Sec. 70204. Trump accounts and contribution pilot program
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Subchapter F of chapter 1 is amended by adding at the end the following new part: Sec. 530A. Trump accounts. Except as provided in this section or under regulations or guidance established by the Secretary, a Trump account shall be treated for purposes of this title in the same manner as an individual retirement account under section 408(a). For purposes of this section— The term Trump account means an individual retirement account (as defined in section 408(a)) which is not designated as a Roth IRA and which meets the following requirements:
The account— is created or organized by the Secretary for the exclusive benefit of an eligible individual or such eligible individual's beneficiaries, or is— created or organized in the United States for the exclusive benefit of an individual who has not attained the age of 18 before the end of the calendar year, or such individual's beneficiaries, and funded by a qualified rollover contribution. The account is designated (in such manner as the Secretary shall prescribe) at the time of the establishment of the account as a Trump account.
The written governing instrument creating the account meets the following requirements: No contribution will be accepted— before the date that is 12 months after the date of the enactment of this section, or in the case of a contribution made in any calendar year before the calendar year in which the account beneficiary attains age 18, if such contribution would result in aggregate contributions (other than exempt contributions) for such calendar year in excess of the contribution limit specified in subsection (c)(2)(A).
Except as provided in subsection (d), no distribution will be allowed before the first day of the calendar year in which the account beneficiary attains age 18. No part of the account funds will be invested in any asset other than an eligible investment during any period before the first day of the calendar year in which the account beneficiary attains age 18. The term eligible individual means any individual— who has not attained the age of 18 before the close of the calendar year in which the election under subparagraph
(C)is made, for whom a social security number (within the meaning of section 24(h)(7)) has been issued before the date on which an election under subsection
(C)is made, and for whom— an election is made under this subparagraph by the Secretary if the Secretary determines (based on information available to the Secretary from tax returns or otherwise) that such individual meets the requirements of subparagraphs
(A)and
(B)and no prior election has been made for such individual under clause (ii), or an election is made under this subparagraph by a person other than the Secretary (at such time and in such manner as the Secretary may prescribe) for the establishment of a Trump account if no prior election has been made for such individual under clause (i). The term eligible investment means any mutual fund or exchange traded fund which— tracks the returns of a qualified index, does not use leverage, does not have annual fees and expenses of more than 0.1 percent of the balance of the investment in the fund, and meets such other criteria as the Secretary determines appropriate for purposes of this section. The term qualified index means— the Standard and Poor's 500 stock market index, or any other index— which is comprised of equity investments in primarily United States companies, and for which regulated futures contracts (as defined in section 1256(g)(1)) are traded on a qualified board or exchange (as defined in section 1256(g)(7)). Such term shall not include any industry or sector-specific index, but may include an index based on market capitalization. The term account beneficiary means the individual on whose behalf the Trump account was established. No deduction shall be allowed under section 219 for any contribution which is made before the first day of the calendar year in which the account beneficiary attains age 18. In the case of any contribution made before the calendar year in which the account beneficiary attains age 18— The aggregate amount of contributions (other than exempt contributions) for such calendar year shall not exceed $5,000. For purposes of this paragraph, the term exempt contribution means— a qualified rollover contribution, any qualified general contribution, or any contribution provided under section 6434. In the case of any taxable year after 2027, the $5,000 amount under subparagraph
(A)shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2026 for calendar year 2016 in subparagraph (A)(ii) thereof. If any increase under this subparagraph is not a multiple of $100, such amount shall be rounded to the next lowest multiple of $100. Section 219(f)(3) shall not apply to any contribution made to a Trump account for any taxable year ending before the calendar year in which the account beneficiary attains age 18. Except as otherwise provided in this subsection, no distribution shall be allowed before the first day of the calendar year in which the account beneficiary attains age 18. For purposes of applying section 72 to any amount distributed from a Trump account, the investment in the contract shall not include— any qualified general contribution, any contribution provided under section 6434, and the amount of any contribution which is excluded from gross income under section 128. Paragraph
(1)shall not apply to any distribution which is a qualified rollover contribution and the amount of such distribution shall not be included in the gross income of the beneficiary. Paragraph
(1)shall not apply to any distribution which is a qualified ABLE rollover contribution and the amount of such distribution shall not be included in the gross income of the beneficiary. For purposes of this section, the term qualified ABLE rollover contribution means an amount which is paid during the calendar year in which the account beneficiary attains age 17 in a direct trustee-to-trustee transfer from a Trump account maintained for the benefit of the account beneficiary to an ABLE account (as defined in section 529A(e)(6)) for the benefit of the such account beneficiary, but only if the amount of such payment is equal to the entire balance of the Trump account from which the payment is made. In the case of any contribution which is made before the calendar year in which the account beneficiary attains age 18 and which is in excess of the limitation in effect under subsection (c)(2)(A) for the calendar year— paragraph
(1)shall not apply to the distribution of such excess, the amount of such distribution shall not be included in gross income of the account beneficiary, and the tax imposed by this chapter on the distributee for the taxable year in which the distribution is made shall be increased by 100 percent of the amount of net income attributable to such excess (determined without regard to subparagraph (B)). If, by reason of the death of the account beneficiary before the first day of the calendar year in which the account beneficiary attains age 18, any person acquires the account beneficiary’s interest in the Trump account— paragraph
(1)shall not apply, such account shall cease to be a Trump account as of the date of death, and an amount equal to the fair market value of the assets (reduced by the investment in the contract) in such account on such date shall— if such person is not the estate of such beneficiary, be includible in such person’s gross income for the taxable year which includes such date, or if such person is the estate of such beneficiary, be includible in such beneficiary’s gross income for the last taxable year of such beneficiary. For purposes of this section, the term qualified rollover contribution means an amount which is paid in a direct trustee-to-trustee transfer from a Trump account maintained for the benefit of the account beneficiary to a Trump account maintained for such beneficiary, but only if the amount of such payment is equal to the entire balance of the Trump account from which the payment is made. For purposes of this section— The term qualified general contribution means any contribution which— is made by the Secretary pursuant to a general funding contribution, is made to the Trump account of an account beneficiary in the qualified class of account beneficiaries specified in the general funding contribution, and is in an amount which is equal to the ratio of— the amount of such general funding contribution, to the number of account beneficiaries in such qualified class. The term general funding contribution means a contribution which— is made by— an entity described in section 170(c)(1) (other than a possession of the United States or a political subdivision thereof) or an Indian tribal government, or an organization described in section 501(c)(3) and exempt from tax under section 501(a), and which specifies a qualified class of account beneficiaries to whom such contribution is to be distributed. The term qualified class means any of the following: All account beneficiaries who have not attained the age of 18 before the close of the calendar year in which the contribution is made. All account beneficiaries who have not attained the age of 18 before the close of the calendar year in which the contribution is made and who reside in one or more States or other qualified geographic areas specified by the terms of the general funding contribution. All account beneficiaries who have not attained the age of 18 before the close of the calendar year in which the contribution is made and who were born in one or more calendar years specified by the terms of the general funding contribution. The term qualified geographic area means any geographic area in which not less than 5,000 account beneficiaries reside and which is designated by the Secretary as a qualified geographic area under this subparagraph. In the case of any Trump account created or organized by the Secretary, the Secretary shall take into account the following criteria in selecting the trustee: The history of reliability and regulatory compliance of the trustee. The customer service experience of the trustee. The costs imposed by the trustee on the account or the account beneficiary. The rules of subsections
(k)and
(p)of section 408 shall not apply to a Trump account, and the rules of subsections
(d)and
(i)of section 408 shall not apply to a Trump account for any taxable year beginning before the calendar year in which the account beneficiary attains age 18. In the case of a Trump account, section 408(h) shall be applied by substituting a Trump account described in section 530A(b)(1) for an individual retirement account described in subsection
(a). In the case of any taxable year beginning before the first day of the calendar year in which the account beneficiary attains age 18, a contribution to a Trump account shall not be taken into account in applying any contribution limit to any individual retirement plan other than a Trump account. Section 408(d)(2) shall be applied separately with respect to Trump Accounts and other individual retirement plans. For purposes of applying section 4973(b) to a Trump account for any taxable year beginning before the first day of the calendar year in which the account beneficiary attains age 18, the term excess contributions means the sum of— the amount by which the amount contributed to the account for the calendar year in which taxable year begins exceeds the amount permitted to be contributed to the account under subsection (c)(2), and the amount determined under this paragraph for the preceding taxable year. For purposes of this paragraph, the excess contributions for a taxable year are reduced by the distributions to which subsection (d)(5) applies that are made during the taxable year or by the date prescribed by law (including extensions of time) for filing the account beneficiary’s return for the taxable year. The trustee of a Trump account shall make such reports regarding such account to the Secretary and to the beneficiary of the account at such time and in such manner as may be required by the Secretary. Such reports shall include information with respect to— contributions (including the amount and source of any contribution in excess of $25 made from a person other than the Secretary, the account beneficiary, or the parent or legal guardian of the account beneficiary), distributions (including distributions which are qualified rollover contributions), the fair market value of the account, the investment in the contract with respect to such account, and such other matters as the Secretary may require. Not later than 30 days after the date of any qualified rollover contribution, the trustee of the Trump account to which the contribution was made shall make a report to the Secretary. Such report shall include— the name, address, and social security number of the account beneficiary, the name and address of such trustee, the account number, the routing number of the trustee, and such other information as the Secretary may require. This subsection shall not apply to any period after the calendar year in which the beneficiary attains age 17. . Section 529A(b)(2)(B) is amended by inserting or received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B) after except as provided in the case of contributions under subsection (c)(1)(C) . The second sentence of section 529A(b)(6) is amended by inserting but do not include any contributions received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B) before the period at the end. Section 4973(h)(1) is amended by inserting or contributions received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B) after other than contributions under section 529A(c)(1)(C) . Section 6693(a)(2) is amended by striking and at the end of subparagraph (E), by striking the period at the end of subparagraph
(F)and inserting , and , and by inserting after subparagraph
(F)the following new subparagraph: section 530A(i) (relating to Trump accounts). . The table of parts for subchapter F of chapter 1 is amended by adding at the end the following new item: PART IX—Trump accounts . Part III of subchapter B of chapter 1 is amended by inserting after section 127 the following new section: Gross income of an employee does not include amounts paid by the employer as a contribution to the Trump account of such employee or of any dependent of such employee if the amounts are paid or incurred pursuant to a program which is described in subsection (c). The amount which may be excluded under subsection
(a)with respect to any employee shall not exceed $2,500. In the case of any taxable year beginning after 2027, the $2,500 amount in paragraph
(1)shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins by substituting calendar year 2026 for calendar year 2016 in subparagraph (A)(ii) thereof. If any increase determined under subparagraph
(A)is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. For purposes of this section, a Trump account contribution program is a separate written plan of an employer for the exclusive benefit of his employees to provide contributions to the Trump accounts of such employees or dependents of such employees which meets requirements similar to the requirements of paragraphs (2), (3), (6), (7), and
(8)of section 129(d). . The table of sections for part III of subchapter B of chapter 1 is amended by inserting after the item relating to section 127 the following new item: Sec. 128. Employer contributions to Trump accounts. . Part III of subchapter B of chapter 1 is amended by inserting before section 140 the following new section: Gross income of an account beneficiary shall not include any qualified general contribution to a Trump account of the account beneficiary. Any term used in this section which is used in section 530A shall have the meaning given such term under section 530A. . The table of sections for part III of subchapter B is amended by inserting before the item relating to section 140 the following new item: Sec. 139J. Certain contributions to Trump accounts. . Subchapter B of chapter 65 is amended by adding at the end the following new section: In the case of an individual who makes an election under this section with respect to an eligible child of the individual, such eligible child shall be treated as making a payment against the tax imposed by subtitle A (for the taxable year for which the election was made) in an amount equal to $1,000. The amount treated as a payment under subsection
(a)shall be paid by the Secretary to the Trump account with respect to which such eligible child is the account beneficiary. For purposes of this section, the term eligible child means a qualifying child (as defined in section 152(c))— who is born after December 31, 2024, and before January 1, 2029, with respect to whom no prior election has been made under this section by such individual or any other individual, and who is a United States citizen. An election under this section shall be made at such time and in such manner as the Secretary shall provide. This section shall not apply to any taxpayer unless such individual includes with the election made under this section the social security number of the eligible child with respect to whom the election is made. For purposes of paragraph (1), the term social security number shall have the meaning given such term in section 24(h)(7), determined by substituting before the date of the election made under section 6434 for before the due date of such return in subparagraph
(B)thereof. Any payment made to any individual under this section shall not be— subject to reduction or offset pursuant to subsection (c), (d), (e), or
(f)of section 6402 or any similar authority permitting offset, or reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection. The period determined under section 6611(a) with respect to any payment under this section shall not begin before January 1, 2028. In the case of any possession of the United States with a mirror code tax system (as defined in section 24(k)), this section shall not be treated as part of the income tax laws of the United States for purposes of determining the income tax law of such possession unless such possession elects to have this section be so treated. For purposes of this section, the terms Trump account and account beneficiary have the meaning given such terms in section 530A(b). . Part I of subchapter A of chapter 68 is amended by adding at the end the following new section: In the case of any individual who makes an election under section 6434 with respect to an individual who is not an eligible child of the taxpayer— if such election was made due to negligence or disregard of the rules or regulations, there shall be imposed a penalty of $500, or if such election was made due to fraud, there shall be imposed a penalty of $1,000. The term eligible child has the meaning given such term under section 6434. The terms negligence and disregard have the same meaning as when such terms are used in section 6662. . Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking and at the end of subparagraph (Y), by striking the period at the end of subparagraph
(Z)and inserting , and , and by inserting after subparagraph
(Z)the following new subparagraph: an omission of a correct social security number required under section 6434(e)(1) (relating to the Trump accounts contribution pilot program). . The table of sections for subchapter B of chapter 65 is amended by adding at the end the following new item: Sec. 6434. Trump accounts contribution pilot program. . The table of sections for part I of subchapter A of chapter 68 is amended by inserting after the item relating to section 6658 the following new item: Sec. 6659. Improper claim for Trump account contribution pilot program credit. . The amendments made by this section shall apply to taxable years beginning after December 31, 2025. In addition to amounts otherwise available, there is appropriated to the Department of the Treasury, out of any money in the Treasury not otherwise appropriated, $410,000,000, to remain available until September 30, 2034, to carry out the amendments made by this section.