The Department of Treasury and the Internal Revenue Service (IRSfor its acronym in English) issued initial guidance on the new Trump accounts, which are a legally established individual retirement system Tax cuts for working families for people under 18 years of age. Funding includes a $1,000 pilot contribution for eligible children.
According to the IRS statement, Notice 2025-68 provides an overview of how the Trump accounts and clarifies aspects from account creation to contributions, Investment rules, withdrawals, and coordination with other types of individual retirement accounts (BECOMESfor its acronym in English).
The structure of the Trump accounts It is designed for the long term. Consequently, the agency stated that the amounts “A revocation is generally not possible before January 1st of the calendar year in which the child turns 18.”.
From this moment on The accounts are treated like a traditional IRAwith the same rules that apply to this instrument.
In terms of investments, funds in Trump accounts must also be invested in certain mutual funds or exchange-traded funds (ETFs) that track the S&P 500 or another U.S. stock index.
The announcement also shows that the IRS published a draft of Form 4547, Trump Account Choice(s)which will be used to set up the account and enroll in the pilot program upon completion.
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