IRS Provides Some Guidance on Trump Accounts
The IRS issued Notice 2025-68 on Tuesday of last week regarding the new Trump Accounts
The One Big Beautiful Bill Act introduced a new account for kids under age 18 called Trump Accounts.
A Trump Account is only for children under age 18. Once the child reaches age 18, it becomes a regular Individual Retirement Account (IRA) and then subject to the normal IRA rules at that point.
During the growth period (ending on December 31 of the calendar year before they turn age 17), the Trump Account is subject to the following special rules:
Funds in a Trump account can be invested only in eligible investments,
A Trump account has a separate contribution limit from other individual retirement arrangements,
A Trump account is generally not allowed to make distributions,
No deduction by an individual is allowed for any contribution to a Trump account, and
Trustees of Trump accounts have similar but different reporting requirements from trustees of other IRAs.
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