The IRS released proposed regulations Friday for “Trump Accounts,” tax-advantaged investment accounts for children created under legislation signed in January. The proposals describe how accounts would be opened and how some children could receive a one-time $1,000 federal contribution.

The IRS issued the proposals March 6 in two notices of rulemaking. Both are scheduled for publication in the Federal Register on March 9, with a 30-day public comment period for the pilot program and a 60-day comment period for the broader account rules.

Under the proposal, Trump Accounts would be a special type of traditional individual retirement account for children under age 18. A parent, guardian, or other authorized adult could open an account for a child with a Social Security number. The Treasury Department would create the account after receiving an election through a new IRS form or an online application that the IRS said is expected to launch in the second quarter of 2026.

The second notice outlines a pilot program that would provide a $1,000 government contribution for U.S. citizen children born between 2025 and 2028. The proposed rules describe how eligible families would make a pilot-program election, either with a tax return or separately. The contribution would be deposited into the child’s account, and the proposal states it cannot be redirected through offsets.

The proposed rules also describe contribution limits and permissible contributors. Annual contributions would generally be limited to $5,000 per child, although certain government or nonprofit contributions made through the Treasury would not count toward that cap. The proposal includes a separate framework for employer contributions, including limits and tax treatment.

The IRS proposal includes investment requirements during a “growth period” that runs through the end of the year the beneficiary turns 17. During that period, investments would be required to track broad U.S. equity indexes and meet limits on leverage and fees. The IRS said additional distribution and reporting rules are expected to be proposed later.

Trump Accounts were created under the American Families and Workers Empowerment Act of 2025, identified as H.R. 1, which President Trump signed January 20, 2026. The proposed regulations cite Section 530A of the tax code as the statutory basis for the accounts.

The IRS said the public can submit comments on the pilot program through April 8 and on the broader account rules through May 8 via Regulations.gov. The agency will review comments before issuing final rules.

Source: IRS Proposes Rules for ‘Trump Accounts’ | Plansponsor