Trump Accounts

Contribution rules

Total contributions to a Trump Account — other than a short list of exempt contributions (rollovers, qualified general contributions, the pilot deposit) — are capped at $5,000 a year, nondeductible, until the year the beneficiary turns 18. That cap is indexed for inflation starting after 2027. Parents, the child, or any other person can contribute, as can qualified charitable and tax-exempt organizations, and employers may contribute up to $2,500 a year on an employee's behalf — that amount counts toward the same $5,000 cap and is excludable from the employee's taxable income. The $2,500 employer limit is indexed on the same schedule as the $5,000 cap, for taxable years beginning after 2027.

The statute barred contributions before July 4, 2026 — its one-year delay from OBBBA's enactment date. Separately, the Treasury Department is making a one-time $1,000 pilot-program deposit into the account of every eligible child born between January 1, 2025 and December 31, 2028, once a parent or guardian files an election on IRS Form 4547. That $1,000 deposit doesn't count against the $5,000 annual cap.

Before the calendar year in which the beneficiary turns 18, the statute (§530A(b)(3)) restricts the account's investments to mutual funds or exchange-traded funds that use no leverage, charge annual fees and expenses of no more than 0.1 percent, and track the S&P 500 or another qualifying index of equity investments in primarily United States companies — not a self-directed brokerage account.

Distribution rules

No distribution is allowed before the first day of the calendar year in which the beneficiary turns 18, with a short list of exceptions: correcting an excess contribution, the beneficiary's death, a qualified rollover of the entire balance to an ABLE account, allowed only during the calendar year in which the beneficiary turns 17, and a qualified rollover to another Trump Account. After the beneficiary turns 18, the account is a traditional IRA and ordinary IRA distribution rules — including the usual early-withdrawal exceptions — apply from that point forward.

A note on a common claim that doesn't check out: several secondary summaries describe extra milestones at age 25 (a cap on how much of the balance can come out before then) and age 31 (mandatory full distribution, account termination). Neither appears anywhere in 26 U.S.C. § 530A. The only age threshold the statute sets is 18 — everything past that point runs on ordinary IRA rules, with no special Trump Account provision kicking back in at 25 or 31.

Current guidance status

Treasury issued temporary regulations on Trump accounts on September 30, 2026 (TD 10056, 91 FR 61705); it has not yet issued final regulations. Notice 2025-68 (December 2, 2025) gave preliminary guidance and announced upcoming regulations. Treasury proposed regulations on the election to open an account on March 9, 2026 (REG-117270-25, 91 FR 11194), then withdrew and reproposed them on September 30, 2026 (91 FR 61812) alongside the temporary regulations. Treasury also proposed regulations in August 2026 on eligible investments and on employer contributions. Temporary regulations bind now; proposed regulations do not, and Treasury can change them before it finalizes them. Trump Accounts have accepted contributions since July 4, 2026, so check the current text before relying on any proposed rule.

Coming to this library

This hub is the first page in a Trump Accounts library. Pages marked Live are published; the rest are not yet published:

• State tax treatmentLive — all 50 states and DC
• California treatment (flagship state page)Live
• Employer Nondiscrimination TestLive
• Gift-tax interaction checkerIn progress
• Contribution trackersIn progress
• Reporting and tax-form guidanceIn progress
• Employer and tax-pro checklistsIn progress