Well, it’s not exactly a “chicken in every pot, and a car in every garage,” but the Treasury Department and the IRS are finally starting to translate Trump Accounts from slogan-ready statute into actual operating rules. As you might expect, however, their NPRM is only the first layer, and focuses on the front-end mechanics; those being, broadly – how an initial Trump Account gets opened, who may open it, and who controls it while the beneficiary is still a minor. To that end, the Treasury is seemingly leaving the heavier rules on contributions, investments, distributions, reporting, and IRA coordination for later guidance.
At a high level, the proposal treats a Trump Account as a “type of traditional IRA” for the “exclusive benefit” of an eligible child, with special rules during the child’s “growth period,” which lasts through December 31st of the year the beneficiary turns 17. During that period, distributions are generally barred, eligible investments have to follow a broad U.S. equity index and avoid leverage, fees are expected to remain low (specifically, “investments must avoid annual fees and expenses above 0.1%.”), and the account cannot function as a SIMPLE IRA or receive simplified employee pension (SEP) contributions. After the growth period, the account generally shifts into ordinary traditional IRA treatment (unless section 530A says otherwise).
Even if just perusing the proposed rule, you’d likely be able to tell that the election process is at the heart of this NPRM. The Treasury proposes that an initial Trump Account must be opened through the “simple and frictionless” process of filing a new Form 4547 or an IRS electronic application and that, again, the election must be made no later than December 31st of the year the child turns 17 (the IRS even issued separate guidance as to the Form 4547 Instructions, stating that this one-page form can be filed at “the time of filing [a] tax return.”
Moreover, the NPRM outlines that there are two related but distinct elections: one under section 530A to open an initial Trump Account, and a separate election under section 6434 for the one-time $1,000 pilot-program contribution. The two elections may be made at the same time, but importantly, that doesn’t necessarily make them the same. Because section 530A eligibility is broader than section 6434 eligibility, it appears that not every child eligible for a Trump Account will also qualify for the Treasury contribution.
The Treasury also proposes a priority (or “ordering”) rule for who may open the account. As in, if a pilot-program election is made at the same time, the authorized individual for that election may also open the account. But, if not, the order is legal guardian, parent, adult sibling, then grandparent (of the eligible individual). If multiple people exist in the same highest-priority category, any one of them may act. Apparently acknowledging that these kinds of family-priority rules are rarely without conflict, the Treasury is also asking for comment on harder family-structure questions, including foster children, wards of the state, emancipated minors, and whether key family terms would benefit from formal definitions.
The responsible-party rule is relatively simple (and potentially less rife for pushback). In general, the person who opens the initial Trump Account becomes the responsible party while the child lacks legal capacity, unless state law or the account agreement says otherwise. That person would generally be able to select among eligible investments, direct certain rollovers, and designate a successor responsible party.
Arguably, just as notable is what the Treasury is not proposing. Commenters urged automatic enrollment using tax-return or government data, but the Treasury said certain confidentiality-type restrictions under section 6103, along with banking, securities, and anti-money-laundering requirements, make that difficult under current law. So, at least for now, Trump Accounts appear likely to remain an election-based system, not an automatic one.
The IRS’s separate March 6 pilot-program guidance helps a bit to fill in the rules for the government’s one-time $1,000 contribution. To qualify, the child must be born in 2025, 2026, 2027, or 2028, be a U.S. citizen, have a Social Security number, and not already have had a prior pilot-program election processed. The same Form 4547 would be used for that election, and The Treasury says the pilot contribution would not count toward the annual contribution cap.
Remember – for those of you who parse through the entirety of the NPRM, it may help to go into it treating it as a “doorway rule,” in that it covers the front-end process for entry into the program (i.e., opening the account, who may act, and who initially controls it, etc.), but leaves many of the broader operational rules for later guidance.
Comments on the NPRM are due May 8, 2026, and with much of the broader compliance framework to come, this is yet another important one for public commentary.
Written by:
Brett Goodnack, JD, CAMS
Compliance Advisor