Understanding IRS Notice 2025-68: What You Need to Know About “Trump Accounts” (A Hypothetical Analysis)
Important Disclaimer: The document referenced in this post—IRS Notice 2025-68 describing “Trump accounts” created by a “One, Big, Beautiful Bill Act”—appears to be fictional or hypothetical. As of 2026, no such legislation exists in U.S. tax law, and the IRS has not issued regulations creating a new IRA type by this name. This analysis is for educational purposes only and should not be relied upon for tax planning.
What Would a “Trump Account” Be—If It Existed?
According to the hypothetical notice, a “Trump account” would be a specialized traditional IRA designed for minors, established under a fictional One, Big, Beautiful Bill Act (OBBBA) enacted July 4, 2025. Here’s how it would theoretically work:
✅ Key Features
| Feature | Description |
|---|---|
| Eligibility | U.S. citizens under age 18 |
| Pilot Program | $1,000 Treasury contribution for children born 2025–2028 (upon election) |
| Contribution Flexibility | No earned income requirement—unlike regular IRAs |
| Annual Limit | $5,000 cap (inflation-adjusted after 2027) on certain contribution types |
| Restricted Period | Special rules apply until December 31 of the year before the beneficiary turns 18 (“growth period”) |
| Investment Rules | During growth period: only low-cost index funds/ETFs (≤0.1% fees) tracking broad U.S. markets; no cash holdings allowed |
🔒 Strict Distribution Limits (During Growth Period)
No withdrawals permitted before age 18 except for:
- Rollovers to another Trump account
- One-time rollover to an ABLE account during the year the beneficiary turns 17
- Correction of excess contributions
- Death of the beneficiary
⚠️ Critical Limitations
- No tax deduction for contributions (even though it’s a traditional IRA structure)
- Basis tracking complexity: Some contributions create after-tax basis; others (like the $1,000 pilot contribution) do not
- Cannot accept SEP or SIMPLE IRA contributions even after age 18
- Earliest availability: Contributions couldn’t begin until July 4, 2026
Why This Matters (Even as a Hypothetical)
While fictional, this notice raises interesting questions about real-world policy debates:
- Childhood wealth-building: Proposals for “baby bonds” or child development accounts have been discussed in Congress—though none have passed in this form.
- Retirement system expansion: The concept of IRAs for minors without earned income challenges traditional retirement policy frameworks.
- Investment restrictions: Mandating low-cost, diversified index funds reflects ongoing debates about fiduciary standards and retirement account fees.
Bottom Line
This document serves as a reminder to always verify tax guidance through official IRS channels (IRS.gov) before making financial decisions. Real IRS notices carry publication numbers and appear in the Internal Revenue Bulletin. When encountering unfamiliar tax provisions—especially those with politically charged names—exercise caution and consult a qualified tax professional.
Have you received communications about new retirement accounts? Always confirm their legitimacy before acting. When in doubt: check IRS.gov or call the IRS directly at 800-829-1040.
This post analyzes a hypothetical document for educational purposes only. It does not constitute tax advice. Consult a EA or tax attorney for guidance on actual retirement account strategies.