On December 2, 2025, the IRS issued Notice 2025-68 to provide a general overview of how Trump Accounts will work, and to address initial questions about eligible investments, distributions, reporting, and coordination with the rules applicable to other types of Individual Retirement Accounts.
Key Rules
Trump Accounts may be established in 2026, using IRS Form 4547, for any child though age 17. The contribution limit will be $5,000 per child. Contributions may begin after July 4, 2026. Distributions from Trump Accounts generally will not be permitted until the year the child turns 18. At that point, the account will be treated similarly to a traditional IRA, so that distributions will be taxable and potentially subject to penalties if the account owner is younger than 59 ½. There will be no tax deductions for contributions to Trump Accounts, but the account will grow tax deferred until distributions begin. The accounts will be invested in certain mutual funds or exchange-traded funds that track the S&P 500 or another index of primarily American stocks.
Seed Money
Seed money. To encourage rapid adoption the Trump Accounts, the federal government will make a one-time $1,000 contribution to the Trump Account of each eligible child born on or after January 1, 2025 through December 31, 2028. The child must have a Social Security number to be eligible.
In December Michael and Susan Dell announced they would contribution $250 to Trump Accounts for some of the children who are not eligible for the $1,000 seed money from the federal government, that is, the children born in the U.S.A. before January 1, 2025 who are up to 10 years old. The gift will be limited to zip codes where the median income is below $150,000. An estimated 25 million children could potentially receive this benefit, according to press releases. The pledge from the Dells is $6 billion. If the money is not used up by the younger kids, the Dells may extend the program to children older than 10.
The Dells also announced Dell Technologies would match the $1,000 government contribution to Trump Accounts for their employees, and other companies may follow that lead.
Summary
The idea is to put the American economy to work for the younger generation, to let them participate directly in its growth, to engage them in the dynamics of the capital markets. Doubtless there will be much more to come about Trump Accounts in 2026.
(December 2025)
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