The IRS released proposed regulations detailing how to elect open a Trump account on behalf of an eligible beneficiary and how to receive a one-time $1,000 pilot program contribution. (IR 2021-31, IR 2026-33, 3/6/2026; Preamble to Prop Reg REG-117270-25, Preamble to Prop Reg REG-117002-25; 3/9/2026)
Background
The One Big Beautiful Bill Act (OBBB) established the Trump account, a tax-advantaged account that can be opened on behalf of eligible individuals under age 18. A Trump account is a type of individual retirement account (IRA) with special rules regarding contributions, investments, distributions, and reporting that apply during the “growth period” – the period ending on December 31 of the calendar year in which the account beneficiary attains age 17.
The OBBB also provided for Treasury to make one-time pilot contributions of $1,000 to Trump accounts opened on behalf of U.S. citizen children born in 2025 – 2028. In addition to pilot contributions, Trump accounts can be funded via nonprofit and government qualified general contributions, employer contributions, qualified rollover contributions, and contributions from the accountholder’s parents or others.
Trump Account Elections
The proposed regs details requirements for making an election to open a Trump account, as described under IRC § 530A. The regs specify that an election can be made by an “authorized individual” or the Treasury secretary. If an election to receive a pilot program contribution is made at the same time as an election to open an account, the authorized individual is the individual authorized to make the election for a pilot program contribution under IRC § 6434.
For accounts opened where no pilot contribution is elected, the proposed regs provide an “ordering rule” to determine the authorized individual. In order of priority, the authorized individual is the child’s legal guardian, parent, adult sibling, or grandparent. Under the proposed rules, the individual electing to open the account on behalf of a beneficiary must represent, under penalty of perjury, that there is no person with higher priority available to make the election.
The rules also provide that if an election was made by an individual who was not an authorized individual, the Treasury secretary “is deemed to have made the election to open the initial Trump account.” If the person who is the responsible party for a Trump account needs to be replaced, the proposed rules specify that applicable state and federal law or the account agreement will govern removal and replacement.
As previously announced in Notice 2025-68, authorized individuals can make a Trump account election via Form 4547. Elections can also be made via an electronic application or webpage. While the election can be made at the same time as the authorized individual files their taxes, the proposed rules clarify that the election is not part of the tax return.
The IRS requests comments on whether the terms “legal guardian,” “parent,” “sibling,” and “grandparent” need further clarification and on whether other individuals with a relationship to the child should be included in the list of authorized individuals. In addition, the IRS asks for comments on who may be the authorized individual for foster children, orphans, emancipated minors, and wards of the state.
Several commenters requested the IRS automatically enroll all or certain eligible beneficiaries via the Treasury secretary’s statutorily provided authority to elect to open accounts. The proposed rules, however, do not take this approach. The IRS explains that that the Treasury secretary “would be unable to fulfill certain requirements to open and operate a Trump account without disclosure of taxpayer information,” in violation of IRC § 6103.
Comments and requests for a public hearing on the Trump account election proposed regulations are due May 8. Comments can be submitted electronically via the Federal eRulemaking Portal (indicate IRS and REG-117270-25).
Pilot Program Contributions
In a concurrent proposed rule, the IRS describes how it will implement IRC § 6434, which provides for a one-time $1,000 contribution from Treasury to the Trump account of certain individuals.
The regs require that a “pilot program-electing individual” make an election for an eligible child to receive the $1,000 contribution. A pilot program-electing individual is the individual who anticipates the eligible child will be their “qualifying child” under IRC § 152(c) for the tax year. Under the rules, the pilot program-electing individual can make the election at any time during a calendar year, rather than awaiting the end of the tax year.
A pilot program election for an eligible child may be made until December 31 of the calendar year in which the eligible child reaches age 17. The IRS indicates this broad range is intended to ensure all eligible children can receive the $1,000 contribution.
When a pilot program election is made, the eligible child will be treated as making a $1,000 payment against a federal income tax liability, resulting in a $1,000 overpayment. The overpayment will then be refunded as a pilot program contribution to the child’s Trump account. Because overpayment amounts can be offset by taxes owed, but the statute requires a full $1,000 payment to a child’s Trump account, the regs provide that the pilot program election is made for the child’s “special taxable year” rather than the calendar year.
No refund will be paid except as a contribution to the child’s Trump account. If a pilot program election is made for a child who does not have a Trump account, the rules provide that the $1,000 overpayment will not be refunded. Finally, the rules specify that a pilot program election is not a claim for credit or refund.
Pilot program elections can be made via Form 4547 or an electronic application or webpage. Per the proposed rules, the election is not part of an individual’s tax return.
Comments and requests for a public hearing on pilot program contributions are due April 8. Comments can be submitted electronically via the Federal eRulemaking Portal (indicate IRS and REG-117002-25).
For more on Trump accounts, see Checkpoint’s Federal Tax Coordinator 2d ¶ A-4650.
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