IRS Issues Guidance For ‘Trump Accounts’ For Children

Posted: Dec 10 2025

The IRS and Treasury Department have published guidance and announced plans to issue regulations for “Trump Accounts,” which are a new type of individual retirement account for children created by Congress earlier this year.

Parents and guardians can create Trump Accounts for children under 18, although contributions to the accounts cannot be made before July 4, 2026, and are limited to $5,000 annually in aggregate, according to the IRS. The federal government will also make a one-time $1,000 pilot program contribution to the account for each eligible child if they are a U.S. citizen born on or after Jan. 1, 2025, through Dec. 31, 2028. Certain governmental entities and charities may also make qualified general contributions to the accounts. Employers may contribute to an employee’s or employee dependent’s Trump Account up to $2,500 (counts against annual aggregate limit), and the contribution will not count towards the employee’s taxable income.

The IRS has posted a draft version of Form 4547, Trump Account Election(s), that will be used to establish a Trump Account and to enroll in the pilot program. The agency is also seeking public comments on forthcoming proposed regulations to implement the accounts, with comments due by Feb. 20, 2026.

To view the guidance, visit: https://www.irs.gov/pub/irs-drop/n-25-68.pdf