By Douglas E. Price
💌 Today’s Thing: A Follow-up Report — The Big and Beautiful Trump Accounts
Back on October 20th, the Tax Clarity Newsletter issued a special edition about the upcoming Trump Accounts. That issue included a lot of detail on elements of the actual law and how it will function, particularly Section 6434 of the tax code.
The Tax Clarity Newsletter makes every effort to get out front on impactful issues. We use decades of professional experience on tax policy to provide facts and insight.
Today, a follow-up our previous reporting…presented with concise clarity.
🧾 The deets…clean and quick
On Tuesday, the Trump Administration through the Department of the Treasury and the Internal Revenue Service published Notice 2025-68 1 as a general overview of the Trump Accounts program. No contributions to Trump Accounts will be permitted until July 4, 2026.
This notice has an extensive question and answer (Q&A) section intended to be the foundation of the regulations, within the following categories:
• Establishment of Accounts
• Section 6434 Pilot Program
• Requirements for Contributions
• Eligible Investments
• Requirements for Distributions
• Applicability of Individual Retirement Account (IRA) Reporting Rules
🧾 WHY does this matter to you NOW?
IRC §6434 was created by the original One Big, Beautiful Bill Act (OBBBA)2 on this past July 4th. The Department of Treasury shall provide $1,000 to an individual who opens a Trump Account for their eligible child, in the form of a payment against the parent’s income tax. The Notice specifically says “individual” instead of “parent”. The $1,000 payment will be paid to the Trump account of the eligible child. The total amount of contributions3 (other than exempt contributions) in a calendar year is $5,000, before the account beneficiary reaches age 18.
🧾 HOW can I get this started?
The election is to be made on new IRS tax Form 4547 (surely not by coincidence, apparently the form number is available, even if the actual form isn’t). It will also be available via authorized online filing tools, or through the administration’s web address, trumpaccounts.gov.
According to the website, there will be a live reveal on Wednesday, December 17th.
🧾 WHO qualifies as an eligible child?
Under IRC §6434(c) an “eligible child” means a qualifying child (as defined in IRC §152(c)) born on or after January 1, 2025, and before January 1, 2029, as long as there has been no prior election for a pilot program contribution for that child. The eligible child must be a U.S. citizen.
In addition, under IRC §6434(e) the pilot program election must include the eligible child’s social security number, which must have been issued to the child before the election.
🧾 HOW will employer matching provide a greater incentive for individuals to establish Trump Accounts for their eligible children?
IRC §128 governs employer contributions to qualified plans. Employers may contribute up to $2,500 per year (which counts against the $5,000 annual limit) to a Trump Account of the employee or the employee’s dependent under an employer’s Trump Account contribution program, and the contribution will not count toward the employee’s taxable income4.
🧾 WHY are private DONORS getting involved?
One significant element of the program that was not clear a month ago is how certain governmental entities, charities, and a category of contributors described as “any other person” under may also make qualified general contributions to Trump Accounts, if given to a qualified class5 of account beneficiaries. Undoubtedly there will be tax benefits for “any other person” to do so. I will explore that in a future special edition.
According to the Notice, other persons are also able to make contributions up to an aggregate limit of $5,000 per year. Tuesday’s widely reported pledge of $6.25 billion by billionaire couple Michael and Susan Dell to seed Trump Accounts for children ages 10 and under will be based on median family income under $150,000 and specific geographic locations. That last part, geographic locations, was specified in the original One Big, Beautiful Bill Act (OBBBA) provision.
On Tuesday, the Associated Press reported that the Dells’ chose to use discrete areas such as zip codes as their method of identifying geographic areas6. This may be a blueprint for other wealthy donors to follow.
However, the main Trump Accounts tax code section 530A defines a “qualified geographic area” as “any geographic area in which not less than 5,000 account beneficiaries reside.” So ultimately, the final destinations of the Dells’ benevolence are still to be determined.
There’s the scoop, everyone! Thanks for taking time to check out the Tax Clarity Newsletter. In the spirit of this season of giving, there will be multiple issues in the month of December. If you want to join our mailing list, subscribe and receive a direct copy of every issue, or provide any feedback, send an e-mail to admin@sweetclarity.com.
Thank you so much!
References (6)
1 IRS Notice 2025-68, Notice of Intent to issue regulations with respect to section 530A Trump accounts, accessed December 2, 2025.
2 Pub. L. 119-21, 139 Stat. 181, at 183 (2025), §70204.
3 IRC 530A(f)(2) General funding contribution
4 IRC 530A(c)(2)(A) Treatment of contributions
5 IRC 530A(f)(3) Qualified class
6 Associated Press, Michael and Susan Dell donate $6.25 billion to encourage families to claim ‘Trump Accounts’, accessed December 3, 2025.
DISCLAIMER: The information in this newsletter is derived from public information, provided for education purposes. It is not provided as a financial advisory service and should be relied upon as such. For advice on a specific tax matter, please consult a tax professional.
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