Trump Accounts: What’s New and What Questions Remain

Key Takeaways:

• Trump Accounts are set to launch and begin accepting contributions on July 4, 2026. Treasury has launched the initial Trump Accounts registration process, though they are not yet funded or activated. Individuals will be enrolled once Treasury issues follow-up instructions to complete account activation.
• Treasury has begun clarifying several operational mechanics. Firms should wait for electronic trustee notification guidance, account movements are expected to be treated as transfers rather than taxable rollovers, and eligible investments are expected to include low-cost mutual funds or ETFs tracking broad market indices such as the S&P 500.
• Several important implementation questions remain outstanding, including how transfers and portability will work in practice, oversight of eligible investments over time, administration of contribution and tax requirements, and the process for converting Trump Accounts to traditional IRAs when beneficiaries turn 18.
• Trump Accounts present an opportunity to promote long-term saving, investing, and financial literacy from an early age, helping introduce more families to capital markets and the benefits of compounding over time. SIFMA continues to engage with Treasury, industry participants, and other stakeholders to support practical, scalable implementation and provide clarity for firms evaluating participation in the program.

With the July 4 implementation deadline quickly approaching, Treasury’s rollout of Trump Accounts is being closely monitored by financial institutions, account providers, and families as new guidance and operational developments continue to emerge. SIFMA recently provided comments to the Internal Revenue Service (IRS), noting that tax-advantaged savings programs such as Trump accounts can play an important role in helping families build long-term wealth. By enabling early and sustained investment, these accounts are designed to harness the power of compounding and encourage participation in capital markets from a young age.

With implementation moving forward, firms are evaluating not only whether to participate in the program, but also how to operationalize account opening, custody, transfers, and long-term account administration.

As Treasury works to operationalize the program, SIFMA continues to engage with Treasury and other stakeholders to support practical, scalable implementation. This includes recommendations to modernize custodial requirements, clarify account administration, and support effective transfer and portability frameworks.

Recent guidance and industry discussions have clarified several foundational elements of the program. At the same time, several operational and policy questions remain under consideration.

Key Implementation Updates

1. Treasury has launched the initial account registration process

• Treasury has launched TrumpAccounts.gov and made IRS Form 4547 available, allowing families to begin the sign-up process.
• While approximately five million individuals have completed Treasury’s initial registration process, these accounts have not yet been seeded or activated. Individuals are not fully enrolled until Treasury issues instructions to complete account activation.

2. Accounts must initially be opened through Treasury

• At launch, all Trump Accounts must be opened through Treasury, with account registration submitted by a legal guardian or other eligible family member.

3. Firms should wait for electronic trustee notification guidance

• Financial institutions interested in serving as trustees or custodians should wait to submit paper notifications or written expressions of interest.
• Treasury has indicated it intends to establish a fully electronic process for firms seeking trustee status or participation in the program. Additional guidance is expected.

4. Moving accounts between firms will be treated as transfers

• Movement of assets between institutions is expected to be treated as custodial transfers rather than taxable rollovers.
• Treasury’s current framework indicates that existing IRA transfer principles are expected to apply and would not constitute taxable events.

5. Core investment parameters are beginning to take shape

• Trump Accounts are expected to be invested in low-cost mutual funds or ETFs that track broad market indices, such as the S&P 500. Fees on these funds will be capped at 10 basis points or less.

Key Questions Awaiting Guidance

1. How Transfers and Portability Will Work in Practice

• Treasury has indicated that transfers from Treasury-held accounts to private-sector platforms are a “phase two” implementation issue, with current efforts focused on initial launch.
• Whether unfunded accounts can be transferred to account holders’ firm of choice remains an open question.
• SIFMA also anticipates Treasury providing guidance on how transfers can be initiated and authenticated across custodians.

2. Eligible investment requirements

• Treasury has outlined broad criteria, but it has not yet fully clarified which investments qualify and how firms should review them over time.
• Additional guidance is expected on:
  • How eligible investment status will be defined and monitored on an ongoing basis.
  • What governance framework firms must maintain to ensure continued compliance over time.

• Firms should begin assessing how to align existing index product offerings with anticipated eligibility requirements, while recognizing that additional guidance from Treasury is expected.

3. Age 18 conversion to Traditional IRA

• Under the statute, Trump Accounts are expected to convert into traditional IRAs once beneficiaries reach age 18.
• Treasury is expected to provide additional guidance on several operational questions, including:
  • How explicit account holder signature or affirmative consent will be carried out to complete conversion.
  • How firms will need to operationalize outreach and consent for newly adult account holders, particularly where there is no pre-existing customer relationship and account holders may be unaware of the account’s existence.
  • What happens if conversion paperwork is not completed before the account holder turns 18.

4. Contribution and tax questions

• Several contribution-related issues remain under active review, including:
  • Employer contributions, including how matching versus direct contributions will be treated operationally and for compliance purposes.
  • The statute includes multiple possible contribution sources, and firms still need clarity on how to order and report them.
  • Gift tax treatment remains an open question, particularly with respect to contributions from grandparents and other family members.
  • Questions also remain about the timing and administrative processes for verifying eligibility and properly crediting contributions.

SIFMA’s Ongoing Engagement

Trump Accounts represent a meaningful opportunity to promote long-term saving, investing, and financial literacy from an early age. As implementation continues, clear and practical guidance will be essential to ensuring these accounts can be operationalized efficiently and effectively across the financial ecosystem while helping introduce more families to long-term investing.

SIFMA looks forward to continued collaboration with Treasury and other stakeholders as Trump Accounts get set to launch.