News Archive

"his document provides a notice of public hearing on the ... proposed regulations [for] making an election to open a Trump account ... The hearing is scheduled to be held on July 16, 2026, at 10:00 a.m. Eastern Time (ET). The IRS must receive speakers' outlines of the topics to be discussed by [10 days after publication in the Federal Register, which is currently scheduled for June 5, 2026]."  MORE >>

"The Trump Accounts app will be the main interface for the most historic policy for American families in decades and is available on all major mobile app stores.... The next phase of the Trump Accounts program will include account activation beginning for millions of American families ahead of the official launch on July 4, 2026. As of today, parents and legal guardians who have already signed their children up for Trump Accounts by submitting IRS Form 4547 will begin receiving emails with instructions to complete the account setup process. Activation e-mails for these families will be sent out in phases between now and July 4, 2026. "  MORE >>

"The Trump administration is weighing whether to allow contributions of appreciated stock directly into Section 530A 'Trump Accounts' ... Recent news coverage has described a potential 'double tax benefit' for wealthy donors who contribute appreciated shares. The reality, as set out in the statute itself, is more nuanced."  MORE >>

"The Oklahoma Dream Accounts Investment Program Act authorizes the State Treasurer to make a one-time $250 contribution into a Trump account of each eligible Oklahoma child, once a family applies and the account is verified."  MORE >>

"On April 15, 2026, the Department of Treasury announced 5 million Accounts had been opened.... Employers should also expect employees to ask whether they will be offering Account contributions as an employee benefit.Employers should be prepared to answer whether employees can contribute through their cafeteria plans.... Employers should also expect employees to ask whether they will be offering Account contributions as an employee benefit."  MORE >>

"File Form 5498-TA, Trump Account Contribution Information, with the IRS and furnish it to the account beneficiary for each Trump account you maintained during the calendar year shown on the form for any calendar year during the growth period of the account beneficiary. For any calendar year after the growth period of the account beneficiary, file Form 5498, IRA Contribution Information, with the IRS and furnish it to the account beneficiary."  MORE >>

"Tennessee Gov. Bill Lee (R) on May 1 signed into law legislation that authorizes the state of Tennessee to be a non-bank custodian for Trump Account funds.... The legislation began as a means to lay the groundwork for a state-run retirement plan that would have provided coverage for those whose private-sector employers do not offer a retirement plan. But that language was replaced by the current wording."  MORE >>

"[Sen. Ted Cruz (R-TX)], who helped create the program, likened employer contributions to a 401(k) match. Some employers have already said they'll contribute for employees' children, and philanthropists have pledged seed money. Cruz envisions a future where babies born this year will have millions saved in the accounts when they reach retirement age."  MORE >>

"Box 5 of 5498-TA calls for the 'Basis or investment in the contract,' an item that is absent on a standard 5498.... Since Trump Accounts can, and often will, contain post- and pre-tax money in the same account, tracking basis will be important for tax reporting and for rollovers.... The IRS is requesting feedback on this form[.]"  MORE >>

"While grandparents will be able to make contributions on behalf of grandchildren to Trump Accounts, IRS rules appear to strictly limit the circumstances where they can open up those accounts. Making matters worse, grandparents may be committing perjury without even knowing it when signing Form 4547 or using the website."  MORE >>

"The origination of the new Form 5498-TA is to comply with the requirements set forth in P.L. 119-21, Sec. 70204 and IRC Section 530A(i) which established Trump Accounts and contribution pilot programs. Form 5498-TA reports contributions, rollovers, basis or investment in the contract, and the fair market value (FMV) of the account for the calendar year shown on the form and is furnished by the trustee of the Trump account."  MORE >>

"Trump Accounts are a new form of traditional individual retirement account (IRA) that the 2025 reconciliation law (P.L. 119-21) created for the benefit of children. Savers will be able to contribute to Trump Accounts starting on July 4, 2026.... Anyone can contribute to a child's Trump Account, although individual contributions during the growth period are not tax-deductible for either the contributor or the beneficiary. Employers can contribute up to $2,500 (adjusted for inflation after 2027) tax-free to the Trump Accounts of employees or their dependents (amount is per employee, per year)."  MORE >>

"Legislation that would have laid the groundwork for a state-run retirement plan providing coverage for those whose private-sector employers do not offer a retirement plan had been coursing through both chambers of the Tennessee legislature. But not anymore -- that language has been replaced with wording that would instead authorize the state of Tennessee to serve as a non-bank custodian for Trump Account funds."  MORE >>

"The proposed rules don’t address employer contribution programs, employer “matching” the Treasury’s contribution, employee salary deductions, investments or ERISA matching considerations ... What do employers need to know? IRS and Treasury are encouraging parents to set up Trump accounts for their children. Parents must actively elect to open an account. Accounts must be set up before an employer can make contributions or deposit salary deductions."  MORE >>

"Under this designation, BNY will manage the initial accounts and help develop the new Trump Accounts app -- a secure, user-friendly platform that will enable families to easily access and manage their accounts. As part of this process, BNY has partnered with Robinhood, which will serve as brokerage and initial trustee for Trump Accounts. Together, these partners will support Treasury's goal of ensuring every eligible child can access a Trump Account quickly and easily."  MORE >>

"The proposed regulations would apply to tax years beginning on or after January 1, 2026, with final rules expected in early 2027.... The IRS has expressly reserved further rules governing contribution administration, investments, distributions, reporting, and employer contribution programs. As a result, Trump accounts are authorized but not fully operational and stakeholders should expect additional regulatory detail before broader program implementation can proceed."  MORE >>

"Employers interested in making contributions to Trump Accounts or facilitating employee contributions to Trump Accounts may wish to begin planning now to identify open questions as well as internal resources and assistance that may be needed from service providers, in particular if there is a desire to have a program in place under a cafeteria plan in time for open enrollment near the end of 2026."  MORE >>

"It remains to be seen what level of 'buy-in' will occur from individuals and employers. The initial funding of new accounts under the Treasury's pilot program might encourage parents to establish a Trump Account for their children to at least seed the accounts with those contributions. Trump Accounts also might be used as a wealth-transfer vehicle if parents and grandparents make contributions on behalf of their children and grandchildren."  MORE >>

"Trump accounts are set to launch in July ... However, many policy experts are already speculating on how they could be further integrated into the retirement system, such as using them to assist in account consolidation and to increase uptake of the Saver's Match."  MORE >>

"The Treasury Department and IRS recently released additional guidance related to these accounts within two coordinated notices of proposed rulemaking that address the critical threshold questions of [1] how Trump accounts are opened generally, and [2] how the one-time $1,000 government 'pilot program' contribution is deposited into the accounts of eligible children born from 2025 through 2028."  MORE >>

"Given the rules for setting up an Account and the annual contribution limitations, a child's family members and relatives should carefully coordinate their efforts to open Accounts, make contributions and elect the $1,000 pilot program contribution for the family's various eligible children. It may be helpful to submit comments on the need for guidance to mitigate excess contributions due to miscommunication among family members."  MORE >>

"Building upon predecessor guidance in Notice 2025-68, the proposed rules provide clarity around account eligibility, who is authorized to establish a TA, and how the establishment process works -- information employers who plan to offer a Trump Account Contribution Program (TACP) will need to successfully draft eligibility guidelines and determine what to include in their benefit communications to employees."  MORE >>

"While the [Notice 2025-68] and the Proposed Regulations provide important clarity on how Trump Accounts are opened ... several open questions still remain.... [1] Eligible investment; [2] Distributions during and after the Growth Period; [3] Reporting requirements for trustees and custodians ... [4] Nondiscrimination testing for Code Section 128 employer contribution programs; [5] Guidance exempting Trump Accounts from ERISA (similar to that of HSAs); [6] Coordination of salary reduction contributions with Code Section 125 rules."  MORE >>

"[T]he IRS has received several comment letters from investment managers and their advocates calling for greater diversification in the permitted investments, including more international exposure.... Meanwhile, Annamaria Lusardi, a finance professor at Stanford University ... argues that keeping the accounts simple -- rather than introducing complex global investing options -- will lead to better outcomes for first-time investors."  MORE >>

"[In proposed regs] the IRS explained that automatic enrollment will not work for Trump accounts, despite the urging of many commenters ... [T]here were two issues ... The first is that the administration of individual accounts is not the same as the defined contribution (DC) plans that have made wide use of auto-enrollment.... Secondly, the IRS said that it could not auto-enroll because it could violate tax privacy laws under Section 6103."  MORE >>