Guidance Released on Trump Account Establishment, Pilot

The Department of Treasury and Internal Revenue Service have issued a proposed rule providing guidance on how an election to open a Trump account is made on behalf of an eligible individual, pursuant to the One Big Beautiful Bill Act and ahead of implementation later this year. Among other things, the rule defines an authorized individual for purposes of establishing a Trump account as a legal guardian, parent, adult sibling, or grandparent of the eligible individual, in that order of priority—and outlines their responsibilities along with special rules when an authorized individual must be replaced or is determined not to have been the responsible individual. 

A second proposed rule relates to the pilot program for $1,000 contributions on behalf of newborns during 2025-2028 that are U.S. citizens and have a valid Social Security number. The rule reiterates that an authorized individual must elect to have a Trump account established for the benefit of an eligible individual by making the election on Form 4547, Trump Account Election(s), or through an online tool or application (trumpaccounts.gov). However, the guidance specifies that the time period for making this election begins on the day the child becomes eligible and does not end until December 31 of the calendar year in which the child turns 17.

The agencies have indicated that separate guidance will follow addressing employer contribution features. Comments for the proposed rule on account establishment are due by May 8, 2026. Comments on the $1,000 pilot contribution program are due April 8, 2026. These proposed rules will be reviewed further, and additional details provided.