Trump Account Information
The IRS on Dec. 3 issued Notice 2025-68 (PDF – 221.97 KB), providing the first guidance on Trump accounts, a new type of tax-advantaged savings account for children created under the One Big Beautiful Bill Act (OBBBA). Trump accounts will become available in 2026, with a pilot program covering eligible children born between 2025 and 2028. However, no contributions may be made until July 4, 2026.
Trump accounts will generally operate like traditional individual retirement accounts (IRAs) for eligible minors and will be subject to an annual aggregate contribution limit of $5,000, adjusted for inflation after 2027. In addition, each qualifying child born after Dec. 31, 2024, and before Jan. 1, 2029, will receive a one-time federal contribution of $1,000, which will not count toward the annual contribution limit.
Notice 2025-68 outlines how the accounts will operate and highlights several differences from traditional IRAs. For example, account assets must be invested in broad U.S. equity index funds, and withdrawals generally are prohibited until the child reaches age 18. After that, the account will be governed by the rules applicable to a traditional IRA.
The notice serves as an initial overview of the new program, announcing forthcoming proposed regulations and introducing draft Form 4547, which taxpayers will use to elect and establish Trump accounts. The IRS indicates that additional guidance, including reporting forms and more detailed rules, will be issued in the future. More information is also available at TrumpAccounts.gov.
The guidance also confirms that employer contributions to Trump accounts are permitted under the new law. Employers may contribute up to $2,500 annually to the Trump account of an employee or an employee's dependent without creating taxable income for the employee. The $2,500 limit applies on a per-employee basis, regardless of the number of eligible dependents.
In addition, employers may offer Trump account contributions through a Section 125 cafeteria plan on a salary reduction basis if the contributions are made to the Trump