The IRS will open Trump accounts automatically and has proposed new rules allowing private donors to fund large, class-based contributions to those accounts, including contributions of publicly traded stock. (T.D. 10056; Preamble to Prop Reg CC-00226466-26, 9/30/2026)
The One Big Beautiful Bill Act, P.L. 119-21, created Trump accounts under IRC § 530A, a type of traditional individual retirement account that can be opened for a child under age 18. Special rules on contributions, investments, and distributions apply during a “growth period” that ends December 31 of the calendar year in which the account beneficiary turns 17.
Temporary regulations
The IRS issued temporary regulations are effective September 30 and apply to tax years beginning on or after January 1, 2026. The agency invoked good cause to issue them without advance public comment, citing the need to make accounts available before children’s growth periods shorten.
Under the temporary regulations, on or about October 1, 2026, the IRS will elect to establish an “auto account” for each eligible child who has a Social Security number and for whom no one has already opened an account. The IRS estimates the approach will give Trump accounts to more than 60 million additional children in 2026 and affect 73 million children in 44 million families. The IRS will make periodic elections after that date for later-eligible children.
The temporary regulations depart from proposed regs issued in March that declined to adopt broad automatic enrollment. Many commenters on that proposal had urged automatic enrollment, warning that an opt-in process would leave out families unfamiliar with tax filing. The earlier proposal concluded the IRS could not open and operate the accounts without disclosing taxpayer information protected under IRC § 6103.
According to the IRS, the new approach resolves that concern through a “master group trust” that holds auto account investments collectively, allowing the trustee to transact without disclosing account-identifying return information. The IRS said the change reflects a different administrative structure rather than a new interpretation of its statutory authority.
Because the accounts open without family involvement, a guardian, a legal custodian, or a beneficiary who has legal capacity must “claim” an auto account to control it. Claiming requires the person to verify their identity and establish authority under § 6103 to receive the beneficiary’s return information, after which the balance transfers to a claimed initial Trump account or a rollover Trump account.
Contributions and qualified stock
During the growth period, an auto account can accept only qualified general contributions and the $1,000 pilot program contribution available under IRC § 6434 for certain children born from 2025 through 2028. Qualified general contributions are funded by governments or tax-exempt organizations, routed through the IRS, and distributed in equal amounts to every account beneficiary in a qualified class.
A qualified class is defined by age or geography, and an “approved class” combines both criteria; each class must include at least 5,000 beneficiaries. An auto account’s only investment is its interest in the master group trust.
The temporary regulations also let these contributions be made in publicly traded stock of a domestic corporation. Contributed stock generally must be held for the earlier of five years or the end of the growth period, subject to exceptions. The IRS cited a pledged $6.25 billion contribution from the Michael & Susan Dell Foundation as evidence of donor interest.
Companion proposal and withdrawal
Alongside the temporary regulations, the IRS issued a companion notice of proposed rulemaking containing the same substantive text and withdrew the March proposal (REG-117270-25). Taxpayers cannot rely on the proposal and instead follow the temporary regulations.
The proposal requests comments on qualified ABLE rollover contributions from auto accounts, standards for designating qualified geographic areas, possible exceptions to the stock holding period, and whether beneficiaries can disclaim an auto account. Comments are due November 29, 2026.
Hearing moved to telephone
Separately, the IRS moved a public hearing on a different set of proposed rules (REG-101355-26) to a telephonic-only format. Those rules would govern employer contributions to Trump accounts under IRC § 128 and the nondiscrimination rules for dependent care assistance programs.
The hearing remains set for October 15, 2026, at 10 a.m. ET, and requests to attend must be received by 5 p.m. ET on October 12, 2026.
For more on Trump account contributions, see Checkpoint’s Federal Tax Coordinator 2d ¶ A-4654.
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