Treasury Issues Trump Account Temporary Regulations
The Department of Treasury and Internal Revenue Service (the Agencies) have issued temporary regulations providing guidance regarding general requirements for Trump accounts, the establishment of an initial Trump account (including automatic enrollment by the Secretary of the Treasury), and qualified general contributions (including qualified stock contributions) made to Trump accounts. These temporary regulations are effective upon publication in the Federal Register, apply to taxable years beginning on or after January 1, 2026, and expire three years after date of publication in the Federal Register. Concurrently, the Agencies are withdrawing proposed rulemaking issued March 9, 2026, and replacing with proposed regulations under Internal Revenue Code Section (IRC Sec.) 530A that are largely consistent with the temporary regulations.
The agencies note that after considering public comments and further addressing legal and operational issues associated with automatic enrollment, they have identified what they believe to be an ‘administrable structure’ to permit broad automatic enrollment. The Secretary (on or about October 1, 2026, and periodically thereafter), will make an election to establish an account for each individual who the Secretary has determined satisfies the age and social security number requirements and for whom no prior election has been made by a person other than the Secretary. The Agencies anticipate that such periodic elections will be frequent enough to generally eliminate the need for any election by a person other than the Secretary. A parent, guardian, legal custodian, or an adult beneficiary can claim an account automatically through Treasury's electronic process. Once claimed, control shifts from Treasury administration to the responsible party.
Additionally, the temporary regulations establish procedures for qualified general contributions which can be funded by governments, charities, and other eligible donors. While qualified general contributions must typically be made in cash to a Trump account, an exception applies for qualified stock contributions. The temporary regulations also prescribe rules regarding qualified stock contributions, including a minimum holding period requirement during which time the stock cannot be sold or liquidated. Qualified stock that is contributed to a Trump account may generally not be sold before the earlier of the date that is five years after the contribution to the account, or the end of the growth period for the account beneficiary of that account. There are four exceptions to this requirement: (1) qualified Achieving a Better Life Experience (ABLE) rollover contributions, (2) qualified rollover contributions when fractional shares cannot be transferred in kind, (3) transactions to accept a tender offer for the qualified stock at the direction of the responsible party, and (4) transactions resulting from the acquisition of the issuer of the qualified stock.
The Agencies contend that good cause exists for issuing temporary regulations without prior notice-and-comment because following notice-and-comment procedures before these regulations take effect would be impracticable and contrary to the public interest. Eligible individuals may not have an account in which to receive qualified general contributions or a $1,000 federal pilot program contribution (if a pilot program election has been made by a pilot program-electing individual), delaying access and shortening the growth period for investments. Delaying these rules would also prevent or significantly hinder broad-based contributions and require donors and trustees to defer implementation or proceed under uncertain terms. The temporary regulations are expected to increase the number of children who have Trump accounts in 2026 by more than 60 million.