Let’s take a look at the basics of ‘Trump accounts’

On December 2, 2025, the Department of the Treasury and the Internal Revenue Service issued a notice of proposed rulemaking regarding the new “Trump accounts,” which were created by the One Big Beautiful Bill Act. The following questions and answers provide some of the basics of these new accounts.

Q1. What is a Trump account?

A Trump account is a type of traditional individual retirement account (IRA) that’s established for the exclusive benefit of an eligible individual. An eligible individual is any individual for whom an election is made to establish a Trump account, who hasn’t 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 the election.

A Trump account is subject to certain special rules that aren’t applicable to other individual retirement arrangements, most of which apply only during the period that ends before January 1 of the calendar year in which the account beneficiary reaches 18 (the so-called “growth period”). For example, a child born on October 1, 2025, would turn 18 on October 1, 2043, so the last day of the growth period would be December 31, 2042.