WASHINGTON, D.C. — The Treasury Department and Internal Revenue Service unveiled new guidance this week on the launch of “Trump Accounts,” a forthcoming class of individual retirement accounts for eligible children that federal officials say could reshape long-term household savings.
In Notice 2025-68, released Tuesday, the IRS outlined how the accounts will function when contributions open on July 4, 2026. The framework details rules for establishing accounts, receiving federal and private contributions, rollover procedures, investment requirements, distribution restrictions, and how Trump Accounts will interact with existing IRA regulations.
The Working Families Tax Cuts law authorizes the creation of a Trump Account for any eligible child under age 18 when a parent or guardian makes an election. For children born between January 1, 2025, and December 31, 2028, the federal government will make a one-time $1,000 pilot program contribution, provided the child is a U.S. citizen and an election is filed.
Additional contributions can come from several sources. Governmental entities and charities may contribute to a qualified class of account holders. Parents, relatives, or other individuals may add up to $5,000 per year, while employers may contribute up to $2,500 annually toward an employee’s or dependent’s account. Employer contributions will not count toward taxable income and apply to the overall annual limit. All limits will be indexed to inflation beginning in 2028.
Trump Account funds must be invested in mutual funds or exchange-traded funds that track the S&P 500 or other indexes composed primarily of American equities. Withdrawals are generally prohibited until January 1 of the year in which the beneficiary turns 18, at which point the account becomes subject to traditional IRA rules.
The IRS also released a draft version of Form 4547, which will be used to establish Trump Accounts and enroll families in the pilot program when finalized. Officials are soliciting public comments on administrative and technical issues as the regulatory process moves forward. More information is available at IRS.gov and trumpaccounts.gov.
In a separate announcement Wednesday, the IRS opened the 10th National Tax Security Awareness Week, warning taxpayers and tax professionals of heightened risks posed by identity thieves during the holidays and the approaching tax season.
Security Summit partners — a coalition of the IRS, state tax agencies, software developers, and tax industry groups — say their coordinated defenses have blocked millions of fraudulent returns and prevented billions of dollars in losses since the group formed. But criminals continue to evolve, increasingly targeting the personal financial data of individuals, businesses, and practitioners.
“With the holiday shopping season underway and tax season quickly approaching, we are urging taxpayers and tax professionals to take extra steps to protect their financial and tax information,” said IRS CEO Frank Bisignano. He said identity thieves often impersonate the IRS or charitable organizations through fake emails, texts, and online messages designed to coax people into sharing sensitive data.
The IRS highlighted several high-risk areas, including social-media tax scams, phishing and smishing attempts, and schemes targeting seniors. Tax professionals are also reminded of their legal obligation to maintain Written Information Security Plans and employ multi-factor authentication.
Officials encouraged taxpayers to consider obtaining an Identity Protection PIN, a six-digit code that prevents unauthorized tax filings made using a person’s Social Security number or taxpayer identification number.
The IRS and its partners plan to expand public education efforts through the Coalition Against Scam and Scheme Threats as tax season nears.
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