The Internal Revenue Service (IRS) issued Notice 2025-68 (the Notice), which provides guidance related to Trump accounts. Outlined below is a brief overview, highlights of the Notice, and how to submit comments to the IRS regarding Trump accounts.

The One, Big, Beautiful, Bill Act (OBBB), signed into law on July 4, 2025, includes a statute creating a tax-advantaged children’s saving account referred to as Trump accounts. Defined as a type of traditional individual retirement account (IRA), Trump accounts are established for eligible individuals who have not attained age 18 before the close of the calendar year in which an election is made to establish such account.

A limit of $5,000 per child can be contributed annually to a Trump account, subject to cost-of-living adjustments. Upon election, children born between 2025-2028 will qualify for a one-time deposit of $1,000 from the federal government (referred to as a pilot program contribution). Other qualifying individuals can contribute until the child turns 18. Trump accounts are effective for taxable years beginning after December 31, 2025.

• An authorized individual may elect to have a Trump account established for the benefit of an eligible individual by making the election on IRS Form 4547 or through an online tool or application on trumpaccounts.gov.
• Contributions to Trump accounts can include, but are not limited to, a pilot program contribution, contributions from parents, guardians, or other persons, and contributions from employers.
• Contributions to Trump accounts cannot be made before July 4, 2026.
• An employer can contribute to the Trump account of an employee or a dependent of an employee through a section 128 contribution.
• A Trump account contribution program may be offered by an employer via salary reduction under a section 125 cafeteria plan if the contribution is made to the Trump account of the employee’s dependent but not if the contribution is made to the Trump account of the employee.
  • Note that the Treasury Department and the IRS intend to address rules related to the coordination of Trump account contribution programs and section 125 cafeteria plans in proposed regulations.
• The Notice also covers restrictions on distributions from Trump accounts, methods in which funds can be rolled over within Trump accounts, permissible investments, tax reporting requirements, and other topics.