IRS webinar explains Trump accounts, $1,000 pilot deposit and July 4, 2026 start

Jeff Lattessa, a stakeholder liaison with the Internal Revenue Service, opened the agency's July 1 webinar by explaining the format, continuing education credit rules and how attendees could submit questions. The session featured opening remarks from Frank J. Visignano, introduced by Lattessa as the IRS's first chief executive officer, and a detailed presentation by Richard Furlong, senior stakeholder liaison.

Furlong said the Trump accounts were enacted under last year’s Working Families Tax Cuts and established a new Internal Revenue Code provision for an IRA‑style account designated for the exclusive benefit of an eligible individual. "Think of the Trump account as a type of traditional individual retirement account," Furlong said, adding that the statute includes a growth‑period regime that limits distributions while the beneficiary is a child.

Key eligibility and timing rules. An "eligible individual" is generally a person who has not attained age 18 before the close of the calendar year in which the election to open the account is made and must have a Social Security number issued before the initial election. Contributions cannot be made to Trump accounts before July 4, 2026, Furlong said. The Treasury will make a one‑time $1,000 pilot contribution for eligible children born between Jan. 1, 2025, and Dec. 31, 2028, but only if an affirmative election is made and the account is activated.

Forms, activation and trustee role. Furlong introduced Form 4,547 as the election used to establish a Trump account and, where elected, enroll an eligible child in the $1,000 pilot program. He advised practitioners to include an email address on Form 4,547 so the authorized individual receives an activation message from the official Treasury address no‑reply@trumpaccounts.treasury.gov. The Treasury has named Bank of New York Mellon as the initial trustee for the program; other financial institutions may participate after guidance and trustee enrollment.

Contribution, investment and rollover rules. During the growth period Furlong said the standard annual contribution limit for most Trump account contributions is $5,000 (indexed for inflation after 2027). That $5,000 cap does not apply to the separate $1,000 Treasury pilot deposit. Employers may offer Section 128 contribution programs that can contribute up to $2,500 per employee per year toward an employee’s or dependent’s Trump account (subject to forthcoming guidance and nondiscrimination rules). Investment choices are limited to eligible mutual funds or ETFs that track major U.S. equity indexes (for example, the S&P 500), and the statute restricts leveraged or high‑fee products during the growth period.

Rollovers to another Trump account must be trustee‑to‑trustee transfers of the entire account balance; an account beneficiary may have only one funded Trump account at a time during the growth period. At the end of the growth period (Dec. 31 of the year in which the beneficiary turns 17), a Trump account generally converts to a traditional IRA and most traditional IRA rules then apply.

Reporting and next steps. The IRS has released a draft Form 5498‑TA for trustee reporting of Trump account activity during the growth period; trustees will be required to file and furnish the finalized form by the date set in guidance (Furlong indicated filings would begin once the form is finalized, with trustees furnishing statements by May 31 for calendar‑year activity). Furlong said Treasury and IRS guidance and additional instructions are expected in coming months and urged practitioners to monitor irs.gov.

The webinar closed with practical reminders from Furlong and moderator Jeff Lattessa: account timing and activation matter; only one funded Trump account is allowed per child; and additional guidance, including proposed regulations and final forms, will be issued to support implementation.