On September 30, 2026, the U.S. Department of the Treasury and the IRS issued temporary and proposed regulations outlining new requirements for Trump Accounts under Internal Revenue Code Section 530A. The regulations address automatic enrollment, account activation, and contribution rules.
Key Highlights of the Regulations
Automatic Enrollment: Beginning October 1, 2026, the Treasury began establishing Trump Accounts automatically, known as “Auto Accounts,” for eligible children. Parents or guardians must claim these accounts through an electronic Treasury process to access full account management features.
Contributions and Funding: Until claimed, accounts may only receive qualified general contributions and the $1,000 federal pilot contribution. Government entities and qualifying charitable organizations may make broad-based contributions, including publicly traded stock.
Contribution Limits: Trump Accounts have an annual aggregate contribution limit of $5,000, subject to inflation adjustments. Children born between 2025 and 2028 may also qualify for a one-time $1,000 federal contribution through a separate election process under IRC Section 6434. The one-time $1,000 federal contribution does not count toward the $5,000 IRC Section 530A annual contribution cap.
Effective Dates and Next Steps
The temporary regulations took effect September 30, 2026, and apply to taxable years beginning on or after January 1, 2026. They also replace previously proposed regulations issued in March 2026.
These updates provide additional guidance on how Trump Accounts will be established and funded. Employers, benefits professionals, and families should familiarize themselves with the new requirements as implementation moves forward.
For additional details, review the full IRS regulations.
Coming Soon: Trump Account Solutions from Medcom
Medcom will soon offer plan document preparation services for employers interested in establishing Trump Account Contribution Programs (TACPs). Under IRC Section 128, employers may contribute up to $2,500 annually, indexed after 2027, on a pre-tax basis per employee to eligible employees’ or dependents’ Trump Accounts. Employers may also incorporate these contributions into a Section 125 cafeteria plan, subject to applicable requirements.
Our services will include preparing written program documents outlining eligibility, contributions, and administration under Sections 125 and 128, as well as Section 125 plan amendments for existing clients.
Stay tuned for more information on how Medcom can help employers establish and administer these programs!
