Trump Accounts: Contributions, Investments, and Distributions

Categories: IRS ORL FL
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About Course

This course is a practice-focused, four-module program on the federal tax treatment of Trump Accounts — the tax-favored savings accounts for children established under IRC §530A. It goes beyond a general overview of Trump Accounts to build the practical skills a preparer needs at the desk: correctly determining who is an eligible individual and who may validly elect to establish an account, applying the layered contribution and basis rules across all five contribution types (including the section 6434 pilot program and section 128 employer contributions), applying the statutory eligible-investment and growth-period distribution restrictions, and correctly handling the transition to ordinary traditional-IRA treatment once the growth period ends.

This course assumes general familiarity with individual federal income tax preparation and traditional IRA mechanics under IRC §408. Course content is grounded in IRC §530A and related Code sections added by section 70204 of Public Law 119-21 (the One, Big, Beautiful Bill Act); IRS Notice 2025-68; proposed Treas. Reg. §1.530A-1 (REG-117270-25); proposed Treas. Reg. §1.530A-3 (Docket CC-00349938-26/RIN 1545-BS14); proposed regulations under REG-101355-26 (section 128 employer contributions); proposed Treas. Reg. §301.6434-1 (REG-117002-25, section 6434 pilot program); and IRS Form 4547 and its instructions. Where authority remains proposed, interim, or reserved for future guidance, the course says so explicitly and identifies each source’s own reliance conditions.

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What Will You Learn?

  • Determine whether a specific individual qualifies as an eligible individual for Trump Account purposes, distinguish an initial Trump Account from a rollover Trump Account, and correctly identify the authorized individual under the Form 4547 priority order or the qualifying-child anticipation test.
  • Identify the five categories of Trump Account contributions, apply the $5,000 aggregate limit and basis rules correctly, and describe the section 6434 pilot program contribution's statutory protections and the section 128 employer contribution program's mechanics and nondiscrimination requirements.
  • Apply the statutory definition of an eligible investment, including the leverage exclusion and the 0.1 percent fee limit, and correctly determine the date on which a fund that loses eligible-investment status is treated as disqualifying the account.
  • Determine what changes and what remains permanent when a Trump Account's growth period ends, apply the section 72(t) early-distribution exceptions to a post-growth-period distribution, and correctly identify which reporting regime and penalty provisions apply.
  • Correctly tier every rule addressed in this course as settled statutory law, Notice 2025-68 interim guidance, or a specific named proposed regulation — including whether that regulation permits pre-finalization reliance — rather than treating every source as equally final.

Course Content

Module 1 — Establishment and Eligibility
This module covers Trump Account establishment and eligibility under IRC §530A. You will learn the three-part eligible-individual test, the distinction between an initial Trump Account (established by the Secretary) and a rollover Trump Account, the Form 4547 authorized-individual priority order versus the qualifying-child anticipation test, and the trustee-approval and responsible-party rules. By the end of this module, you will be able to correctly tier every establishment rule as settled statute, Notice 2025-68 interim guidance, or a specific proposed regulation.

  • Establishment and Eligibility

Module 2 — Contributions: Sources, Limits, and the Pilot Program
This module covers the five categories of Trump Account contributions and their basis and limit treatment. You will learn which contributions count toward the $5,000 aggregate limit, the section 6434 pilot program contribution's special-taxable-year mechanism and statutory offset and interest protections, and the section 128 employer-contribution program's mechanics and nondiscrimination testing. By the end of this module, you will be able to apply the correct authority tier to each contribution rule, including which proposed regulations do or do not permit pre-finalization reliance.

Module 3 — Eligible Investments and Growth-Period Restrictions
This module covers the statutory eligible-investment definition and the growth-period distribution restrictions that apply to a Trump Account. You will learn the four eligible-investment conditions, the risk-based leverage exclusion, the 0.1 percent fee limit, and the differing 30-day correction rules for a monitoring-compliant trustee, a non-compliant trustee, and a trustee's own administrative error. By the end of this module, you will be able to determine the exact date a fund's loss of eligible-investment status disqualifies the account.

Module 4 — Post-Growth-Period Transition, Distributions, and Practitioner Compliance
This module covers what changes, and what remains permanent, when a Trump Account's growth period ends. You will learn the fixed calendar-year transition boundary, the optional governing-instrument provision for an automatic transfer to an ordinary traditional IRA, the section 72(t) early-distribution exceptions, and the section 530A(i)/408(i) reporting transition and its associated penalties. By the end of this module, you will be able to correctly state which authority supports each post-growth-period conclusion.

Final Assessment – Trump Accounts: Contributions, Investments, and Distributions
You have completed a comprehensive review of the topics presented throughout this course and are now prepared to demonstrate your understanding of the key concepts. The following final examination assesses your knowledge of the material covered in all four modules. A passing score of 70% is required to successfully complete the course.

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