The American Bankers Association this week urged the IRS to clarify how and when a $1,000 pilot contribution to a Trump account can be made to a rollover Trump account at a qualified institution.
The tax package passed by Congress last year created a new form of individual retirement account for children under 18, with children born from 2025 to 2028 eligible for a $1,000 pilot contribution from the government. The IRS recently proposed a rule to allow the contribution to be made to either an initial Trump account or a rollover Trump account.
In a letter to the agency, ABA said the proposed rule does not establish a process for rolling over an initial Trump account to a rollover account. The association recommended that the IRS require the $1,000 contribution to be made when the initial Trump account is opened for eligible children, or prior to when a qualified rollover contribution is made to a rollover Trump account at a different institution or trustee.
Among other things, the clarification would reduce some administrative requirements for the trustee of a rollover Trump account, ABA said.
