Background

Trump accounts were created under newly enacted IRC Sec. 530A as part of the One Big Beautiful Bill Act. They are a new type of traditional IRA designed specifically for minors, with special rules that apply while the beneficiary is a child.

The IRS recently released proposed regulations implementing “Trump Accounts,” created under the 2025 tax legislation.

The proposed rules primarily address how accounts are opened, who may act as the responsible party, and how the government’s $1,000 pilot contribution for children born between 2025 and 2028 will be administered.

For employers, the underlying law allows employer contributions of up to $2,500 annually per employee, and earlier IRS guidance indicates employers may eventually allow salary-reduction contributions through a §125 cafeteria plan to fund a dependent child’s Trump Account. However, the newly proposed regulations largely reserve those employer-specific details for future guidance.

Additional rules are expected addressing employer contribution programs, cafeteria plan coordination, and potential ERISA implications.

Resources

• IRS - Trump Accounts
• Trump Accounts - Jumpstarting the American Dream
• IRS - 4 million children have been signed up for Trump Accounts
• IRS Form 4547 - Trump Account Election Form

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