The IRS has issued temporary regulations directing the Treasury Department to automatically open Trump accounts (“auto accounts”) for eligible children who don’t already have one. (Temp. Treas. Regs. §1.530A-1T) The temporary regulations are effective September 30, 2026, and apply to taxable years beginning on or after January 1, 2026.
The Treasury will open the first round on or about October 1, 2026, and periodically after that, so in most cases no one else will need to open an account.
The child’s guardian or legal custodian (or the child after acquiring legal capacity) must then claim the auto account. They must authenticate their identity, establish their authority as a guardian or legal custodian, and provide any required consent under procedures to be determined by the Department of the Treasury.
If an auto account is claimed during the growth period, then the entire account balance will be transferred, trustee-to-trustee, to a claimed initial Trump account or rollover Trump account. If an auto account is claimed after the growth period, then the auto account balance will be transferred to a traditional IRA account.
These auto accounts also have their own subset of rules regarding contributions and investments. Under these special rules, auto account funds can only be invested in a Treasury-established master group trust and can only receive two types of contributions:
- Qualified general contributions; and
- A one-time $1,000 pilot program contribution (if the child is eligible).
It’s important to note that the $1,000 contribution for eligible children will not be automatic. An election to receive a pilot program contribution still must be made by an authorized individual using IRS Form 4547 or through the authorized individual’s IRS account online.
Sign up for Spidell’s 2026/2027 Federal and California Tax Update webinar and get information on the most important issues facing your practice. Click here and register today.
Sign up for Spidell’s Flash E-mail — Get breaking news delivered to your inbox, plus other free analysis and information for tax professionals. Join our community and stay at the top of your game. Click here to sign up.
