6). The proposed rules would not impose any requirement or
obligation upon small entities. The proposed rules affect individuals
and the trustee of the initial Trump accounts, which is not a small
entity. Because the regulation does not impose any requirement or
obligation on small entities, a Regulatory Flexibility Act analysis is
not required.
IV. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA)
requires that agencies assess anticipated costs and benefits and take
certain other actions before issuing a final rule that includes any
Federal mandate that may result in expenditures in any one year by a
State, local, or Tribal government,
[[Page 11201]]
in the aggregate, or by the private sector, of $100 million in 1995
dollars, updated annually for inflation. These proposed regulations do
not include any Federal mandate that may result in expenditures by
State, local, or Tribal governments, or by the private sector in excess
of that threshold.
V. Executive Order 13132: Federalism
Executive Order 13132 (Federalism) prohibits an agency from
publishing any rule that has federalism implications if the rule either
imposes substantial, direct compliance costs on State and local
governments, and is not required by statute, or preempts State law,
unless the agency meets the consultation and funding requirements of
section 6 of the Executive order. These proposed regulations do not
have federalism implications and do not impose substantial direct
compliance costs on State and local governments or preempt State law
within the meaning of the Executive order.
VI. Small Business Administration
Pursuant to section 7805(f) of the Code, this notice of proposed
rulemaking will be submitted to the Chief Counsel for the Office of
Advocacy of the Small Business Administration for comment on its impact
on small business.
Comments and Request for a Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to comments regarding the notice of
proposed rulemaking that are submitted timely to the IRS as prescribed
in this preamble under the ADDRESSES section. The Treasury Department
and the IRS request comments on all aspects of the proposed
regulations. Any comments submitted will be made available at <a href="https://www.regulations.gov">https://www.regulations.gov</a> or upon request. A public hearing will be scheduled
if requested in writing by any person who timely submits electronic or
written comments. Requests for a public hearing are also encouraged to
be made electronically. If a public hearing is scheduled, notice of the
date and time for the public hearing will be published in the Federal
Register.
Statement of Availability of IRS Documents
IRS revenue procedures, revenue rulings, notices, and other
guidance cited in this document are published in the Internal Revenue
Bulletin (or Cumulative Bulletin) and are available from the
Superintendent of Documents, U.S. Government Publishing Office,
Washington, DC 20402, or by visiting the IRS website at <a href="http://www.irs.gov">http://www.irs.gov</a>.
Drafting Information
The principal author of these proposed regulations is the Office of
Associate Chief Counsel (Employee Benefits, Exempt Organizations, and
Employment Taxes) at (202) 317-4148. Personnel from the Treasury
Department and the IRS also participated in its development.
Lists of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, the Treasury Department and IRS propose to amend 26
CFR part 1 as follows:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 is amended by adding an
entry in numerical order for Sec. 1.530A-1 to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
* * * * *
Section 1.530A-1 also issued under 26 U.S.C. 408(a)(2), 530A(a),
(b)(1)(A)(i), (b)(1)(B), and (b)(2)(C).
* * * * *
0
Par. 2. Sections 1.530A-1 through 1.530A-6 are added to read as
follows:
Sec. 1.530A-1 Trump accounts--General requirements and election to
open an account.
(a) In general. This section provides general requirements
regarding Trump accounts and rules for making an election to open an
initial Trump account.
(b) Trump accounts--(1) In general. A Trump account is a type of
traditional IRA described in section 530A(b)(1) for the exclusive
benefit of an eligible individual and, after the death of the
individual, his or her beneficiaries. A Trump account is subject to
special rules that are different from the rules for other traditional
IRAs, most of which apply only during the growth period. Additionally,
a Trump account cannot be a SIMPLE IRA under section 408(p) and cannot
accept contributions from an employer's simplified employee pension
(SEP) arrangement under section 408(k). See paragraph (b)(4) of this
section for definitions applicable for this section.
(2) Requirements for a Trump account. A Trump account must meet the
requirements stated in this paragraph (b)(2).
(i) Types of Trump accounts. A Trump account must be either an
initial Trump account or a rollover Trump account.
(A) Initial Trump account. An individual's initial Trump account is
the individual's first Trump account, which must be created or
organized by the Secretary pursuant to an election that is made in
accordance with the rules set forth in paragraph (c) of this section.
(B) Rollover Trump account. After an initial Trump account is
established, a rollover Trump account may be established for the
account beneficiary during his or her growth period. A rollover Trump
account must first be funded by a qualified rollover contribution from
the account beneficiary's existing Trump account before receiving any
other contribution, and an individual may have only one Trump account
containing funds at a time. See section 530A(e) for more details
regarding qualified rollover contributions.
(ii) Written governing instrument--(A) In general. The written
governing instrument establishing a Trump account must generally meet
the requirements of section 408(a)(1) through (6), which apply to other
IRAs, as well as the requirements of section 530A(b)(1)(C)(i) through
(iii), which apply only to Trump accounts. The written governing
instrument generally should reflect both the rules that apply during
the growth period and the rules that apply after the growth period.
(B) During the growth period. During the growth period, a written
governing instrument establishing a Trump account must generally
restrict the timing and annual amount of contributions to the Trump
account in accordance with section 530A(b)(1)(C)(i), prohibit
distributions from the Trump account in accordance with section
530A(b)(1)(C)(ii), and require that the funds in the Trump account be
invested only in an eligible investment in accordance with section
530A(b)(1)(C)(iii). Additionally, during the growth period, the written
governing instrument establishing a Trump account must meet the
requirements of section 408(a)(1) through (6), to the extent not
inconsistent with section 530A. For example, during the growth period,
the annual limit on the amount of contributions is governed by section
530A(c)(2) rather than section 408(a)(1). In addition, if the account
beneficiary dies during the growth period, section 530A(d)(6) applies
rather than the required minimum distribution rules of section
408(a)(6). In contrast, the other requirements of section 408 apply
both
[[Page 11202]]
during and after the growth period, such as the requirement of section
408(a)(1) that contributions (other than rollovers, including qualified
rollover contributions) must be made in cash, and the other
requirements of section 408(a)(2) through (5). For example, pursuant to
section 408(a)(2), the trustee of a Trump account must be a bank (as
defined in section 408(n)) or a nonbank trustee approved by the IRS.
(C) After the growth period. A written governing instrument
establishing a Trump account must meet the requirements of section
408(a)(1) through (6) after the growth period, except as provided in
section 530A. For example, after the growth period, the contribution
limits of section 408(a)(1) generally apply, except that the section
530A(h)(1) prohibition against a Trump account receiving contributions
under a SEP arrangement under section 408(k) or a SIMPLE IRA plan under
section 408(p) continues to apply to a Trump account after the growth
period.
(iii) Automatic approval for certain nonbank trustees. For purposes
of section 530A, any person approved by the IRS as of December 31,
2025, to be a nonbank trustee of an IRA is automatically approved to be
a nonbank trustee of a Trump account. Any person who is automatically
approved to be a nonbank trustee of a Trump account and actually
becomes a Trump account trustee must notify the IRS, in writing, of
this fact. See Sec. 1.408-2(e)(6)(iv).
(iv) Designation as a Trump account. The written governing
instrument establishing a Trump account must clearly designate the IRA
as a Trump account at the time of establishment. Accordingly, an
existing account (such as an IRA that is not a Trump account) cannot be
amended to become a Trump account. In addition, a Trump account must be
titled to clearly identify the account as a Trump account for the
benefit of the account beneficiary.
(3) Differences from other traditional IRAs--(i) During the growth
period. During the growth period, there are special rules for Trump
accounts with respect to:
(A) Contributions (see section 530A(c));
(B) Investments (see section 530A(b)(3));
(C) Distributions (see section 530A(d));
(D) Reporting (see section 530A(i)); and
(E) Coordination with IRA rules (see section 530A(h)).
(ii) After the growth period. After the growth period (that is,
starting January 1st of the year in which the account beneficiary
attains age 18), the rules under section 408 that apply to other
traditional IRAs are generally applicable to Trump accounts, except as
provided in section 530A(h).
(4) Definitions. For purposes of section 530A and the regulations
thereunder, the following definitions apply--
(i) Account beneficiary. The term account beneficiary means the
individual for whose benefit a Trump account was established.
(ii) Authorized individual. The term authorized individual means
the individual as described in paragraph (c)(1)(i) of this section.
(iii) Eligible individual. The term eligible individual means any
individual--
(A) Who has not attained age 18 before the end of the calendar year
in which an election under paragraph (c) of this section is made;
(B) For whom a social security number (within the meaning of
section 24(h)(7)) has been issued before the date on which an election
under paragraph (c) of this section is made; and
(C) For whom an election is made under paragraph (c) of this
section.
(iv) Growth period. For any individual with a calendar year taxable
year, the term growth period means, with respect to an account
beneficiary, the period that begins when the initial Trump account is
established and ends on December 31 of the calendar year in which the
account beneficiary attains age 17. For example, a child born on
October 1, 2025, would attain age 17 on October 1, 2042, and therefore
the last day of the growth period with respect to the child would be
December 31, 2042.
(v) IRA. The term IRA means an individual retirement account under
section 408(a) and includes a custodial account that is treated as a
trust pursuant to section 408(h). Accordingly, the term IRA does not
include an individual retirement annuity under section 408(b).
(vi) Pilot program contribution. The term pilot program
contribution means a $1,000 contribution to a Trump account made by the
Secretary upon the processing of an election for the Trump accounts
contribution pilot program under section 6434.
(vii) Qualified rollover contribution. The term qualified rollover
contribution means a direct trustee-to-trustee transfer of an account
beneficiary's entire Trump account balance to a rollover Trump account
for the same account beneficiary.
(viii) Traditional IRA. The term traditional IRA means an IRA that
is not a Roth IRA under section 408A.
(5) Application of the birthday rule. For purposes of section 530A,
an individual attains an age on his or her birthday. For example, a
child who is born on January 1, 2009, attains age 18 on January 1,
2027.
(c) Election to open an initial Trump account--(1) Who can make the
election. An election to open an initial Trump account for an eligible
individual may be made by:
(i) An authorized individual, if no prior election to open an
initial Trump account has been made for the eligible individual by the
Secretary under paragraph (c)(1)(ii) of this section. For this purpose,
the authorized individual with respect to an eligible individual is
determined as follows--
(A) If an election under section 6434 for a pilot program
contribution with respect to the eligible individual is being made at
the same time as the election to open the initial Trump account for the
eligible individual, then the authorized individual is the individual
who is authorized to make (and is making) the election under section
6434 for a pilot program contribution (the pilot program-electing
individual). By making the election, the authorized individual is
representing, under penalties of perjury, that he or she is the pilot
program-electing individual; or
(B) If an election under section 6434 for a pilot program
contribution is not being made at the same time as the election to open
the initial Trump account, then the authorized individual is a legal
guardian, parent, adult sibling, or grandparent of the eligible
individual, in that order of priority. If multiple individuals have the
same highest level of priority and no prior election has been made for
the eligible individual, then any individual with that level of
priority may make the election. For example, if there is no legal
guardian, either parent of an eligible individual may make this
election. By making the election, the authorized individual is
representing, under penalties of perjury, that he or she is authorized
to open the initial Trump account for the eligible individual and that
there is no one else with a higher level of priority who is available
to make the election; or
(ii) The Secretary, if the Secretary determines (based on
information available to the Secretary from tax returns or otherwise)
that the individual has met the other requirements to be an eligible
individual, no prior election to open an initial Trump account has been
made for the individual by an authorized individual under paragraph
(c)(1)(i) of this section, and an election
[[Page 11203]]
was made by an individual who was not an authorized individual at the
time that the election was made. In such instance, the Secretary is
deemed to have made the election to open the initial Trump account and
the Trump account that was opened based on an election by an individual
who was not an authorized individual will not cease to be a Trump
account.
(2) Time to make the election. An election to open an initial Trump
account must be made (if at all) on or before December 31 of the
calendar year in which the eligible individual attains age 17.
(3) Manner of making the election. The election by an authorized
individual to open an initial Trump account must be made on the form
prescribed by the Secretary or through an electronic application or web
page made available by the Secretary, in accordance with applicable
instructions. No initial Trump account will be opened based on an
election by an authorized individual unless the authorized individual
makes the election in such manner.
(4) Resolving multiple elections for an eligible individual. Only
the first election to open an initial Trump account that is processed
by the Secretary with respect to an eligible individual will result in
the opening of an initial Trump account for the eligible individual.
Once the Secretary processes the first election to open an initial
Trump account, no further elections to open an initial Trump account
for such eligible individual will be processed.
(d) Responsible party for the initial Trump account. In general,
the individual who makes the election to open an initial Trump account
will be the responsible party of the initial Trump account when the
account is established. Unless otherwise provided under the account
agreement or applicable law, the responsible party will have the
authority, while the account beneficiary does not have legal capacity,
to select among eligible investments (if more than one eligible
investment is offered), direct a transfer for a qualified rollover
contribution, direct a transfer for a qualified ABLE rollover
contribution (see section 530A(d)(4)), or select a successor
responsible party for the account.
(e) Applicability date. This section applies to taxable years
beginning on or after January 1, 2026.
Sec. Sec. 1.530A-2 through 1.530A-6 [Reserved]
Frank J. Bisignano,
Chief Executive Officer.
[FR Doc. 2026-04533 Filed 3-6-26; 8:45 am]
BILLING CODE 4831-GV-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.