The Treasury Department and IRS have released Notice 2025-68, announcing upcoming regulations and providing guidance on Trump Accounts, a new type of individual retirement account (IRA) for eligible children established under the One, Big, Beautiful Bill Act (OBBBA). The notice addresses key information reporting requirements for trustees and employers, and requests comments on withholding and other matters.
A Trump Account is a retirement account established for the exclusive benefit of an eligible individual, which is defined as any individual for whom an election to open such an account is made, who has not attained age 18 before the close of the calendar year in which the election is made, and for whom a Social Security number (SSN) has been issued before the date of election. Elections can be made via Form 4547 or through an online tool at Jumpstart the American Dream , with contributions beginning no earlier than July 4, 2026. In a related news release (IR-2025-117), the IRS announced that a draft version of Form 4547, Trump Account Election(s), has already been posted to the IRS website.
During the growth period (before January 1 of the year the child turns 18), permitted contributions include the $1,000 pilot program contribution from the Secretary for eligible children born after December 31, 2024, and before January 1, 2029, qualified general contributions from governmental entities or 501(c)(3) organizations, section 128 employer contributions, qualified rollover contributions, and contributions from other sources such as parents or grandparents. Distributions are generally prohibited during the growth period, except for qualified rollover contributions, qualified ABLE rollover contributions, distributions of excess contributions, and distributions upon the death of the account beneficiary.
Throughout this period, these accounts are subject to reporting under section 530A(i), unlike standard IRAs, which follow the reporting rules of section 408(i). Trustees must annually report to both the IRS and the account beneficiary information regarding contributions accepted (including the amount and source of contributions over $25 from persons other than the Secretary, account beneficiary, or parent/guardian), distributions, fair market value, basis, and any other matters that the Secretary may require. Failure to provide required reports may result in penalties under section 6693(a), unless due to reasonable cause. After the growth period, the reporting requirements of section 408(i) apply to the Trump Account, and for any given calendar year, a Trump Account is never subject to reporting under both sections.
Additionally, trustees receiving a qualified rollover contribution must submit an electronic report to the Treasury within 30 calendar days after the date of such contribution. This report must include the account beneficiary’s name, address, and SSN, as well as the new Trump Account’s trustee information, account number, and routing number. The transferring trustee must also promptly provide the receiving trustee with confirmation that the account is a Trump Account, along with basis and contribution information for the calendar year. Similarly, employers making section 128 contributions must indicate to the trustee that the contribution is excludible from the employee’s gross income. The trustee may rely on this information unless they have knowledge to the contrary.
The notice requests comments on numerous matters throughout the document, with submissions due by February 20, 2026. Among other items, comments are sought on the applicability of withholding under section 3405 for distributions during the growth period, other than qualified rollover contributions. Comments are also requested on disclosure requirements for account beneficiaries, which are expected to be similar to disclosure requirements for other IRAs under Treas. Reg. § 1.408-6, as well as the proposed electronic reporting format for trustees receiving qualified rollover contributions, including ways to reduce trustee burden through automatic reporting simultaneously with the rollover contribution.
