New IRS Proposal Details $1,000 Pilot Program for Children’s Trump Accounts

On March 6, 2026, the U.S. Treasury and IRS released proposed rules for a new $1,000 pilot program tied to “Trump Accounts,” a tax-favored savings account for children under 18 created by the One Big Beautiful Bill Act (OBBBA).

Under the proposal, children born between 2025 and 2028 could receive a one-time $1,000 federal contribution to their Trump Account if certain requirements are met, and the rules outline how the IRS would administer these contributions.

Overview of Trump Accounts

Trump Accounts are a new type of individual retirement account (IRA) designed to help families save for a child’s future. Beginning July 4, 2026, anyone, including parents, grandparents, employers, or other contributors, can contribute up to $5,000 per year (with cost-of-living increases after 2027). Certain deposits, such as the federal government’s $1,000 pilot contribution, do not count toward this limit.

For tax purposes, Trump Accounts generally follow traditional IRA rules, with special provisions during a “growth period” that lasts until December 31 of the year before the child turns 18.

Employers may also contribute through a formal Trump Account Contribution Program under Internal Revenue Code Section 128(c). These employer contributions, up to $2,500 per employee per year, indexed after 2027, are excluded from the employee’s taxable income if the program follows written plan guidelines and meets specific nondiscrimination, eligibility, notice, and benefit requirements similar to dependent care assistance programs.

Pilot Program for $1,000 Contributions

To receive a $1,000 federal pilot contribution for an eligible child’s Trump Account, a parent or other qualifying individual must:

• Expect the child to be their “qualifying child” under IRS Code Section 152(c) for the year of the election;
• Open a Trump Account for the child; and
• File new IRS Form 4547 (Trump Account Election(s)) to both open the account and elect the $1,000 pilot contribution.

The child must:

• Be expected to qualify as the filer’s child for that tax year;
• Be born between January 1, 2025, and December 31, 2028;
• Not have already received a pilot contribution election; and
• Be a U.S. citizen with a Social Security number.

The election window runs from the day the child becomes eligible through December 31 of the year they turn 17 and can be made at any time in that period, separate from the tax return, using Form 4547.

After the election and account opening are confirmed, the IRS will fund the $1,000 contribution as soon as practicable, but not before July 4, 2026.

Download the bulletin for more details.

More Information

For more information on Trump Accounts, visit trumpaccounts.gov and see Form 4547 instructions.