Treasury, IRS Issue Trump Account Proposals

The Department of Treasury and the Internal Revenue Service issued the first two proposed rules related to Trump Accounts, the tax-advantaged savings and investment accounts created by H.R. 1. America's Credit Unions consistently advocates to include credit unions as authorized Trump Account providers, and the proposals indicate credit unions qualify as trustees.

The first proposal establishes Trump Accounts as a new type of traditional IRA for children under 18. The rule provides that the Treasury Secretary will create or organize initial Trump Accounts, and that families can subsequently roll over to a different trustee, including a credit union, via a qualified rollover contribution (trustee-to-trustee transfer of the full balance).

Treasury Secretary Scott Bessent indicated publicly that Treasury intends to select a single trustee for initial accounts, positioning credit unions as potential rollover trustees. Credit unions qualify as trustees under existing section 408(n) bank status.

All nonbank trustees approved as of Dec. 31, 2025, are automatically approved to serve as Trump account trustees, meaning brokerage firms can immediately compete for this business.

The statutory investment requirement means that credit unions will likely need to partner with an investment provider, such as a credit union service organization. Treasury is currently soliciting comments on potential changes to nonbank trustee qualification standards.
Comments on this proposal are due by May 8.

The second proposal would implement a pilot program that includes a $1,000 government contribution to Trump Accounts for U.S. citizens born in 2025 through 2028. The contribution can only be deposited into an existing Trump Account, meaning institutions need to be ready to open accounts before families elect to participate in the pilot program.

Comments on the second proposal are due April 8.