The Internal Revenue Service issued proposed regulations Friday providing guidance regarding the pilot program for Trump Accounts, a new type of individual retirement account for eligible children.
The proposed regs lay out how the Treasury secretary will make "one-time $1,000 pilot program contributions to the Trump Accounts of eligible children for whom elections have been made," IRS and Treasury said in a statement. The proposed regs "provide guidance regarding the effects of making an election for an eligible child to receive a $1,000 contribution and define other qualifications."
The proposal is out for comment until 30 days after its publication in the Federal Register, which is expected March 9.
The proposed regs detail how the pilot program will function, Jeff Bush of The Washington Update said Friday in an email.
"To receive the contribution, a parent or guardian must elect to establish a Trump Account for a qualifying child and submit the necessary election to the Treasury Department," Bush added.
Eligible children must be U.S. citizens born between 2025 and 2028, have a Social Security number and not have had an election processed for them previously.
"In some cases, expecting parents may file the election before the child's birth if they expect the child to qualify in the relevant tax year," according to Bush.
Trump Accounts and the Trump Account Pilot Program were established under the One Big Beautiful Bill Act, enacted last July 4.
Frank Bisignano, CEO of the IRS, told House lawmakers Wednesday that the agency has received 2 million requests for Forms 4547, which taxpayers will need to file to open a Trump account. The IRS is busy ensuring that "everyone has all the information they need well in advance" of the July 4 start date for Trump account contributions, he said.
"I still believe there was little need for an additional savings program for children," Bush said. "It seems we could have achieved similar results by adjusting some rules for 529s and IRAs to allow a one-time government contribution of $1,000 for designated beneficiaries."
Credit: Chris Nicholls/Touchpoint Markets
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