The IRS on March 6, 2026, proposed regulations that would provide the core administrative framework for launching Trump accounts, a new type of individual retirement account (IRA) for eligible children created by the OBBBA under new Section 530A.
One set of proposed rules focuses on how accounts may be opened and how authorized individuals can act on behalf of eligible children. The other set of proposed rules focuses on a pilot program whereby the U.S. Treasury will make a one-time, $1,000 contribution to such accounts for U.S. citizens born in 2025, 2026, 2027, or 2028 who have valid Social Security numbers.
Although Trump accounts cannot be established before July 4, 2026, the IRS issued initial guidance in December 2025 and will continue to issue more guidance. For prior coverage, see Initial Guidance for OBBBA Trump Accounts Issued.
Trump accounts established under Section 530A are subject to special rules on contributions, investments, and reporting during the “growth period,” which begins when the Trump account is established and ends on December 31 of the calendar year in which the beneficiary attains age 17. During the growth period, Trump account beneficiaries are not required to have any includible compensation to receive contributions (unlike other types of IRAs, which require the IRA owner to have includible compensation). After the growth period, most of the special rules no longer apply, and the account essentially becomes an IRA.
Who Can Open an Account?
The proposed regulations establish a clear priority order to determine who can open an account for an eligible child. The ordering rule gives the highest priority to a legal guardian, followed by a parent, adult sibling, and grandparent — each required to certify that no higher priority individual is available when opening such an account. An eligible child is (1) any individual 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; (2) for whom a Social Security number has been issued before the date of the initial Trump account election; and (3) for whom the initial Trump account election is made. Each eligible child can have only one Trump account.
The IRS clarified that auto enrollment is not permissible under existing law due to both the individualized administrative requirements of opening IRA type accounts and long standing taxpayer privacy rules that prevent Treasury from accessing or sharing the information necessary to automatically open accounts. To protect beneficiaries, the proposed rules clarify that if an unauthorized individual opens an account, the election will be treated as if made by the Treasury secretary, so that the account remains valid and unaffected.
How Will the Treasury Deposit the $1,000 Under the Pilot Program?
The proposed rules also explain how the government’s $1,000 pilot program contribution for children born between 2025 and 2028 will be delivered. To guarantee that every eligible child receives the full contribution (and only one contribution), the IRS created a “special taxable year” mechanism that treats the child as having made a $1,000 payment, resulting in a refundable overpayment that Treasury deposits directly into the Trump account. This structure prevents the contribution from being offset against other tax liabilities or refunded to an adult rather than the account. The election to receive the pilot contribution may be made by the individual who expects the child to be their qualifying child, and it can be submitted anytime up to December 31 of the year the child turns 17. If a Trump account does not exist at the time of the election, the contribution will not be issued.
What Further Guidance is Still Needed?
While the proposed regulations answer foundational questions on elections, responsible parties, and pilot contribution procedures, they do not provide guidance on several important areas. Still pending are rules regarding employer contributions under Section 128 (capped at $2,500 annually), including how nondiscrimination requirements should apply (similar to Section 129 dependent care assistance plans) and whether employer facilitated Trump account programs could trigger ERISA plan status. Additionally, broader operational questions — such as investment rules, distribution mechanics, and long term oversight of accounts — remain open. Treasury has indicated that additional guidance will be released in future phases, leaving employers, plan sponsors, and practitioners awaiting clarity on how the program will function beyond its initial election and funding mechanics.
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