Proposed Rule2026-04534
Trump Accounts Contribution Pilot Program
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 the Trump accounts contribution pilot program under which the Trump accounts of eligible children can receive $1,000 pilot program contributions. Eligible children must be U.S. citizens with valid Social Security numbers born in 2025 through 2028. The proposed regulations would provide guidance on making an election for the Trump account of an eligible child to receive a $1,000 pilot program contribution. The proposed regulations would affect eligible children and individuals who would make elections with respect to those children.
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 11203-11212]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04534]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[REG-117002-25]
RIN 1545-BS00
Trump Accounts Contribution Pilot Program
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document contains proposed regulations relating to the
Trump accounts contribution pilot program under which the Trump
accounts of eligible children can receive $1,000 pilot program
contributions. Eligible children must be U.S. citizens with valid
Social Security numbers born in 2025 through 2028. The proposed
regulations would provide guidance on making an election for the Trump
account of an eligible child to receive a $1,000 pilot program
contribution. The proposed regulations would affect eligible children
and individuals who would make elections with respect to those
children.
DATES: Written or electronic comments and requests for a public hearing
must be received by April 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-117002-25) 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. Send paper submissions to: CC:PA:01:PR (REG-117002-25),
Room 5503, Internal Revenue Service, P.O. Box 7604, Ben Franklin
Station, Washington, DC 20044.
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Molly E. Lovern at (202) 317-5416; concerning submissions of comments
or a public hearing, the Publications and Regulations Section at (202)
317-6901 (not toll-free numbers) or by email at <a href="/cdn-cgi/l/email-protection#611114030d080209040013080f0612210813124f060e17"><span class="__cf_email__" data-cfemail="7a0a0f18161319121f1b0813141d093a130809541d150c">[email protected]</span></a>
(preferred).
SUPPLEMENTARY INFORMATION:
Authority
This document contains proposed amendments to the Procedure and
Administration Regulations (26 CFR part 301) to implement section 6434
of the Internal Revenue Code (Code) relating to the Trump accounts
contribution pilot program. Section 6434(d) authorizes the Secretary of
the Treasury or the Secretary's delegate (Secretary) to prescribe rules
for the time and manner for elections under section 6434. The proposed
regulations are also issued under the authority of section 7805(a) of
the Code, which 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 to internal revenue.''
Background
I. Overview
Section 70204 of Public Law 119-21, 139 Stat. 72 (July 4, 2025),
commonly known as the One, Big, Beautiful Bill Act of 2025, added new
sections 530A and 6434 to the Code relating to Trump accounts. Section
530A of the Code provides for the establishment of a Trump account for
an eligible individual as defined in section 530A(b)(2) and cross-
references section 6434. Section 6434 provides for a one-time $1,000
contribution from the Secretary to the Trump account of an eligible
child with respect to whom an election under section 6434 is made
($1,000 pilot program contribution).
These proposed regulations would implement section 6434. The
Treasury Department and the IRS are proposing regulations under section
530A in another notice of proposed rulemaking (REG-117270-25) published
elsewhere in this issue of the Federal Register.
II. Trump Accounts Generally
A Trump account is a type of traditional individual retirement
account (IRA) established for the exclusive benefit of an eligible
individual or the individual's beneficiaries under section 530A.
Section 530A directs the Secretary to create or organize the first
Trump account (initial Trump account) for each eligible individual. An
eligible individual is any individual (i) who has not attained age 18
before the close of
[[Page 11204]]
the calendar year in which an election to open an initial Trump account
(initial Trump account election) is made, (ii) for whom a social
security number has been issued before the date of the initial Trump
account election, and (iii) for whom the initial Trump account election
is made.
A Trump account is subject to certain special rules on
contributions, investments, distributions, and reporting that are
inapplicable to other individual retirement arrangements under section
408 of the Code. After the period beginning when a Trump account is
established and ending on December 31 of the calendar year in which a
Trump account beneficiary attains age 17 (growth period), most of the
special rules no longer apply and the rules under section 408 governing
traditional IRAs generally apply. During the growth period, a
subsequent Trump account (rollover Trump account) may be established
for an individual and must be funded by a trustee-to-trustee transfer
of the entire account balance from the individual's existing Trump
account. 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 may
only have one Trump account containing funds at a time.
Unlike contributions to other IRAs, which require an IRA owner to
have includible compensation, under the special rules applicable during
the growth period of a Trump account, a $1,000 pilot program
contribution may be made to the Trump account of a child eligible to
receive the $1,000 pilot program contribution even if the child does
not have includible income. Because the criteria under section 530A to
be an eligible individual for the opening of an initial Trump account
differ from the criteria under section 6434 to be an eligible child
whose Trump account may receive a $1,000 pilot program contribution,
only a portion of the individuals eligible for a Trump account will
also be eligible to receive a $1,000 pilot program contribution.
However, a child who is eligible for a $1,000 pilot program
contribution must have a Trump account in order for the Secretary to
pay the $1,000 pilot program contribution. A child who does not have a
Trump account for any reason will not receive a $1,000 pilot program
contribution, even if such child is otherwise eligible for a $1,000
pilot program contribution.
III. Trump Accounts Contribution Pilot Program
In general, section 6434 provides that when an individual makes an
election with respect to an eligible child of the individual, the
election results in a one-time, $1,000 pilot program contribution into
the eligible child's Trump account. The term ``Trump account'' has the
same definition as in section 530A.
Section 6434(a) provides that an individual makes an election for
the Trump accounts contribution pilot program with respect to an
eligible child of that individual. With such election, the eligible
child is treated as making a $1,000 payment against the income tax
liability imposed by subtitle A of the Code for the taxable year for
which the election is made. Section 6434 does not require that the
election be made for a particular calendar year. Although the eligible
child is receiving the benefit of the pilot program election, the
eligible child does not make the pilot program election.
Section 6434(b) provides that the same amount of the $1,000 payment
is paid by the Secretary to the Trump account of the eligible child for
which the election in section 6434(a) was made ($1,000 pilot program
contribution). The $1,000 pilot program contribution into the eligible
child's Trump account therefore cannot occur without an election having
been made for that child. Section 6434(b) authorizes the Secretary to
pay the $1,000 pilot program contribution only ``to the Trump account
with respect to which such eligible child is the account beneficiary.''
Pursuant to section 6434(f)(1), a $1,000 pilot program contribution
made under section 6434 is not subject to reduction or offset by the
mandatory offsets of subsections (c) (past-due support), (d) (debts
owed to Federal agencies), (e) (past-due, legally enforceable state
income tax obligations), and (f) (unemployment compensation debts) of
section 6402 of the Code or any other similar offset. Similarly,
section 6434(f)(2) prohibits reduction or offset of such $1,000 pilot
program contributions by other assessed Federal taxes subject to
collection including levy. Section 6434(g) prevents overpayment
interest under section 6611(a) of the Code from accruing prior to
January 1, 2028, with respect to any payment under section 6434.
Section 6434(c) defines the term ``eligible child'' for purposes of
section 6434. It provides that an eligible child is a qualifying child
under section 152(c) of the Code; is born during the 2025, 2026, 2027,
or 2028 calendar year; has had no prior pilot program election made by
any individual; and is a United States citizen.
Section 6434(e)(1) requires the pilot program election to include
the social security number of the eligible child for whom the election
is made. Section 6434(e)(2) cross-references section 24(h)(7) of the
Code to define the term ``social security number'' for section 6434.
The social security number must be issued before the election is made.
Section 6434(d) authorizes the Secretary to provide the rules for
the time and manner of making the pilot program election.
Explanation of Provisions
Proposed Sec. 301.6434-1 would establish the framework for the
Trump accounts contribution pilot program. First, it would provide the
general rule that a pilot program-electing individual must make a pilot
program election with respect to an eligible child of such individual
in order for the Secretary to make a $1,000 pilot program contribution
into the Trump account for which such eligible child is the
beneficiary. Second, it would define several terms solely for purposes
of section 6434, including the terms ``eligible child,'' ``pilot
program election,'' ``pilot program-electing individual,'' ``special
taxable year,'' and ``social security number.'' Third, it would
identify how the deemed payment upon the processing of a pilot program
election generates an overpayment of tax for the eligible child in the
amount of $1,000, which is then refunded to the eligible child as a
$1,000 pilot program contribution into such child's Trump account.
Fourth, it would provide the rules for the timing of the pilot program
election. Lastly, it would provide the rules for the manner of making
the pilot program election.
I. General Rule
Proposed Sec. 301.6434-1(a) would provide that a pilot program-
electing individual must make a pilot program election with respect to
an eligible child of the pilot program-electing individual in order for
the Secretary to make a $1,000 pilot program contribution into the
Trump account of the eligible child. This general rule would conform
with the statutory scheme of section 6434(a), which provides that after
a pilot program election, an eligible child is treated as making a
$1,000 payment against an income tax liability under subtitle A of the
Code, and section 6434(b), which provides that the $1,000 amount
treated as a payment under section 6434(a) is paid by the Secretary to
the Trump account of the eligible child.
[[Page 11205]]
II. Definitions
Proposed Sec. 301.6434-1(b) would define terms that apply solely
for purposes of Sec. 301.6434-1.
Under proposed Sec. 301.6434-1(b)(1), the term ``eligible child''
would mean an individual (i) who the pilot program-electing individual
anticipates will be that individual's qualifying child under section
152(c) for the taxable year of the pilot program-electing individual in
which the pilot program election is made, (ii) who is born in calendar
year 2025, 2026, 2027, or 2028, (iii) who is a United States citizen,
(iv) to whom a social security number has been issued, and (v) with
respect to whom no prior pilot program election has been made by any
individual and processed by the Secretary. The birth year and
citizenship requirements in proposed Sec. 301.6434-1(b)(1)(ii) and
(iii) would implement section 6434(c)(1) and (3), and the social
security number requirement in proposed Sec. 301.6434-1(b)(1)(iv)
would implement section 6434(e).
The relationship requirement between the pilot program-electing
individual and the eligible child, reflected as part of the eligible
child definition in proposed Sec. 301.6434-1(b)(1)(i), is mandated by
section 6434(a), which provides that an election is made by an
individual ``with respect to an eligible child of the individual,'' and
section 6434(c), which provides that an eligible child is a qualifying
child as defined in section 152(c). Although an individual may
anticipate that an eligible child will be the individual's qualifying
child under section 152(c) for an ongoing taxable year, whether an
eligible child is indeed any individual's qualifying child under
section 152(c) with respect to that individual's taxable year cannot be
conclusively determined until the close of such taxable year. However,
section 6434 does not require elections to be made with reference to a
closed taxable year of the pilot program-electing individual. Thus, to
provide the pilot program-electing individual the flexibility to make
the pilot program election at any time during a calendar year rather
than wait until after the close of a taxable year, proposed Sec.
301.6434-1(b)(1)(i) permits the child's eligibility as long as a pilot
program-electing individual anticipates the eligible child will be that
individual's qualifying child under section 152(c) for the taxable year
in which the election is made. For additional information on who is a
qualifying child under section 152(c), potential pilot program-electing
individuals (including parents, foster parents, and other relatives)
can look to IRS Publication 501, Dependents, Standard Deduction, and
Filing Information.
Lastly, with respect to the definition of the term eligible child,
under proposed Sec. 301.6434-1(b)(1)(v), a child would no longer be
eligible once a pilot program election is made and processed for that
child. This is required by section 6434(c)(2), which provides that an
eligible child, among other requirements, is a child with respect to
whom no prior pilot program election has been made. Proposed Sec.
301.6434-1(b)(1)(v) would ensure that an eligible child is not
prevented from receiving a $1,000 pilot program contribution based on
an erroneous or malicious election by conditioning the eligibility
criteria on the making and processing of an election, rather than
solely the making of an election.
Under proposed Sec. 301.6434-1(b)(2), the term ``pilot program
election'' means an election under section 6434.
Under proposed Sec. 301.6434-1(b)(3), the term ``pilot program-
electing individual'' means an individual authorized to make a pilot
program election with respect to an eligible child. An individual is
authorized to make a pilot program election with respect to an eligible
child who the individual anticipates will be the individual's
qualifying child under section 152(c) for the taxable year of the
individual in which the pilot program election is made, which is the
same requirement reflected in proposed Sec. 301.6434-1(b)(1)(i) for
the definition of eligible child. The definition of pilot program-
electing individual in proposed Sec. 301.6434-1(b)(3) would cross-
reference the relevant portion of the definition of eligible child in
proposed Sec. 301.6434-1(b)(1)(i). This definition accomplishes the
purpose of section 6434 to facilitate investment into and financial
growth of an eligible child's Trump account by enabling a pilot program
election to be made at any time during the calendar year. If section
6434 was interpreted to instead require pilot program elections to be
made with respect to a calendar-based taxable year of the pilot
program-electing individual for which the eligible child was such
individual's qualifying child under section 152(c), the earliest a
pilot program election could possibly be made would be after the close
of the taxable year of the pilot program-electing individual during
which the eligible child was born. Such an interpretation would impose
a restriction on making a pilot program election not found in section
6434 and would limit the maximum growth potential of contributions into
the eligible child's Trump account. Furthermore, under section 6434,
the payment is deemed to be made by the eligible child and has no
connection to any taxable year of the pilot program-electing
individual, thereby providing no clear basis to tie a pilot program
election to a taxable year of the pilot program-electing individual. If
a pilot program-electing individual makes an election in anticipation
that an eligible child will be the individual's qualifying child under
section 152(c) and complies with all other rules promulgated by the
Secretary for section 6434 elections, the pilot program election will
not be rendered ineffective solely on the basis that it is later
determined that the eligible child does not meet the definition of a
qualifying child of the individual for the taxable year in which the
pilot program election is made.
Under proposed Sec. 301.6434-1(b)(4), the term ``Secretary'' means
the Secretary of the Treasury or the Secretary's delegate. See section
7701(a)(11)(B) of the Code.
Under proposed Sec. 301.6434-1(b)(5), the term ``social security
number'' has the meaning given such term in section 24(h)(7)(B),
determined by substituting ``before the date of the election made under
section 6434'' for ``before the due date of such return'' in section
24(h)(7)(B)(ii).
Under proposed Sec. 301.6434-1(b)(6), the term ``special taxable
year'' means a taxable period of an eligible child that arises upon the
processing of a pilot program election and is deemed to close
immediately after arising, for which no Federal income tax liability is
owed, and which bears no relationship to the Federal income tax
liability of the pilot program-electing individual for any taxable
period. This special taxable year is distinct from any calendar-based
taxable year for the eligible child's Federal income tax liability and
does not sever or modify the eligible child's calendar-based taxable
period. To implement the requirements of section 6434(a), (b), and (f)
as explained in Section III of this Explanation of Provisions, proposed
Sec. 301.6434-1(c)(1) would provide that a pilot program election is
made with respect to the eligible child's special taxable year, rather
than with respect to any calendar-based taxable year for the eligible
child's Federal income tax liability.
As explained in Section III of this Explanation of Provisions, an
overpayment can only be determined after the close of a taxable year by
comparing the amount of tax liability owed to the amount of payments
made. Like the proposed definition of pilot program-electing
individual, the
[[Page 11206]]
proposed definition of special taxable year accomplishes the purpose of
section 6434 by allowing for the $1,000 pilot program contribution to
be deposited by the Secretary into the Trump account without waiting
for the close of a calendar-based taxable year, thus facilitating the
financial growth of the Trump account. Determining an overpayment from
a special taxable year also meets the statutory intent that the
contribution be made at any time during a calendar year rather than
after the close of the taxable year for which an election is made--at
the earliest. Additionally, as explained more thoroughly in Section III
of this Explanation of Provisions, the proposed definition of a special
taxable year ensures that an eligible child's deemed payment upon
election under section 6434(a) generates an overpayment of $1,000
instead of the deemed payment being reduced or eliminated if it were
used to satisfy a child's potentially unpaid Federal income tax
liability for a calendar-based taxable year election.
Under proposed Sec. 301.6434-1(b)(7), the term ``Trump account''
has the meaning given to the term in section 530A(b)(1). This
definition includes an initial Trump account and a rollover Trump
account.
III. Effect of a Pilot Program Election
Proposed Sec. 301.6434-1(c)(1) would provide that a pilot program
election must be made by a pilot program-electing individual with
respect to the special taxable year of an eligible child of the pilot
program-electing individual. Proposed Sec. 301.6434-1(c)(2) would
provide that upon the processing of an election with respect to an
eligible child, the eligible child would be treated as making a $1,000
payment against a Federal income tax liability under subtitle A of the
Code for the eligible child's special taxable year, resulting in a
$1,000 overpayment. Proposed Sec. 301.6434-1(c)(3) would provide that
the $1,000 overpayment described in Sec. 301.6434-1(c)(2) will be
refunded by the Secretary as a $1,000 pilot program contribution to the
eligible child's Trump account.
Section 6434 fits into the existing framework for the refund of an
overpayment of tax but creates some special rules for the determination
and the refunding of the overpayment. In Jones v. Liberty Glass Co.,
332 U.S. 524, 531 (1947), the Supreme Court explained that an
overpayment of tax for a taxable year is determined by comparing the
amount by which payments exceed the amount of tax properly due at the
close of the taxable year. Under these rules, a taxpayer who pays
$1,000 towards a taxable year but owes zero Federal income tax
liability for that taxable year will have an overpayment of $1,000. See
also section 6401(c) (``An amount paid as tax shall not be considered
not to constitute an overpayment solely by reason of the fact that
there was no tax liability in respect of which such amount was
paid.''). In contrast, for example, a taxpayer who pays $1,000 towards
a taxable year but owes $500 for that taxable year will have an
overpayment of only $500. Once the IRS determines the amount of an
overpayment, the full amount of the overpayment may not necessarily be
refunded to a taxpayer. Section 6402(a) provides the IRS the discretion
to credit an overpayment against ``any liability in respect of an
internal revenue tax on the part of the person who made the
overpayment.'' Additionally, before the IRS can refund any remaining
overpayment, the refund must be reduced and offset against any past-due
non-tax debts of the taxpayer described in the provisions of section
6402(c), (d), (e), and (f), otherwise known as mandatory Treasury
Offset Program offsets.
Concerning the determination of an overpayment, section 6434(b)
provides that the ``amount treated as a payment under subsection (a)
shall be paid by the Secretary'' to the eligible child's Trump account.
Section 6434(a) provides that the eligible child for whom an election
is made is treated as ``making a payment . . . in an amount equal to
$1,000.'' For most children who have no Federal income tax liability,
the plain language of section 6434(a) and (b) is consistent with the
Supreme Court's explanation of how to determine an overpayment in Jones
v. Liberty Glass. However, if section 6434(a) were to be construed as
providing for a deemed payment of $1,000 for a taxable year for which
an eligible child owes a Federal income tax liability, then that child
would have an overpayment only if the deemed payment exceeded the tax
owed and, if so, such overpayment would be less than $1,000. Read in
conjunction, however, section 6434(a) and (b) instruct that the
Secretary's contribution to an eligible child's Trump account must be
in the amount of $1,000.
Moreover, section 6434(f) creates safeguards to ensure the entire
$1,000 amount is contributed to an eligible child's Trump account. As
explained above, section 6402(a) provides that the IRS has the
discretion to credit an overpayment to a taxpayer's unpaid tax
liabilities and is required to reduce the refund of any remaining
overpayment by the mandatory Treasury Offset Program offsets of section
6402(c), (d), (e), and (f). Section 6434(f), which is described in
proposed Sec. 301.6434-1(c)(4), ensures that the entire $1,000
overpayment amount described in proposed Sec. 301.6434-1(c)(2) would
be contributed into the eligible child's Trump account as provided in
section 6434(a) and (b).
To implement the requirements of section 6434(a), (b), and (f),
proposed Sec. 301.6434-1(c)(1) would provide that a pilot program
election is made with respect to the eligible child's special taxable
year instead of the calendar year generally used for individual income
taxes. The use of a special taxable year instead of a calendar year
ensures that the plain language of section 6434(a), (b), and (f)--that
when an election is made with respect to an eligible child, the result
is a $1,000 pilot program contribution to the eligible child's Trump
account--may be accomplished with respect to any eligible child for
whom an election is made in compliance with section 6434 and proposed
Sec. 301.6434-1.
Additionally, section 6434(b) and (i) require that the $1,000 pilot
program contribution is made specifically to the section 530A Trump
account of the eligible child. Proposed Sec. 301.6434-1(c)(3) would
provide that the $1,000 contribution will be made to the Trump account
of the eligible child. Under section 6434(b) and (i) and proposed Sec.
301.6434-1(c)(3) and (b)(7), the $1,000 contribution may be made to an
eligible child's initial Trump account or to a rollover Trump account
in the case of an eligible child who has a rollover Trump account.
Because section 6434 only authorizes the Secretary to pay the $1,000
contribution ``to the Trump account with respect to which such eligible
child is the account beneficiary,'' it does not allow for an eligible
child who does not have a Trump account to receive a $1,000 pilot
program contribution; nor does it allow for an eligible child to
receive the $1,000 pilot program contribution in any manner other than
as a contribution to the eligible child's Trump account. Thus, if an
eligible child with respect to whom a pilot program election is made
does not have an established Trump account for any reason--including if
a Trump account was never established for the eligible child, or if an
eligible child's Trump account ceased to be a Trump account for any
reason including death of the eligible child--the Secretary is not
authorized to remit the $1,000 pilot program contribution to any
recipient because such a remittance would not be ``to the Trump account
with respect to which such eligible child is the account beneficiary.''
See
[[Page 11207]]
section 6434(b). Accordingly, proposed Sec. 301.6434-1(c)(3) would
provide that the $1,000 overpayment described in proposed Sec.
301.6434-1(c)(2) will not be refunded unless the eligible child has an
established Trump account and that no refund will be paid under the
provisions of section 6434 except as a $1,000 pilot program
contribution to the eligible child's Trump account.
Lastly, proposed Sec. 301.6434-1(c)(5) would provide that a pilot
program election is not a claim for credit or refund of an overpayment.
Section 301.6402-2, which establishes the rules for a claim for credit
or refund, provides that only the taxpayer with the overpayment may
file such a claim. Section 6434(a), however, instructs that a pilot
program election is not made by the eligible child for whom an
overpayment for contribution is generated; it is instead made by a
pilot program-electing individual with respect to an eligible child of
the pilot program-electing individual. Because it is the filing of the
pilot program election by the pilot program-electing individual that
generates the overpayment that is refunded as a $1,000 pilot program
contribution into the eligible child's Trump account and the eligible
child is not the person making such pilot program election, the pilot
program election cannot be a claim for credit or refund.
IV. Timing of Election
Proposed Sec. 301.6434-1(d) would provide timing rules for pilot
program elections as authorized by section 6434(d). The rules of
proposed Sec. 301.6434-1(d) would clarify that an election may only be
made during the time period prescribed, that relief for an untimely
election is not available under Sec. Sec. 301.9100-1, 301.9100-2, and
301.9100-3, that only the first election made and processed with
respect to an eligible child will result in a $1,000 contribution to
the eligible child's Trump account, and that no subsequent elections
will be processed after the first election is processed.
Section 6434 does not set forth a specific period in which a pilot
program election must be made but instead prescribes that elections
must be made at such time as the Secretary provides. Under proposed
Sec. 301.6434-1(d)(1)(i), elections may be made starting on the day
that a child becomes eligible. An election made on any earlier date
would not be allowed under section 6434 because it would not be ``an
election . . . with respect to an eligible child.'' Proposed Sec.
301.6434-1(d)(1)(ii) would provide that the last day for a pilot
program election with respect to an eligible child would be December 31
of the calendar year in which the eligible child reaches age 17. This
corresponds with the termination of the growth period, after which a
child is no longer eligible to open a Trump account pursuant to section
530A(1)(A)(ii)(I) and (2)(A) and many of the special rules in section
530A no longer apply to the account. This broad election period--from
the date of eligibility to the final date of growth period--is intended
to ensure all children are able to receive a $1,000 pilot program
contribution if they meet all section 6434 eligibility criteria during
the time period in which a child would be eligible to have a Trump
account opened. In cases where a pilot program election is not made
until near the end of the growth period, the Secretary can nonetheless
still make a $1,000 pilot program contribution to an eligible child's
Trump account after the growth period ends as long as a Trump account
was established for the eligible child under section 530A and has not
ceased to exist for any reason.
Proposed Sec. 301.6434-1(d)(2) would provide that only the first
pilot program election processed by the IRS with respect to an eligible
child will result in a $1,000 contribution to the eligible child's
Trump account. Once the first pilot program election is processed no
further election will be processed. This rule conforms with the section
6434(c)(2) requirement that an eligible child means a child with
respect to whom no prior pilot program election has been made. Because
this rule only applies once an election is processed, it would ensure
that an unprocessed erroneous or malicious pilot program election would
not preclude an eligible child from receiving a pilot program
contribution.
V. Manner of Election
Proposed Sec. 301.6434-1(e)(1) would provide that a pilot program
election must be made by a pilot program-electing individual 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. The IRS is using Form 4547, Trump Account
Election(s), for this purpose in calendar year 2026. A pilot program
election may be made any time during the period in proposed Sec.
301.6434-1(d)(1), including at the same time that the pilot program-
electing individual files such individual's Federal income tax return.
The pilot program election, however, is not a part of any individual's
tax return and is independent of the filing of a tax return. The IRS
has released instructions for making pilot program elections via Form
4547 and will provide instructions for making pilot program elections
via an electronic application or web page when made available by the
Secretary. Proposed Sec. 301.6434-1(e)(2) would reiterate the
requirement of section 6434(e) that an eligible child's social security
number is included with the pilot program election for that eligible
child. Because the length of time varies in which a social security
number may be obtained, this rule reinforces the broad pilot program
election timing proposed in Sec. 301.6434-1(d)(1).
Proposed Applicability Date
The regulations are proposed to apply 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 6434.
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 a Trump accounts
contribution pilot program election
[[Page 11208]]
under section 6434 of the Internal Revenue Code (Code). The proposed
regulations would also define terms for the purpose of implementing
section 6434, clarify the tax consequences of making a pilot program
election, and explain the time and manner of making a pilot program
election.
The Statute and the Proposed Regulations
Public Law 119-21, commonly known as the One, Big, Beautiful Bill
Act of 2025, added new sections 530A and 6434 to the Code. Section 530A
describes Trump accounts and section 6434 describes the Trump accounts
contribution pilot program. The proposed regulations explain how the
pilot program in section 6434 will be implemented.
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 rollover Trump
account. The entire balance of a Trump account may be rolled over in a
direct trustee-to-trustee transfer to an account established under a
section 529A \1\ ABLE program (ABLE account) of the account beneficiary
in the calendar year the account beneficiary attains age 17.
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\1\ Section 529A was enacted by the 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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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 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 for whom elections under section
6434 are made. 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.
The proposed regulations would define the following terms for the
purposes of implementing section 6434: eligible child, pilot program
election, pilot program-electing individual, and special taxable year.
A pilot program election is an election under section 6434, that is, a
request for a pilot program contribution to the eligible child's Trump
account. An eligible child is a U.S. citizen born in 2025, 2026, 2027,
or 2028, who has been issued a social security number, for whom no
pilot program election has previously been processed, and who is
anticipated by the pilot program-electing individual to be that
individual's qualifying child under section 152(c). A pilot program-
electing individual is an individual who is authorized to make a pilot
program election on behalf of an eligible child. The definitions of
eligible child and pilot program-electing individual incorporate the
following relationship: the pilot program-electing individual must
anticipate that the eligible child will be a qualifying child of the
individual for tax purposes for the taxable year in which the pilot
program election is made. A special taxable year is a taxable year of
the eligible child that is (1) created when a pilot program election is
processed, (2) deemed to close immediately after arising, (3) defined
to have zero tax liability, (4) distinct from any calendar-based
taxable year for the child's income tax liability, and (5) not
associated with any taxable period of the pilot program-electing
individual.
The proposed regulations would clarify the tax consequences of
making a pilot program election. Under the proposed regulations, when a
pilot program election is processed by the Secretary, the Secretary
would treat the eligible child as if the eligible child had made a
$1,000 payment for the special taxable year. Because a special taxable
year has zero tax liability, treating the child as if they had made a
$1,000 payment against Federal income tax would result in an
overpayment for the special taxable year. The IRS would not offset that
overpayment by any other debts owed by the eligible child or the pilot
program-electing individual. The Secretary would remit the full $1,000
overpayment for the special taxable year as a $1,000 pilot program
contribution to the Trump account of the eligible child.
The proposed regulations would also explain the time and manner of
making a pilot program election. A pilot program election would be made
by a pilot program-electing individual with respect to an eligible
child who the pilot program-electing individual anticipates will be the
individual's qualifying child under section 152(c) for the taxable year
of the individual during which the election is made. The first day a
pilot program election can be made is the day the child becomes an
eligible child, and the final day a pilot program election can be made
is the final day of the calendar year in which the child attains age
17. The pilot program election would be made on a form, electronic
application, or web page provided by the IRS. The pilot program
election would not be made on the pilot program-electing individual's
tax return.
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 15 million children
in 12 million families.
Economic Effects of the Proposed Regulations
The proposed regulations would make several choices that allow a
pilot program election to be made as early as a few weeks after the
birth of an eligible child instead of waiting until the following
calendar year. For example, for a child born in 2027, these choices
provide the opportunity to earn up to
[[Page 11209]]
one additional year of investment returns, depending on the child's
date of birth. The Treasury Department and the IRS used historical
returns for a broad index of U.S. equities to quantify the benefit of
an additional six months of investment returns by age 18.\2\ Among
birth cohorts from June 1926 to May 2007, the median difference in
account value at age 18 between $1,000 invested at birth and $1,000
invested six months after birth was $300.
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\2\ 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>.
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Qualifying Child Standard
The proposed regulations would clarify how to apply the statutory
requirement that the eligible child be a qualifying child of the pilot
program-electing individual. The proposed regulations would require a
pilot program election to be made by an individual who anticipates that
the eligible child will be a qualifying child for the year in which the
pilot program election is made. An alternative would be to require a
pilot program election to be made by an individual for whom the
eligible child was a qualifying child for a closed tax year. The
forward-looking standard would allow the pilot program election to be
made earlier than the backward-looking standard. For example, under the
forward-looking standard, an election for a child born in 2027 could be
made as soon as the child is issued a social security number. Under a
backward-looking standard, an election for a child born in 2027 could
not be made until 2028.
This choice and several others would allow a pilot program election
to be made as early as a few weeks after birth instead of waiting until
the following calendar year. For a child born in 2027, these choices
provide the opportunity to earn up to one additional year of investment
returns, depending on the child's date of birth. The Treasury
Department and the IRS used historical returns for a broad index of
U.S. equities to quantify the benefit of an additional six months of
investment returns by age 18.\3\ Among birth cohorts from June 1926 to
May 2007, the median difference in account value at age 18 between
$1,000 invested at birth and $1,000 invested six months after birth was
$300.
---------------------------------------------------------------------------
\3\ 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>.
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Taxable Period of Payment Against Tax
The proposed regulations would clarify the taxable period in which
the child is treated as making a $1,000 payment against tax. The
proposed regulations would apply the $1,000 payment to a special
taxable year that is created when a pilot program election is
processed, deemed to close immediately after arising, and defined to
have zero tax liability. An alternative would be to apply the $1,000
payment to an ordinary taxable year of the eligible child. Applying the
$1,000 payment to a special taxable year allows the refund to be
processed earlier, that is before the end of an ordinary taxable year.
This choice and several others would allow a pilot program election
to be made as early as a few weeks after birth instead of waiting until
the following calendar year. For example, for a child born in 2027,
these choices provide the opportunity to earn up to one additional year
of investment returns, depending on the child's date of birth. The
Treasury Department and the IRS used historical returns for a broad
index of U.S. equities to quantify the benefit of an additional six
months of investment returns by age 18.\4\ Among birth cohorts from
June 1926 to May 2007, the median difference in account value at age 18
between $1,000 invested at birth and $1,000 invested six months after
birth was $300.
---------------------------------------------------------------------------
\4\ 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>.
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Manner of Pilot Program Election
The proposed regulations would clarify how to make a pilot program
election. The proposed regulations would require a pilot program
election to be made on a form, electronic application, or web page.
Under the proposed regulations, a pilot program election could be made
at the same time as when a tax return is filed, but it would be on a
form that is independent from the pilot program-electing individual's
tax return. An alternative would be to require a pilot program election
to be made on the pilot program-electing individual's tax return.
Requiring the pilot program election to be made on a form that is
independent from the pilot program-electing individual's tax return
would allow the pilot program election to be made earlier than a pilot
program election made on a tax return.
This choice and several others would allow a pilot program election
to be made as early as a few weeks after birth instead of waiting until
the following calendar year. For example, for a child born in 2027,
these choices provide the opportunity to earn up to one additional year
of investment returns, depending on the child's date of birth. The
Treasury Department and the IRS used historical returns for a broad
index of U.S. equities to quantify the benefit of an additional six
months of investment returns by age 18.\5\ Among birth cohorts from
June 1926 to May 2007, the median difference in account value at age 18
between $1,000 invested at birth and $1,000 invested six months after
birth was $300.
---------------------------------------------------------------------------
\5\ 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>.
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Earliest Allowable Pilot Program Election
The proposed regulations would clarify the earliest a pilot program
election can be made. The proposed regulations would require a pilot
program election to be made no earlier than the day that a child
becomes eligible. An alternative would be to require a pilot program
election to be made no earlier than January 1 of the year after a child
becomes eligible. Allowing a pilot program election to be made as early
as the day that a child becomes eligible is possible because of three
other choices in the proposed regulations: (1) requiring a forward-
looking qualifying child standard, (2) applying the $1,000 payment to a
special taxable year, and (3) requiring the pilot program election to
be on a form independent from a tax return. The proposed regulations
made these choices to allow for the earliest possible pilot program
election allowable by statute, which is the day that the child becomes
eligible.
This choice and several others would allow a pilot program election
to be made as early as a few weeks after birth instead of waiting until
the following calendar year. For example, for a child born in 2027,
these choices provide the opportunity to earn up to one additional year
of investment returns, depending on the child's date of birth. The
Treasury Department and the IRS used historical returns for a broad
index of U.S. equities to quantify the benefit of an additional six
months of investment returns by age 18.\6\ Among birth cohorts from
June 1926 to May 2007, the median difference in account value at age 18
between $1,000 invested at birth and $1,000 invested six months after
birth was $300.
---------------------------------------------------------------------------
\6\ 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>.
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Latest Allowable Pilot Program Election
The proposed regulations would clarify the latest that a pilot
program election can be made. The proposed regulations would require a
pilot
[[Page 11210]]
program election to be made no later than December 31 of the year the
child attains age 17. An alternative would be to require a pilot
program election to be made no later than the year in which the child
attains age 3. Age 3 is salient because, in general, a refund can be
claimed no more than three years after a Federal return is filed.\7\
Age 17 is salient because it coincides with the end of the period when
a Trump account can be opened and the end of the growth period. Age 17
was chosen rather than age 3 to provide more time to make a pilot
program election. The proposed regulations would clarify that the
statute of limitations for claiming a refund is not relevant to the
pilot program election because (1) a pilot program election is not a
claim for a refund of an overpayment and (2) the $1,000 payment is
applied to a special taxable year, not to the year of birth or any
ordinary taxable year.
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\7\ <a href="https://www.irs.gov/filing/time-you-can-claim-a-credit-or-refund">https://www.irs.gov/filing/time-you-can-claim-a-credit-or-refund</a>.
---------------------------------------------------------------------------
Investment growth is generally maximized by making the investment
as early as possible. However, some pilot program-electing individuals
might not make a pilot program election as early as possible. One
benchmark for timely pilot program elections may be timely filing of
tax returns. Around ten percent of taxpayers who are required to file a
return fail to file a timely return.\8\ For example, for a child born
in 2027, the choice to require a pilot program election to be made no
later than December 31 of the year in which the child attains age 17
provides the opportunity to make the pilot program election as late as
2044. 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
returns on investments made at various ages.\9\ 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.
---------------------------------------------------------------------------
\8\ Langetieg, P., Payne, M. and Plumley, A., 2017. Counting
Elusive Nonfilers using IRS Rather than Census Data. Internal
Revenue Service Statistics of Income Working Paper.
\9\ 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>.
----------------------------------------------------------------------------------------------------------------
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
$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.
Prior Pilot Program Election Criterion
The proposed regulations would clarify how to apply the statutory
requirement that no prior pilot program election has been made for an
eligible child. The proposed regulations would specify that a prior
pilot program election is only disqualifying if the prior pilot program
election was processed by the Secretary. An alternative would be to
disqualify a child for whom a prior pilot program election was made
even if that prior pilot program election was not processed by the
Secretary. Specifying that a prior pilot program election is only
disqualifying if it was processed by the Secretary allows children who
are otherwise eligible to receive the pilot program contribution even
if an error was made on an initial pilot program election. The proposed
regulations propose this rule to avoid penalizing eligible children for
the behavior of individuals who improperly attempt to make pilot
program elections.
To assess the benefits of allowing a child for whom a pilot program
election was made but not processed to receive a $1,000 pilot program
contribution after a subsequent pilot program election is made
properly, the best evidence comes from a program in Oklahoma called
SEED OK. SEED OK generated experimental evidence by embedding a
randomized controlled trial into the design of the program. In 2007,
Oklahoma randomly selected Oklahoma families to participate in the SEED
OK program and, for newborns of consenting families randomly assigned
to the treatment group, automatically opened Oklahoma 529 accounts for
qualified higher education expenses and deposited $1,000. Four years
after the intervention, parents in the treatment group reported that
their children exhibited higher levels of social-emotional
development,\10\ mothers were more likely to be using mainstream
financial products,\11\ and mothers reported fewer depressive
symptoms.\12\ Thirteen years after the intervention, parents in the
treatment group had higher levels of educational
[[Page 11211]]
expectations and college preparation.\13\ Like other programs organized
or run by American states and cities that fund asset-building accounts
for young children, long-term outcomes on educational attainment,
employment, earnings, and wealth are not yet available for SEED OK
families because the oldest participants are still young adults.
---------------------------------------------------------------------------
\10\ Huang, J., Sherraden, M., Kim, Y. and Clancy, M., 2014.
Effects of Child Development Accounts on early social-emotional
development: An experimental test. JAMA pediatrics, 168(3), pp.265-
271.
\11\ Huang, J., Sherraden, M.S., Sherraden, M. and Johnson, L.,
2022. Experimental effects of child development accounts on
financial capability of young mothers. Journal of Family and
Economic Issues, 43(1), pp.36-50.
\12\ Huang, J., Sherraden, M. and Purnell, J.Q., 2014. Impacts
of Child Development Accounts on maternal depressive symptoms:
Evidence from a randomized statewide policy experiment. Social
Science & Medicine, 112, pp.30-38.
\13\ Sun, S., Huang, J. and Sherraden, M., 2025. The Long-Term
Impacts of Child Development Accounts on Parental Educational
Expectations and College Preparation. Social Service Review, 99(2).
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II. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) (PRA)
generally requires that a Federal agency obtain OMB approval before
collecting information from the public, whether that 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 it displays
a valid control number assigned by OMB.
These proposed regulations describe an election required under
section 6434 as set forth in proposed Sec. 301.6434-1 (pilot program
election). Specifically, section 6434(d) grants the Secretary the
authority to establish the time and manner of the pilot program
election and proposed Sec. 301.6434-1(e) would provide that the pilot
program election is made on a form prescribed by the Secretary or
through an electronic application or web page made available by the
Secretary, in accordance with applicable instructions. A taxpayer would
use such form or electronic application to make a pilot program
election for the Trump accounts contribution pilot program under
section 6434 and to establish eligibility. The information provided on
the form or electronic application will be used by the IRS for tax
compliance purposes and to determine election eligibility. The burden
associated with this election is included in Form 4547, Trump Account
Election(s), and its instructions and approved with OMB control number
1545-2336 in accordance with PRA procedures under 5 CFR 1320.10. The
Secretary may establish an electronic application or web page to
collect the same information. If established, the burden associated
with this electronic application will be included on the application
and approved by OMB in accordance with the same PRA procedures.
III. Regulatory Flexibility Act
The Secretary of the Treasury 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 affect
any individual who would like to make a pilot program election or
receive a $1,000 pilot program contribution. By statute, small entities
are not permitted to make a pilot program election or to receive a
$1,000 pilot program contribution. The proposed rules would not impose
any requirement or obligation upon small entities. Accordingly, a
regulatory flexibility analysis under the Regulatory Flexibility Act 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, 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 amendments to the final regulations are
adopted as final regulations, consideration will be given to any
comments that are timely submitted to the IRS as prescribed in this
preamble under the ADDRESSES heading. The Treasury Department and the
IRS request comments on all aspects of the proposed regulations. Any
comments submitted will be 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.
Drafting Information
The principal author of these proposed regulations is Molly E.
Lovern of the Office of Associate Chief Counsel (Procedure and
Administration). Other personnel from the Treasury Department and the
IRS participated in its development.
Lists of Subjects in 26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, the Treasury Department and IRS propose to amend 26
CFR part 301 as follows:
PART 301--PROCEDURE AND ADMINISTRATION
0
Paragraph 1. The authority citation for part 301 is amended by adding
an entry for Sec. 301.6434-1 in numerical order to read, in part, as
follows:
Authority: 26 U.S.C. 7805.
* * * * *
Section 301.6434-1 also issued under 26 U.S.C. 6434(d).
* * * * *
0
Par. 2. Section 301.6434-1 is added to read as follows:
Sec. 301.6434-1 Election for Trump accounts contribution pilot
program.
(a) In general. This section provides rules for the Trump accounts
contribution pilot program and pilot program election under section
6434 of the Internal Revenue Code (Code). A pilot program-electing
individual must make a pilot program election with
[[Page 11212]]
respect to an eligible child of such individual in order for the
Secretary to make a $1,000 contribution into the Trump account for
which such eligible child is the account beneficiary ($1,000 pilot
program contribution).
(b) Definitions. The following definitions apply solely for
purposes of this section.
(1) Eligible child. The term eligible child means an individual:
(i) Who the pilot program-electing individual anticipates will be
that individual's qualifying child under section 152(c) of the Code for
the taxable year of the pilot program-electing individual in which the
pilot program election is made;
(ii) Who is born after December 31, 2024, and before January 1,
2029;
(iii) Who is a United States citizen;
(iv) To whom a social security number has been issued; and
(v) With respect to whom no prior pilot program election has been
made by any individual and processed by the Secretary.
(2) Pilot program election. The term pilot program election means
an election under section 6434.
(3) Pilot program-electing individual. The term pilot program-
electing individual means an individual authorized to make a pilot
program election with respect to an eligible child. An individual is
authorized to make a pilot program election if the eligible child for
whom the pilot program election is to be made meets the requirements in
paragraph (b)(1)(i) of this section with respect to such individual.
(4) Secretary. The term Secretary means the Secretary of the
Treasury or the Secretary's delegate.
(5) Social security number. The term social security number has the
meaning given such term in section 24(h)(7)(B) of the Code, determined
by substituting ``before the date of the election made under section
6434'' for ``before the due date of such return'' in section
24(h)(7)(B)(ii).
(6) Special taxable year. The term special taxable year means a
taxable period of an eligible child for a Federal income tax liability
under subtitle A of the Code solely for the purposes of section 6434:
(i) That is deemed to arise solely upon the Secretary's processing
of a pilot program election with respect to the eligible child;
(ii) That is deemed to close immediately after arising;
(iii) For which no Federal income tax liability is owed; and
(iv) Which bears no relation to the Federal income tax liability of
the pilot program-electing individual for any taxable period.
(7) Trump account. The term Trump account has the meaning given
such term in section 530A(b)(1) of the Code.
(c) Effect of pilot program election--(1) In general. A pilot
program election must be made by a pilot program-electing individual
with respect to the special taxable year of an eligible child of the
pilot program-electing individual. A pilot program election has no
effect on any taxable period of the pilot program-electing individual.
(2) Deemed payment. Upon the Secretary's processing of a pilot
program election with respect to an eligible child, the eligible child
will be treated as making a payment in the amount of $1,000 against the
eligible child's Federal income tax liability under subtitle A of the
Code for the eligible child's special taxable year, resulting in a
$1,000 overpayment for the eligible child's special taxable year.
(3) Refund of overpayment as contribution. The $1,000 overpayment
described in paragraph (c)(2) of this section will only be refunded by
the Secretary as a $1,000 pilot program contribution directly to the
Trump account established with respect to the eligible child. Under no
circumstances will a refund be made under the provisions of section
6434 except as a $1,000 pilot program contribution to the Trump account
established with respect to the eligible child.
(4) Excepted from reduction or offset. The $1,000 overpayment
described in paragraph (c)(2) of this section will be refunded by the
Secretary as a $1,000 pilot program contribution to the Trump account
of the eligible child without being offset against past-due debts under
common law or section 6402(c), (d), (e), and (f) of the Code or
credited under section 6402(a) against any other assessed Federal tax
liabilities of the pilot program-electing individual or eligible child.
(5) Not a claim for credit or refund. A pilot program election does
not constitute a claim for credit or refund.
(d) Timing of election--(1) Election period. A pilot program
election must be made:
(i) No earlier than the day the eligible child meets the definition
of an eligible child under paragraph (b)(1) of this section; and
(ii) No later than December 31 of the calendar year in which the
eligible child attains age 17.
(2) Resolving multiple elections for an eligible child. Only the
first pilot program election processed by the Secretary with respect to
an eligible child will result in a $1,000 overpayment being refunded as
a $1,000 pilot program contribution by the Secretary into the Trump
account of such eligible child under paragraph (c)(3) of this section.
Once the Secretary processes the first pilot program election with
respect to an eligible child, no further pilot program elections for
such eligible child will be processed.
(3) 9100 relief not available. Relief is not available under
Sec. Sec. 301.9100-1, 301.9100-2, and 301.9100-3 to make a late pilot
program election under section 6434.
(e) Manner of making election--(1) In general. A pilot program
election must be made by a pilot program-electing individual 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 pilot program election will be processed
and no $1,000 pilot program contribution to a Trump account under
paragraph (c)(3) of this section will be made unless the pilot program-
electing individual makes the pilot program election in such manner.
(2) Social security number required. A pilot program election made
with respect to an eligible child must include the eligible child's
social security number. No pilot program election will be processed and
no $1,000 pilot program contribution to a Trump account under paragraph
(c)(3) of this section will be made unless such pilot program election
includes the eligible child's social security number.
(f) Applicability date. This section applies on or after January 1,
2026.
Frank J. Bisignano,
Chief Executive Officer.
[FR Doc. 2026-04534 Filed 3-6-26; 8:45 am]
BILLING CODE 4831-GV-P
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