Internal Revenue Bulletin 2025-52 (PDF rendition): IRS Notices

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Bulletin No. 2025–52
December 22, 2025
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
EMPLOYEE PLANS
Notice 2025-60, page 853.
This notice sets forth the 2025 Required Amendments List
(2025 RA List). The 2025 RA List applies to individually
designed plans qualified under section 401(a) of the Internal
Revenue Code and individually designed plans that satisfy
the requirements of section 403(b). The 2025 RA List also
applies to pre-approved plans with respect to interim amend-
ments.
Notice 2025-68, page 856.
This notice informs taxpayers that the Treasury Department
and IRS intend to propose regulations providing guidance
regarding section 530A (Trump accounts) and related sec-
tions of the Code. Section II of this notice provides a general
overview of how Trump accounts and the related sections
of the Code work, but this notice is not intended to provide
comprehensive guidance regarding Trump accounts. Section
III of this notice addresses certain specific initial questions
related to Trump accounts. Section IV of this notice contains
a request for comments regarding section 530A and related
sections of the Code.
INCOME TAX
Notice 2025-75, page 867.
This notice announces that the Department of the Treasury
and the IRS intend to issue proposed regulations regarding
the transition rule for dividends (the “transition rule”) in sec-
tion 70354(c)(2) of Public Law 119-21, 139 Stat. 72 (July 4,
2025), commonly known as the One, Big, Beautiful Bill Act.
The transition rule modifies the application of section 951(a)
(2)(B) of the Internal Revenue Code for certain taxable years
of foreign corporations beginning before January 1, 2026.
Notice 2025-77, page 872.
This notice describes proposed regulations that Treasury
and the IRS intend to issue under section 70312 of Public
Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known
as the One, Big, Beautiful Bill Act, providing guidance on the
effective date and application of section 960(d)(4) of the
Code.
Notice 2025-78, page 874.
This notice describes proposed regulations that Treasury
and the IRS intend to issue under section 70322 of Public
Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known
as the One, Big, Beautiful Bill Act, providing guidance on the
effective date and application of section 250(b)(3)(A)(i)(VII) of
the Code.
Finding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and
enforce the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing offi-
cial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
December 22, 2025 Bulletin No. 2025–52

Part III
2025 Required
Amendments List
for Qualified and
Section 403(b) Plans
Notice 2025-60
I. PURPOSE
This notice sets forth the 2025 Required
Amendments List (2025 RA List). The
Required Amendments List (RA List)
applies to individually designed plans
qualified under section 401(a) of the Inter-
nal Revenue Code (Code) (qualified indi-
vidually designed plans) and individually
designed plans that satisfy the require-
ments of section 403(b) (section 403(b)
individually designed plans). The RA List
also applies to pre-approved plans with
respect to interim amendments.
II. BACKGROUND
Section 401(b) provides a remedial
amendment period during which a plan
may be amended retroactively to comply
with the qualification requirements under
section 401(a). Treas. Reg. § 1.401(b)-1
describes the disqualifying provisions that
may be amended retroactively and the
remedial amendment period during which
retroactive amendments may be adopted.
That regulation also grants the Commis-
sioner of Internal Revenue the discretion
to designate certain plan provisions as
disqualifying provisions and to extend the
remedial amendment period in guidance
published in the Internal Revenue Bulletin
(IRB).
Section 5 of Rev. Proc. 2019-39,
2019-42 IRB 945, as modified by section
III.B.2(e) of Notice 2020-35, 2020-25
IRB 948, establishes a system of recurring
remedial amendment periods for section
403(b) individually designed plan form
defects first occurring after June 30, 2020.
Section 5.03(1)(c) of Rev. Proc. 2022-
40, 2022-47 IRB 487, provides generally
that, except as otherwise provided by stat-
ute or in regulations or other guidance
published in the IRB, in the case of a qual-
ified or section 403(b) plan that is individ-
ually designed and is not a governmental
plan within the meaning of section 414(d)
of the Code, the remedial amendment
period for (1) a disqualifying provision or
(2) a form defect first occurring after June
30, 2020, that arises as a result of a change
in qualification requirements or sec-
tion 403(b) requirements, as applicable,
expires on the last day of the second cal-
endar year that begins after the issuance of
the RA List on which the change in qual-
ification requirements or section 403(b)
requirements appears. Section 5.03(2)(c)
provides a special rule for governmental
plans that may further extend the remedial
amendment period in some cases.
Section 6.01 of Rev. Proc. 2022-40 pro-
vides that the plan amendment deadline
with respect to (1) a disqualifying provi-
sion in a qualified individually designed
plan, or (2) a form defect first occurring
after June 30, 2020, in a section 403(b)
individually designed plan is the date on
which the remedial amendment period
expires in accordance with section 5 of
Rev. Proc. 2022-40 with respect to that
disqualifying provision or form defect.
Section 7 of Rev. Proc. 2022-40 pro-
vides that the Department of the Treasury
(Treasury Department) and the Internal
Revenue Service (IRS) publish an annual
RA List.
1
In general, a change in quali-
fication requirements or section 403(b)
requirements will not appear on an RA
List until guidance with respect to that
change (including, any model amend-
ment, if applicable) has been provided, in
regulations or in other guidance published
in the IRB. However, in the discretion
of the Treasury Department and the IRS,
a change in qualification requirements
or section 403(b) requirements may be
included on an RA List in other circum-
stances, such as in cases in which a stat-
utory change is enacted and the Treasury
Department and the IRS anticipate that no
guidance will be issued.
Section 7.01(1)(a) of Rev. Proc. 2023-
37, 2023-51 IRB 1491, provides that for
a pre-approved plan that is not a govern-
mental plan, a provider (or the adopting
employer, if applicable) adopts an interim
amendment (as defined in section 4.01(9)
of Rev. Proc. 2023-37) timely if the plan
amendment is adopted by the last day of
the second calendar year that begins after
the issuance of the RA List in which the
change in qualification requirements or
section 403(b) requirements appears.
The remedial amendment period appli-
cable to a disqualifying provision or form
defect arising as a result of a change in
qualification requirements or section
403(b) requirements may be extended
beyond the date that normally would
apply to an item included on an RA List,
if a statute, regulation, or other guidance
published in the IRB provides for a later
deadline.
Section 501 of the SECURE 2.0 Act
2

provides, in general, that a retirement plan
or annuity contract will be treated as being
operated in accordance with the terms of
the plan during a specified period and,
except as provided by the Secretary of
the Treasury (or the Secretary’s delegate),
a retirement plan will not fail to satisfy
the anti-cutback requirements of section
411(d)(6) of the Code or section 204(g) of
the Employee Retirement Income Secu-
rity Act of 1974, Pub. L. 93-406, 88 Stat.
829, as amended (ERISA), by reason of
a plan amendment made pursuant to any
amendment made by the SECURE 2.0 Act
or pursuant to any regulation issued by the
Secretary of the Treasury or the Secretary
of Labor (or a delegate of either such Sec-
retary) under the SECURE 2.0 Act, pro-
vided that:
(1) the amendment is adopted no later
than the last day of the first plan year
beginning on or after January 1, 2025, or,
1
In order to help plan sponsors achieve operational compliance with changes in requirements, the IRS also provides the Operational Compliance List, which is a list of changes in both
qualification requirements and section 403(b) requirements that are effective during a calendar year, on the IRS website at https://www.irs.gov/retirement-plans/operational-compliance-list.
See generally section 8 of Rev. Proc. 2022-40.
2
Division T of the Consolidated Appropriations Act, 2023, Pub. L. 117-328, 136 Stat. 4459 (2022), known as the SECURE 2.0 Act of 2022 (SECURE 2.0 Act).
Bulletin No. 2025–52 853 December 22, 2025

for an applicable collectively bargained
plan (a plan maintained pursuant to one
or more collective bargaining agreements
between employee representatives and
one or more employers ratified before
December 29, 2022), or for a govern-
mental plan (within the meaning of sec-
tion 414(d) of the Code), the last day of
the first plan year beginning on or after
January 1, 2027, or such later date as the
Secretary may prescribe (the section 501
date);
(2) the amendment applies retroac-
tively to the effective date of the SECURE
2.0 Act provision or the regulations there-
under (or, in the case of an amendment not
required by a provision of the SECURE
2.0 Act or the regulations thereunder, the
effective date specified by the plan); and
(3) the plan or contract is operated as
if the amendment were in effect during
the period beginning on the effective date
of the SECURE 2.0 Act provision or the
regulations thereunder (or, in the case of
an amendment not required by a provision
of the SECURE 2.0 Act or the regulations
thereunder, the effective date specified by
the plan or contract) and ending on the
section 501 date or, if earlier, the date the
amendment is adopted.
Section 501(c) of the SECURE 2.0 Act
modifies section 601(b)(1) of the Setting
Every Community Up for Retirement
Enhancement Act of 2019 (SECURE
Act),
3
sections 2202(c)(2)(A) and 2203(c)
(2)(B)(i) of the Coronavirus Aid, Relief,
and Economic Security Act (CARES
Act),
4
and section 302(d)(2)(A) of Title III
of the Taxpayer Certainty and Disaster Tax
Relief Act of 2020 (Relief Act)
5
to extend
plan amendment deadlines with respect to
these sections to coordinate with the plan
amendment deadlines under section 501
of the SECURE 2.0 Act, as applicable.
6
Notice 2024-2, 2024-2 IRB 316, Q&A
J-1, provides the deadlines by which a
retirement plan must be amended to reflect
the provisions of the SECURE Act, sec-
tion 104 of the Miners Act, section 2202
or 2203 of the CARES Act, section 302 of
the Relief Act, and the SECURE 2.0 Act
(the Acts) and the regulations thereunder.
7

In general, the deadline for a qualified
plan: (1) that is not a governmental plan
within the meaning of section 414(d) of
the Code or an applicable collectively bar-
gained plan is December 31, 2026; (2) that
is an applicable collectively bargained
plan is December 31, 2028; or (3) that is
a governmental plan within the meaning
of section 414(d) is December 31, 2029.
In general, the deadline to amend a sec-
tion 403(b) plan: (1) that is not maintained
by a public school, as described in section
403(b)(1)(A)(ii), is December 31, 2026;
(2) that is an applicable collectively bar-
gained plan of a tax-exempt organization
described in section 501(c)(3) is Decem-
ber 31, 2028; or (3) that is maintained by
a public school, as described in section
403(b)(1)(A)(ii), is December 31, 2029.
III. REMEDIAL AMENDMENT
PERIOD AND PLAN AMENDMENT
DEADLINE
For individually designed plans,
December 31, 2027, is generally both
the last day of the remedial amendment
period and the plan amendment deadline
with respect to (1) a disqualifying pro-
vision arising as a result of a change in
qualification requirements that appears on
the 2025 RA List, and (2) a form defect
arising as a result of a change in section
403(b) requirements that appears on the
2025 RA List. For pre-approved plans,
December 31, 2027, is also generally the
last day for a provider (or the adopting
employer, if applicable) to timely adopt
an interim amendment with respect to
such a disqualifying provision or form
defect. Later dates may apply to a gov-
ernmental plan within the meaning of
section 414(d) pursuant to section 5.03(2)
(c) of Rev. Proc. 2022-40 for individually
designed plans and section 7.01(2) of Rev.
Proc. 2023-37 for pre-approved plans.
IV. CONTENT AND ORGANIZATION
OF RA LIST
In general, an RA List includes changes
to statutory and administrative qualifi-
cation requirements and section 403(b)
requirements
8
that result in disqualifying
provisions or form defects and with which
a plan must comply in operation during
the calendar year in which the list is pub-
lished.
9
However, an RA List does not
include:
(1) Guidance issued or legislation enacted
after the list has been prepared;
(2) Changes in requirements that can-
not reasonably be reflected in plan
language without guidance and with
respect to which the Treasury Depart-
ment and the IRS expect to issue
guidance that would be included on
an RA List issued in a future year;
10
(3) Changes in requirements that permit
(but do not require) optional plan
provisions, in contrast to changes
in requirements that cause existing
plan provisions (which may include
optional plan provisions previously
3
Division O of the Further Consolidated Appropriations Act, 2020, Pub. L. 116-94, 133 Stat. 2534 (2019).
4
Pub. L. 116-136, 134 Stat. 281 (2020).
5
Division EE of the Consolidated Appropriations Act, 2021, Pub. L. 116-260, 134 Stat. 1182 (2020).
6
Section G of Notice 2020-68, 2020-38 IRB 567, extended the deadline to amend a plan to reflect section 104 of Division M of the Further Consolidated Appropriations Act, known as the
Bipartisan American Miners Act of 2019 (Miners Act), to coordinate with the plan amendment deadlines provided in section 601 of the SECURE Act.
7
See section II.H of Notice 2024-2 relating to section 348 of the SECURE 2.0 Act for guidance that (1) addresses which cash balance plan amendments are made pursuant to section 348
of the SECURE 2.0 Act for purposes of applying section 501, and (2) sets forth the application of the exception under section 411(d)(6) for those plan amendments changing the interest
crediting rate under the plan.
8
References to qualification requirements and to section 403(b) requirements in Parts IV and V of this notice are referred to as “requirements.”
9
RA Lists also may include changes in requirements with which a plan must comply in operation during a prior calendar year that were not included on a prior RA List under certain circum-
stances, such as changes in requirements that were issued or enacted after the prior year’s RA
List was prepared.
10
Items relating to the Roth catch-up requirement under section 603 of the SECURE 2.0 Act are examples of changes described in item (2) and also the principle that, in general, an RA List
includes only changes to statutory and administrative qualification requirements and section 403(b) requirements with which a plan must comply in operation during the calendar year in
which the list is published. Thus, because final regulations issued in 2025 regarding Roth catch-up contributions (90 Fed. Reg. 44527) are not applicable until taxable years beginning on or
after January 1, 2027 (or later dates for collectively bargained and governmental plans), they are not on the 2025 RA List. In addition, because the final regulations regarding Roth catch-up
contributions are not yet applicable and do not appear on the 2025 RA List, section 603 of the SECURE 2.0 Act also does not appear on the 2025 RA List. It is anticipated that the final reg-
ulations regarding Roth catch-up contributions and section 603 of the SECURE 2.0 Act will appear on the 2027 RA
List.
December 22, 2025 854 Bulletin No. 2025–52

Bulletin No. 2025–52 855 December 22, 2025
adopted) to become disqualifying
provisions or section 403(b) form
defects;
11
or
(4) Changes in the tax laws affecting
qualified plans or section 403(b)
plans that do not cause plan provi-
sions to become disqualifying provi-
sions or section 403(b) form defects
(such as changes to the tax treatment
of plan distributions or changes to the
plan funding requirements).
The RA List is divided into three parts.
Part A includes changes in requirements
that (1) generally would require an amend-
ment to most plans or to most plans of the
type affected by the changes, and (2) do
not relate to optional plan provisions pre-
viously adopted.
Part B includes changes in require-
ments that (1) the Treasury Department
and the IRS anticipate will not require
amendments to most plans but might
require an amendment because of an
unusual plan provision in a particular plan,
and (2) do not relate to optional plan pro-
visions previously adopted. For example,
if a change affects a particular requirement
that most plans incorporate by reference,
Part B would include that change because
a particular plan might not incorporate the
requirement by reference and, thus, might
include language inconsistent with the
change.
Part C includes changes in requirements
that relate to optional plan provisions pre-
viously adopted. For example, changes
in requirements included in section L of
Notice 2024-2 relating to the treatment
of employer contributions or nonelective
contributions as Roth contributions under
section 604 of the SECURE 2.0 Act were
included in Part C of the 2024 RA List.
This placement was because plans are
not required to include terms providing
for that Roth treatment (so that section
604 of the SECURE 2.0 Act will not be
listed on any RA List) but plans that were
amended to provide for the treatment of
employer contributions as Roth contribu-
tions prior to the release of section L of
Notice 2024-2 were required to comply
with administrative guidance relating to
that treatment.
Amendments to an eligible retirement
plan (including an annuity contract) made
pursuant to a provision of the Acts, or any
regulations or other guidance published
in the IRB under the Acts, that are made
on or before the plan amendment deadline
established under the RA List in which
the provision is included will not cause
the plan to fail to satisfy the anti-cutback
requirements of section 411(d)(6) of the
Code or section 204(g) of ERISA, if appli-
cable, by reason of the amendments.
Annual, monthly, or other periodic
changes to (1) the various dollar lim-
its that are adjusted for cost of living
increases as provided in section 415(d) or
other Code provisions, (2) the spot seg-
ment rates used to determine the appli-
cable interest rate under section 417(e)
(3), and (3) the applicable mortality table
under section 417(e)(3), are treated as
included on the RA List for the year in
which such changes are effective even
though they are not directly referenced
on that RA List. The Treasury Depart-
ment and the IRS anticipate that few
plans have language that will need to be
amended on account of these changes.
The fact that a change in a requirement
is included on the RA List does not neces-
sarily mean that a plan must be amended
as a result of that change. Each plan spon-
sor must determine whether a particu-
lar change in a requirement requires an
amendment to its plan.
V. 2025 REQUIRED AMENDMENTS
LIST
Part A. Changes in requirements that
generally would require an
amendment to most plans or to
most plans of the type affected
by the change and do not relate
to optional plan provisions previ-
ously adopted.
• Modification of required
minimum distribution rules
(SECURE Act sections 114
and 401). Sections 114 and
401 of the SECURE Act
amended section 401(a)(9)
of the Code to provide for
changes to requirements with
respect to required minimum
distributions (RMDs) from
retirement accounts, includ-
ing required beginning dates
and requirements for benefi-
ciaries of retirement accounts.
It generally provides for
delayed required beginning
dates
12
and restricts the abil-
ity to “stretch” RMDs over a
beneficiary’s life expectancy,
with exceptions for certain
designated beneficiaries.
• Required Minimum Distribu-
tions (89 Fed. Reg. 58886).
These final regulations relate
to required minimum distri-
butions from qualified plans;
section 403(b) annuity con-
tracts, custodial accounts, and
retirement income accounts;
individual retirement ac counts
and annuities; and certain
eligible deferred compensa-
tion plans. They address the
required minimum distribution
requirements for plans quali-
fied under section 401(a) and
update the regulations to reflect
the amendments made to sec-
tion 401(a)(9) by sections 114
and 401 of the SECURE Act,
and by certain sections of the
SECURE 2.0 Act.
13
Part B. Changes in requirements that may
require an amendment because
of an unusual plan provision in a
particular plan and do not relate
to optional plan provisions previ-
ously adopted.
• Reform of partnership and
trust attribution rules (89 Fed.
Reg. 106848). This regulation
extends the partnership and
trust attribution rules to the
determination of whether a
11
The remedial amendment period and plan amendment deadline for discretionary changes to the terms of an individually designed qualified or section 403(b) plan are governed by sections
5.03(1)(b), 5.03(2)(b), and 6.02 of Rev. Proc. 2022-40. The remedial amendment period and plan amendment deadline for discretionary changes are not affected by the inclusion of a change
in requirements on an RA List.
12
Although a plan may continue to require that benefits commence in connection with a participant attaining age 70 ½, the plan’s RMD provisions may need to be revised to reflect the changes
regarding required beginning dates.
13
Additional proposed regulations relating to SECURE 2.0 Act changes to the RMD rules will appear on a later RAL upon finalization. See 89 Fed. Reg. 58644.

December 22, 2025 856 Bulletin No. 2025–52
parent-subsidiary controlled
group exists under section
414(c) of the Code (trades or
businesses under common
control). The change applies
to plan years beginning on or
after January 1, 2025.
Part C. Changes in requirements that
relate to optional plan provisions
previously adopted.
• None
VI. DRAFTING INFORMATION
The principal author of this notice
is Tom Morgan of the Office of Associ-
ate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). For further information regard-
ing this notice, contact Mr. Morgan at
(202) 317-6700 (not a toll-free number).
Notice of intent to issue
regulations with respect
to section 530A Trump
accounts
Notice 2025-68
I. PURPOSE
This notice informs taxpayers that the
Department of the Treasury (Treasury
Department) and the Internal Revenue
Service (IRS) intend to propose regula-
tions providing guidance with respect
to section 70204 of Public Law 119-21,
139 Stat. 72 (July 4, 2025), commonly
known as the One, Big, Beautiful Bill Act
(OBBBA). Section 70204 of OBBBA,
which applies to taxable years beginning
after December 31, 2025, added sec-
tion 530A and related sections regarding
Trump accounts to the Internal Revenue
Code (Code).
Section II of this notice provides a
general overview of how Trump accounts
work.
Section III of this notice addresses
certain initial questions related to Trump
accounts that the Treasury Department
and the IRS intend to address in the forth-
coming proposed regulations. The Trea-
sury Department and the IRS expect that
the forthcoming proposed regulations will
be consistent with the guidance set forth in
section III of this notice.
1

Section IV of this notice contains a
request for comments regarding Trump
accounts. Comments received will be
considered in drafting the forthcoming
proposed regulations; however, proposed
regulations regarding the election to open
an initial Trump account and the election
for the pilot program contribution under
section 6434 may be issued prior to the
end of the comment period for this notice.
To the extent comments in response to this
notice regarding these two subjects are
not received in time to consider in draft-
ing those proposed regulations, they will
be considered in drafting the final regula-
tions.
II. GENERAL OVERVIEW
A Trump account is a type of traditional
individual retirement account (IRA) that is
established for the exclusive benefit of an
eligible individual and that is designated
at its establishment as a Trump account.
When the Trump account is opened, the
eligible individual is the owner of the
Trump account and is referred to as the
account beneficiary.
A Trump account is subject to certain
special rules inapplicable to other individ-
ual retirement arrangements under section
408,
2
most of which apply only during the
period that ends before January 1 of the
calendar year in which the account bene-
ficiary attains age 18 (growth period). For
example, a child born on October 1, 2025,
would turn age 18 on October 1, 2043, and
therefore the last day of the growth period
with respect to the child would be Decem-
ber 31, 2042. The special rules that apply
only during the growth period include: (i)
funds in a Trump account can be invested
only in eligible investments, (ii) a Trump
account has a separate contribution limit
from other individual retirement arrange-
ments, (iii) a Trump account is generally
not allowed to make distributions, (iv)
no deduction by an individual is allowed
under section 219 for any contribution to a
Trump account, and (v) trustees of Trump
accounts have similar but different report-
ing requirements from trustees of other
IRAs. After the growth period, most of
these special rules cease to apply and the
rules under section 408 governing tradi-
tional IRAs generally apply, as described
in the “Coordination with IRA rules” dis-
cussion.
Establishment. A Trump account is
established for the exclusive benefit of an
eligible individual. An eligible individual
is any individual (i) for whom an election
is made to establish a Trump account,
(ii) who has not attained age 18 before
the close of the calendar year in which
the election is made, and (iii) for whom
a social security number has been issued
before the date of the election. The Secre-
tary of the Treasury or his delegate (Sec-
retary) will create or organize the Trump
account (initial Trump account) for each
eligible individual.
During the growth period, a subsequent
Trump account (rollover Trump account)
may be established for an individual and
must be funded by a trustee-to-trustee
transfer of the entire account balance from
the individual’s existing Trump account
(qualified rollover contribution).
Trump accounts contribution pilot
program under section 6434 (pilot pro-
gram). Upon an election under the pilot
program, $1,000 is paid by the Secre-
tary to the Trump account of an eligible
child. An eligible child means a qualify-
ing child (as defined in section 152(c))
who is born after December 31, 2024,
and before January 1, 2029, who is a
U.S. citizen, and for whom no prior pilot
program election has been made. Addi-
tionally, the eligible child must have a
social security number that is included
with the election. The $1,000 deposited
into the Trump account under the pilot
program is excepted from reduction or
1
The intended collection of certain information addressed in this notice will be subject to the Paperwork Reduction Act (PRA), 44 U.S.C. 3507. No collection of information will be required
until approved by the Office of Management and Budget (OMB) under the PRA.
2
Individual retirement arrangements are individual retirement accounts under section 408(a) or individual retirement annuities under section 408(b). Use of the term “individual retirement
arrangements” refers to both individual retirement accounts and individual retirement annuities, while the term “IRAs” refers only to individual retirement accounts under section 408(a).

Bulletin No. 2025–52 857 December 22, 2025
offset and is subject to a special rule
regarding interest under section 6611(a).
Individuals making improper elections
under the pilot program are subject to
penalties under section 6659.
Contributions. During the growth
period, there are five types of contribu-
tions that can be made to a Trump account:
(1) a pilot program contribution from
the Secretary of $1,000 for an eligible
child,
(2) qualified general contributions
(funded by states (or political subdi-
visions thereof), the United States, the
District of Columbia, Indian tribal gov-
ernments, or section 501(c)(3) tax-ex-
empt organizations) for members of a
qualified class of account beneficiaries,
(3) employer contributions that are not
includible in the gross income of the
employee under section 128 (section
128 employer contributions),
(4) qualified rollover contributions, and
(5) contributions from other sources
(such as the account beneficiary, par-
ents, or any other person).
Contributions to a Trump account
during the growth period are not includi-
ble in income by the account beneficiary
when made. Pilot program contributions,
qualified general contributions, and sec-
tion 128 employer contributions do not
create basis in a Trump account. Qualified
rollover contributions are transfers from a
prior Trump account and carry over any
basis attributable to the funds being trans-
ferred. Contributions from other sources
during the growth period create basis in
the Trump account.
Unlike contributions to IRAs (which
require an IRA owner to have includi-
ble compensation), contributions may
be made to a Trump account during the
growth period even if the account bene-
ficiary does not have includible compen-
sation. Pilot program contributions, qual-
ified general contributions, and qualified
rollover contributions are not subject to
an annual contribution limit. However, all
other contributions (that is, section 128
employer contributions and contributions
from other sources) during the growth
period are subject to an aggregate annual
limit of $5,000 (subject to cost-of-living
adjustments after 2027).
Contributions to Trump accounts can-
not be made before July 4, 2026.
Eligible investments. During the
growth period, funds in a Trump account
may be invested only in eligible invest-
ments. An eligible investment, generally,
is a mutual fund or exchange traded fund
(ETF) that tracks an index of primarily
U.S. companies, such as the Standard and
Poor’s 500 stock market index, does not
use leverage, does not have annual fees
and expenses of more than 0.1 percent of
the balance of the investment in the fund,
and meets other criteria that the Secretary
determines appropriate.
Distributions. During the growth
period, no distributions may be made from
a Trump account, except for qualified roll-
over contributions, qualified ABLE roll-
over contributions, distributions of excess
contributions, and distributions upon
death of the account beneficiary. After the
growth period (that is, starting January 1
st

of the calendar year in which the account
beneficiary attains age 18), distributions
from a Trump account generally are sub-
ject to the rules that apply to distributions
from a traditional IRA, including that a
distribution may be subject to the section
72(t) 10% additional tax on early distribu-
tions if an exception does not apply with
respect to the account beneficiary (such as
for distributions for qualified higher edu-
cation expenses or first home purchases or
distributions made after age 59½).
Reporting. During the growth period,
Trump accounts are not subject to the
IRA reporting requirements of section
408(i). Instead, Trump accounts are sub-
ject to reporting requirements under sec-
tion 530A(i). The reporting requirements
under section 530A(i) include language
similar to the reporting requirements
for IRAs under section 408(i). How-
ever, section 530A(i) includes additional
reporting requirements that do not apply
to other types of IRAs (such as informa-
tion regarding the source of certain con-
tributions, the investment in the contract
(basis), and a report to the Secretary by
a trustee that accepts a qualified rollover
contribution no later than 30 days after
such contribution is made). A person that
fails to provide a required report under
section 530A(i) is subject to a penalty
under section 6693(a) unless the failure is
due to reasonable cause.
After the growth period, the reporting
requirements of section 408(i) apply to the
Trump account. For any given calendar
year, a Trump account is never subject to
reporting under both sections 408(i) and
530A(i).
Coordination with IRA rules. After the
growth period, nearly all of the special
rules for Trump accounts (including those
relating to contributions, investments,
distributions, and trustee reporting) cease
to apply. Accordingly, after the growth
period, Trump accounts generally will be
subject to the section 408 rules that apply
to other traditional IRAs (such as the rules
related to contributions, distributions,
required minimum distributions, roll-
overs, Roth conversions, ordinary income
taxation, and reporting).
Nevertheless, a Trump account contin-
ues to be a Trump account after the growth
period. An account initially established as
a Trump account can never receive con-
tributions under a section 408(k) SEP
arrangement or section 408(p) SIMPLE
IRA plan. Similarly, an account initially
established as a Trump account can never
be aggregated with other individual
retirement arrangements when allocating
basis related to a distribution from either
the Trump account or another individual
retirement arrangement.
Qualified general contributions. A
qualified general contribution is made
by the Secretary and funded by a gen-
eral funding contribution from a state (or
political subdivision thereof), the United
States, the District of Columbia, an Indian
tribal government, or a section 501(c)(3)
tax-exempt organization. It is distributed
to the Trump accounts of account bene-
ficiaries who are members of a qualified
class.
Section 128 employer contributions.
Section 128 employer contributions paid
to a Trump account of an employee or a
dependent of an employee are not inclu-
dible in the employee’s income. Such
contributions are limited to $2,500, sub-
ject to cost-of-living adjustments after
2027. Section 128 employer contributions
must be made pursuant to a section 128(c)
Trump account contribution program.
Requirements similar to requirements
that apply to a section 129 dependent care
assistance program (regarding discrimina-
tion, eligibility, notification, statements,

December 22, 2025 858 Bulletin No. 2025–52
and benefits) apply to a Trump account
contribution program.
III. DISCUSSION OF CERTAIN
SPECIFIC ISSUES
3
The Treasury Department and the IRS
intend to propose regulations consistent
with the questions and answers in this sec-
tion III.
A. ESTABLISHMENT
Section 530A(a) provides that, except
as provided under section 530A or under
regulations or guidance by the Secretary, a
Trump account is treated in the same man-
ner as an IRA under section 408(a).
Section 530A(b)(1)(A)(i) provides that
a Trump account must initially be cre-
ated or organized by the Secretary for the
exclusive benefit of an eligible individual
or such eligible individual’s beneficia-
ries. Pursuant to section 530A(b)(1)(A)
(ii), a rollover Trump account is a Trump
account that is created or organized in the
United States for the exclusive benefit of
an individual who has not attained age 18
before the end of the calendar year and is
funded by a qualified rollover contribu-
tion.
Section 530A(b)(1)(B) provides that
an account must be designated as a Trump
account at the time of its establishment in
such manner as the Secretary shall pre-
scribe.
Section 530A(b)(1)(C) provides that
the written governing instrument creat-
ing a Trump account must meet certain
requirements regarding contributions, dis-
tributions, and eligible investments.
Section 530A(b)(2) provides that an
“eligible individual” means any individual
for whom an election is made to establish
a Trump account, who has not attained
age 18 before the close of the calendar
year in which the election is made, and for
whom a social security number (within
the meaning of section 24(h)(7)) has been
issued before the election is made.
Section 530A(b)(2)(C) provides that
an election for an eligible individual may
be made by the Secretary if the Secretary
determines (based on information avail-
able to the Secretary from tax returns or
otherwise) that such individual has met
the other requirements to be an eligible
individual and no prior election has been
made for such individual, or by a person
other than the Secretary (at such time and
in such manner as the Secretary may pre-
scribe) for the establishment of a Trump
account if no prior election has been made
for such individual by the Secretary.
Section 530A(e) provides that a “qual-
ified rollover contribution” is a trustee-to-
trustee transfer from a Trump account of
an account beneficiary to another Trump
account for that account beneficiary, but
only if the entire balance of the transfer-
ring Trump account is transferred.
Section 530A(g) provides that, for an
initial Trump account, the Secretary shall
take into account certain criteria in select-
ing the trustee.
Question A-1: How is an initial Trump
account created with respect to an eligible
individual?
Answer A-1: An authorized individ-
ual may elect to have a Trump account
established for the benefit of an eligi-
ble individual by making the election on
IRS Form 4547, Trump Account Elec-
tion(s), or through an online tool or appli-
cation on trumpaccounts.gov. A Trump
account may be established at the same
time as an election is made to receive a
pilot program contribution under section
6434 or at any other time before January
1 of the calendar year in which the benefi-
ciary attains the age of 18. By making the
election, the authorized individual is rep-
resenting, under penalties of perjury, that
he or she is authorized to elect to have the
Trump account opened for the benefit of
the eligible individual.
If an election to open the initial Trump
account is being made at the same time
as an election to receive a pilot program
contribution under section 6434, then the
individual authorized to make the election
under Q&A B-1 of this notice under sec-
tion 6434 is also the authorized individual
for opening the initial Trump account.
If an election to open an initial Trump
account is not being made at the same
time as the election to receive a pilot pro-
gram contribution, then the authorized
individual for opening the initial Trump
account must be a legal guardian, parent,
adult sibling, or grandparent of the eligi-
ble individual, in that order of priority. If
multiple individuals have the same high-
est level of priority and no prior election
has been made for the child, then any
individual with that level of priority may
make the election. For example, if there is
no legal guardian, either parent of an eli-
gible individual may make this election.
This ordering rule of who has the author-
ity to request the creation of an account
was developed based on the ordering rule
of Treas. Reg. § 1.529A-2(c)(1)(C), and
comments are requested on whether the
ordering rule should be based on a differ-
ent method.
Once the IRS processes an election to
open an initial Trump account, the IRS
will process no further elections to open
an initial Trump account for the same eli-
gible individual.
For calendar year 2026, this election
may be made on IRS Form 4547 (once it
is released) at any time, including at the
same time that the 2025 income tax return
is filed or through the online tool or appli-
cation. The online tool or application for
making the elections is expected to be
available on trumpaccounts.gov in the
middle of 2026.
After the election is made (and after
the Treasury Department coordinates with
the trustee of the initial Trump account),
the Treasury Department or its agent will
send information to the individual who
made the election to activate the account
through an authentication process and
complete the opening of the initial Trump
account. The Treasury Department or its
agent will send this information starting
in May 2026. For more information about
how to activate the initial Trump account,
go to trumpaccounts.gov.
The individual who made the elec-
tion for the eligible individual will be the
responsible party for the initial Trump
3
This notice does not address issues that are not under the Code, such as state law issues or other non-tax laws, including, for example, issues related to state laws on age of majority, privacy
issues (such as under the Gramm-Leach-Bliley Act, Pub. L. 106-102, 113 Stat. 1338 (1999)), the USA PATRIOT Act, Pub. L. 107-56, 115 Stat. 272 (2001), or Title I of the Employee Retire-
ment Income Security Act of 1974, Pub. L. 93-406, 88 Stat. 829, as amended (ERISA). The Departments of Labor and Treasury anticipate issuing guidance on how to structure section 128
employer contributions to Trump accounts to ensure that they are not subject to the ERISA coverage framework.

Bulletin No. 2025–52 859 December 22, 2025
account of that eligible individual. To the
extent provided under applicable law and
the account agreement, the responsible
party generally will have the authority
to select among eligible investments (if
applicable), request a transfer for a quali-
fied rollover contribution, request a trans-
fer for a qualified ABLE rollover contri-
bution, or select a successor responsible
party for the account.
Comments are requested as to whether
any guidance will be needed for selecting
a new responsible party (for example, if
the custody or guardianship of an eligible
individual changes or in other appropriate
circumstances).
Q. A-2: What type of individual retire-
ment arrangement is a Trump account?
A. A-2: A Trump account is a tradi-
tional IRA under section 408(a). A Trump
account cannot be an individual retire-
ment annuity under section 408(b), SIM-
PLE IRA under section 408(p), or Roth
IRA under section 408A.
An IRA includes a custodial account
that is treated as a trust pursuant to sec-
tion 408(h). Accordingly, a Trump
account may either be a trust under sec-
tion 408(a) or a custodial account under
section 408(h).
Q. A-3: What type of entity can be a
trustee of a Trump account?
A. A-3: The trustee of a Trump
account must be a bank (as defined in
section 408(n)) or other person who is
approved by the IRS to be a nonbank
trustee of a Trump account. Any person
approved by the IRS as of December 31,
2025, to be a nonbank trustee of an IRA
under section 408(a) is automatically
approved to be a nonbank trustee of a
Trump account.
Pursuant to Treas. Reg. § 1.408-2(e)
(6)(iv), an approved nonbank trustee must
notify the IRS, in writing, of any change
that affects the continuing accuracy of any
representation made in the application
required by that paragraph, whether the
change occurs before or after the applicant
receives a notice of approval. Becom-
ing a Trump account trustee constitutes
such a change. Such notification should
be sent to Internal Revenue Service,
Attn: SE:T:EP:RA:T1, Room 6213, 1111
Constitution Ave, NW, Washington, DC
20224. The Treasury Department and
the IRS are considering changes to the
requirements for nonbank trustees and
request comments.
Other persons may request approval
to be a nonbank trustee in accordance
with the procedures set forth in Treas.
Reg. § 1.408-2(e) (relating to IRA
nonbank trustees) and section 3.07 of
Rev. Proc. 2025-4, 2025-1 IRB 158 (or
successor revenue procedures).
Pursuant to section 530A(g), the Trea-
sury Department will select one or more
financial institutions as a financial agent
to serve as trustee of the initial Trump
accounts. The trustees of rollover Trump
accounts are not subject to the selection
process of section 530A(g).
Q. A-4: When may a rollover Trump
account be established?
A. A-4: A rollover Trump account for
an account beneficiary may be established
only after the initial Trump account is
created by the Treasury Department or its
agent for the account beneficiary and only
during the growth period of the account
beneficiary.
Q. A-5: How is a rollover Trump
account initially funded?
A. A-5: A rollover Trump account must
first be funded by a qualified rollover
contribution before receiving any other
contribution. In addition, a qualified roll-
over contribution must be a transfer of the
entire balance of a Trump account. As a
result, there can only be one funded Trump
account for an individual at any time.
Thus, when a rollover Trump account is
established, a qualified rollover contribu-
tion must be initiated to fund the account.
A receiving trustee will be required to
have procedures in place to confirm that
the first contribution to the rollover Trump
account is a qualified rollover contribu-
tion. See Q&A F-4 of this notice regarding
a requirement that the transferring trustee
provide a report to the receiving trustee
that the transferring account is a Trump
account.
To the extent that a trailing dividend
attributable to the transferring Trump
account is received by the transferring
trustee after a qualified rollover contribu-
tion has occurred, the transferring trustee
must promptly transfer the trailing div-
idend to the rollover Trump account that
received the qualified rollover contribu-
tion. Such transfer is treated as part of the
original qualified rollover contribution.
Q. A-6: What happens to the trans-
ferring Trump account after a qualified
rollover contribution to a rollover Trump
account?
A. A-6: After making a qualified roll-
over contribution, no new contributions
may be accepted by the transferring
Trump account and the transferring Trump
account must be closed within a reason-
able period of time.
Q. A-7: After the growth period, may
a rollover Trump account be established?
A. A-7: No. An individual must not
have attained age 18 before the end of the
calendar year in which a rollover Trump
account for the individual is established.
Accordingly, after the growth period, a
new rollover Trump account cannot be
established, and therefore no qualified
rollover contributions can be made to a
new rollover Trump account.
After the growth period, a Trump
account may be rolled over to an indi-
vidual retirement arrangement or other
eligible retirement plan (described in
section 402(c)(8)(B)(iii) through (vi)) for
the benefit of the account beneficiary pur-
suant to section 408(d)(3)
4
or transferred
in a trustee-to-trustee transfer to an indi-
vidual retirement arrangement (including
a transfer to another individual retirement
arrangement maintained by the same
trustee) pursuant to Rev. Rul. 78-406,
1978-2 CB 157.
Q. A-8: How is an account designated
as a Trump account?
A. A-8: The written governing instru-
ment establishing a Trump account must
clearly designate the IRA as a Trump
account at the time of establishment.
Accordingly, an existing account (such
as an IRA) cannot be amended to become
4
Pursuant to section 408(d)(3)(A)(ii), if there is basis in the Trump account, the Trump account cannot be rolled over, or transferred in a trustee-to-trustee transfer, to an eligible retirement
plan described in section 402(c)(8)(B)(iii) through (vi), but may still be rolled over, or transferred in a trustee-to-trustee transfer, to an individual retirement arrangement.

December 22, 2025 860 Bulletin No. 2025–52
a Trump account. In addition, a Trump
account must be titled to clearly identify
that the account is a Trump account for the
benefit of the account beneficiary.
Q. A-9: What are the basic require-
ments for a written governing instrument
for a Trump account?
A. A-9: A Trump account is an IRA,
and therefore the written governing instru-
ment must generally contain the require-
ments of section 408(a)(1) through (6),
which apply to other IRAs, as well as the
requirements of section 530A(b)(1)(C)
(i) through (iii), which apply to Trump
accounts.
The written governing instrument gen-
erally should reflect both the rules that
apply during the growth period and the
rules that apply after the growth period.
For example, during the growth period,
the limit on contributions is governed by
section 530A(c)(2), while after the end
of the growth period, the limit on contri-
butions is governed by section 408(a)(1).
In contrast, certain other requirements of
section 408 apply both during and after the
growth period, such as the requirement of
section 408(a)(1) that contributions (other
than rollovers) must be made in cash, and
the other requirements of section 408(a)
(2) through (5). Similarly, some restric-
tions regarding Trump accounts will
continue to apply even after the growth
period, such as the prohibition against a
Trump account receiving contributions
under a SEP arrangement under section
408(k) or a SIMPLE IRA plan under sec-
tion 408(p).
The Treasury Department and IRS will
release sample language in future guid-
ance regarding Trump accounts.
Q. A-10: May the written governing
instrument of a Trump account provide
that, immediately after the growth period
of the account beneficiary, all of the assets
of the account will be transferred automat-
ically to a traditional IRA for the account
beneficiary that is not a Trump account?
A. A-10: Yes. The written govern-
ing instrument of the Trump account
may provide that, immediately after the
growth period, all of the assets of the
Trump account will be transferred to a
traditional IRA for the account bene-
ficiary that is not a Trump account and
that is maintained by the same trustee as
that of the transferring Trump account.
The provision would be a contractual
term agreed to by, or on behalf of, the
trustee and the account beneficiary, and
the transfer must be done in accordance
with any applicable requirements of
the Code and only if permitted by other
applicable law. If the written governing
instrument for a Trump account contains
such a provision, then the written gov-
erning instrument does not need to reflect
rules that would apply after the growth
period because the Trump account would
not remain open after the growth period.
B. PILOT PROGRAM
Section 6434(a) and (d) provide that,
if an election is made (at such time and
manner as the Secretary provides) by an
individual for an eligible child of the indi-
vidual, the eligible child will be treated as
making a payment against the income tax
imposed (for the taxable year for which
the election was made) of $1,000. Sec-
tion 6434(b) provides that the amount of
such payment will be paid by the Secre-
tary to the Trump account of the eligible
child.
Section 6434(c) provides that an “eli-
gible child” means a qualifying child
(as defined in section 152(c)) born after
December 31, 2024, and before Janu-
ary 1, 2029, for whom a prior election for
a pilot program contribution has not been
made, and who is a U.S. citizen.
Section 6434(e) provides that the elec-
tion must include the eligible child’s social
security number, which must have been
issued to the child before the election.
Q. B-1: How is an election to receive a
pilot program contribution with respect to
an eligible child made?
A. B-1: The election to receive a pilot
program contribution with respect to an
eligible child must be made by an indi-
vidual who anticipates that the eligible
child will be his or her qualifying child (as
defined in section 152(c)) for purposes of
section 6434 for the tax year in which the
election is made. If an individual makes
an election in anticipation that the eligible
child will be the individual’s qualifying
child under section 152(c) and complies
with all other rules promulgated by the
Secretary for section 6434 elections, the
election will not be rendered ineffective
solely on the basis that it is later deter-
mined that the eligible child does not meet
the definition of a qualifying child of the
individual for the tax year in which the
election is made. This election is made on
an IRS Form 4547 or through an online
tool or application on trumpaccounts.gov.
For calendar year 2026, this election
may be made on IRS Form 4547 (once
it is released) at any time, including at
the same time that the 2025 income tax
return is filed or through the online tool or
application. The online tool or application
is expected to available in the middle of
2026.
If the election for the pilot program
contribution with respect to an eligible
child is made at the same time as the elec-
tion to open an initial Trump account of
the eligible child, then the pilot program
contribution will be made to the initial
Trump account.
Q. B-2: When will a pilot program con-
tribution be made with respect to an eligi-
ble child?
A. B-2: A pilot program contribution
will be deposited into the Trump account
of an eligible child no earlier than July 4,
2026. The Treasury Department will make
the pilot program contribution as soon as
practicable after the election is made and
the Treasury Department can confirm with
the initial Trump account trustee that the
account has been opened.
C. CONTRIBUTIONS
Section 530A(b)(1)(C)(i) provides
that the written governing instrument of
a Trump account must meet the require-
ments that no contribution will be
accepted (I) before July 4, 2026, or (II)
if the contribution would cause aggregate
contributions (other than exempt contribu-
tions, which consist of qualified rollover
contributions, pilot program contribu-
tions, or qualified general contributions)
to exceed the limit under section 530A(c)
(2)(A) for contributions during the growth
period. The limit for aggregate contribu-
tions (other than exempt contributions)
is $5,000 per year for 2026 and 2027,
and thereafter is subject to cost-of-living
adjustments.
Section 530A(c)(3) provides that sec-
tion 219(f)(3) (regarding the time at which
contributions are deemed made) will not
apply to any contribution to a Trump

Bulletin No. 2025–52 861 December 22, 2025
account for any taxable year ending during
the growth period.
Section 530A(h)(3) provides that,
during the growth period, a contribution to
a Trump account is not taken into account
in applying the contribution limits to indi-
vidual retirement arrangements that are
not Trump accounts.
Q. C-1: Is a trustee of a Trump account
required to have procedures to prevent a
contribution from exceeding the annual
limit under section 530A(c)(2)(A) during
the growth period?
A. C-1: Yes. A trustee must have pro-
cedures in place to monitor and enforce
the prohibition of section 530A(b)(1)(C)
(i)(II) (that is, to prevent a contribution
from being accepted by a Trump account
if the contribution would cause aggregate
contributions (other than exempt contri-
butions) to exceed the limit under section
530A(c)(2)(A)). It is not sufficient merely
for a written governing instrument of a
Trump account to state the prohibition of
section 530A(b)(1)(C)(i)(II); the trustee
must comply with the prohibition. The
procedures may, but are not required to,
be in the written governing instrument.
The Treasury Department and the
IRS are considering permitting trustees
to have a procedure that would permit
the trustee to receive a contribution into
a general account of the trustee and then
transfer to the Trump account the portion
of the contribution that does not cause
the aggregate contributions to exceed
the section 530A(c)(2)(A) limit. Under
such procedure, any amount that exceeds
the section 530A(c)(2)(A) limit would
be returned by the trustee to the contrib-
utor rather than transferred to the Trump
account. Because only the permitted
amount would actually be transferred to
the Trump account, there would not be a
violation of section 530A(b)(1)(C)(i)(II)
and the return of the excess amount would
not be subject to the rules regarding dis-
tributions of excess contributions in sec-
tion 530A(d)(5).
A trustee could also have procedures in
place to not accept any part of a contri-
bution if accepting the contribution would
cause aggregate contributions to exceed
the section 530A(c)(2)(A) limit.
Q. C-2: Is a trustee of a Trump account
required to collect and report information
regarding the source of contributions?
A. C-2: Yes. A trustee is required to col-
lect and report the amount and source of
contributions. See section 530A(i)(1)(A)
and Q&A F-2 of this notice regarding this
reporting requirement. In order to comply
with this reporting requirement, a trustee
must collect information on whether a
contribution is one of the following types
of contributions: (1) a pilot program con-
tribution or a qualified general contribu-
tion, (2) a qualified rollover contribution,
(3) a section 128 employer contribution,
or (4) any other type of contribution.
A pilot program contribution and a
qualified general contribution will be
received by the trustee of a Trump account
from the Treasury Department, and the
Treasury Department will indicate to the
trustee what type of contribution it is,
and for a general funding contribution,
will provide information regarding the
contributor of the general funding con-
tribution, if requested by the contributor.
See Q&A F-2 of this notice. A qualified
rollover contribution will be identified
as such by the transferring trustee to the
receiving trustee. As described in Q&A
I-2 of this notice, an employer that makes
a section 128 employer contribution will
be required to affirmatively indicate to the
trustee that the contribution is a section
128 employer contribution. The trustee is
not required to collect source information
for any contribution that is not a pilot pro-
gram contribution, qualified general con-
tribution, qualified rollover contribution,
or section 128 employer contribution.
Q. C-3: May contributions be made to a
Trump account and to an individual retire-
ment arrangement that is not a Trump
account for the same individual during the
growth period?
A. C-3: Yes, contributions may be
made to a Trump account and to an indi-
vidual retirement arrangement that is not
a Trump account for the same individ-
ual during the growth period. During the
growth period, contributions that are not
exempt contributions may be made to a
Trump account up to the section 530A(c)
(2) limit and without regard to whether
the account beneficiary has compensa-
tion. Contributions also may be made to
an individual retirement arrangement that
is not a Trump account for the benefit of
the account beneficiary in accordance
with section 408 if the account beneficiary
has includible compensation under section
219(b)(1).
Q. C-4: May a contribution to a Trump
account be treated as made in the pre-
ceding taxable year if the contribution is
made by the due date of the return for such
preceding taxable year?
A. C-4: No. For any taxable year end-
ing during the growth period, a contribu-
tion to a Trump account is counted for the
year in which the contribution is made (so
that a contribution to a Trump account
made on January 31, 2027, is for 2027 and
cannot be applied to 2026).
D. ELIGIBLE INVESTMENTS
Section 530A(b)(1)(C)(iii) provides
that, during the growth period, no part of
the Trump account funds may be invested
in any asset other than an eligible invest-
ment.
Section 530A(b)(3)(A) provides that an
“eligible investment” means any mutual
fund or ETF which (i) tracks the returns of
a qualified index, (ii) does not use lever-
age, (iii) does not have annual fees and
expenses of more than 0.1 percent of the
balance of the investment in the fund, and
(iv) meets such other criteria as the Secre-
tary determines appropriate.
Section 530A(b)(3)(B) provides that
a “qualified index” means the Standard
and Poor’s 500 stock market index, or any
other index which is comprised of equity
investments in primarily U.S. companies
and for which regulated futures contracts
(as defined in section 1256(g)(1)) are
traded on a qualified board or exchange
(as defined in section 1256(g)(7)). Sec-
tion 530A(b)(3)(B) also provides that the
term qualified index does not include any
industry or sector-specific index but may
include an index based on market capital-
ization.
Q. D-1: What do the terms “mutual
fund” and “exchange traded fund” (or
ETF) mean for purposes of section
530A(b)(3)?
A. D-1: For purposes of section
530A(b)(3), a mutual fund or ETF must
be a domestic corporation (including a
regulated investment company as defined
in section 851(a)) for Federal income tax
purposes that meets the additional require-
ments to be a mutual fund or ETF in the
following paragraphs.

December 22, 2025 862 Bulletin No. 2025–52
For purposes of section 530A(b)(3), a
mutual fund must be registered under the
Investment Company Act of 1940, Pub.
L. 76-768, 54 Stat. 789 (the 1940 Act),
as amended, as an open-end company (as
defined in 15 U.S.C. § 80a-5(a)(1)) that is
not an ETF (as defined below).
For purposes of section 530A(b)(3),
an ETF must be registered under the 1940
Act and must be either an “exchange-
traded fund” as defined for purposes of the
1940 Act in 17 C.F.R. § 270.6c-11(a)(1) or
an entity that operates in substantially the
same manner as such a fund but that is not
described in 17 C.F.R. § 270.6c-11(a)(1)
because the entity is not a registered open-
end management company (for example,
a unit investment trust operating under an
exemptive order granted by the Securities
and Exchange Commission).
Comments are requested regarding the
definitions of mutual fund and ETF.
Q. D-2: What does it mean to track the
returns of an index for purposes of sec-
tion 530A(b)(3)(A)(i)?
A. D-2: A mutual fund or ETF tracks the
returns of an index if its investment objec-
tive is to provide investment results that,
before fees and expenses, replicate the per-
formance of the index, and the fund holds
investments that are reasonably expected
to accomplish that objective. For example,
a fund may track the returns of an equity
index by holding shares of all of the stocks
that are constituents of the index in propor-
tion to the stocks’ weights in the index. A
fund does not fail to track the returns of an
index merely because the returns from the
fund are affected by fees, expenses, trading
costs, variations arising from buying and
selling securities when the relevant index
changes, and similar variations incidental
to operating a fund that seeks to replicate
the performance of an index.
A mutual fund or ETF is not consid-
ered to track the returns of an index if its
investment objective is to provide invest-
ment results that are inverse to the perfor-
mance of the index (or inverse to a posi-
tive multiple of the index). A fund also is
not considered to track the returns of the
index if the fund uses any strategy to out-
perform or perform differently from the
index. For example, a fund that increases
or decreases its exposure to some index
constituents based on the judgment of
advisors does not track the returns of the
index. Similarly, a fund that, in some or all
market conditions, holds assets intended to
decrease or increase the volatility, risk, or
current income associated with the index
does not track the returns of the index.
Q. D-3: What is considered “leverage”
for purposes of section 530A(b)(3)(A)(ii)?
A. D-3: A mutual fund or ETF is con-
sidered to use leverage if, as a result of
the fund’s use of borrowings, derivatives,
or other strategies that are economically
equivalent to borrowings, a percentage
change in the level of an index tends to
cause a materially greater percentage
change in the value of the fund’s portfo-
lio. For example, a fund is considered to
use leverage if it has a purpose to provide
investment results that correspond to the
performance of an index multiplied by a
number greater than one (regardless of
whether the fund uses borrowings, deriv-
atives, or another economic equivalent to
provide such results).
A fund is not considered to use lever-
age merely because the fund borrows for
other purposes, such as to provide liquid-
ity for redemptions or for purchases of
portfolio securities in connection with
investment flows into the fund. Similarly,
a fund is not considered to use leverage
merely because it enters into derivatives
as part of its strategy to replicate the per-
formance of an index.
Q. D-4: What does it mean to have
annual fees and expenses of no more than
0.1 percent of the balance of the invest-
ment in a mutual fund or ETF for purposes
of section 530A(b)(3)(A)(iii)?
A. D-4: A mutual fund or ETF will
meet the requirements of section 530A(b)
(3)(A)(iii) if the sum of its annual fees and
its annual expenses (as described below)
is less than 0.1% of the value of the fund’s
net assets.
For purposes of section 530A(b)(3)
(A)(iii), a fund’s annual fees include any
annual or recurring fees charged by the
fund directly to the investor. These fees
are disclosed in a fund’s prospectus, often
under the heading “Shareholder Fees” or
“Unitholder Fees” in a fee table. Comments
are requested on the appropriate treatment
of fees charged for transactions, such as
sales charges or loads or redemption fees.
For purposes of section 530A(b)(3)(A)
(iii), a fund’s annual expenses will be the
amount set forth in its prospectus, often
in the fee table, as total annual operating
expenses. These are generally expenses that
an investor bears each year indirectly in the
form of reduced income from the invest-
ment in the fund or a reduction in value of
the investor’s investment in the fund. The
total is generally stated as a percentage of
the value of the investor’s investment, or
as a percentage of the value of the fund’s
net assets. The reference to expenses in
section 530A(b)(3)(A)(iii) is understood
to refer to these commonly cited metrics,
even though they may omit certain costs,
such as trading costs. If a fund’s prospec-
tus lists total operating expenses reduced
by fee waivers or expense reimbursements,
the reduced amount applies for purposes of
section 530A(b)(3)(A)(iii).
Annual fees and annual expenses
would not include any amount that is paid
to a broker or intermediary and that is not
specified or imposed by or on behalf of the
fund, such as a broker’s sales commission.
Comments are requested regarding the
determination of whether a mutual fund or
ETF meets the 0.1 percent threshold.
Q. D-5: How is the determination that
an index is comprised of equity invest-
ments in primarily U.S. companies made
for purposes of section 530A(b)(3)(B)(ii)
(I)?
A. D-5: An index is considered to be
comprised of equity investments if the
index is comprised entirely of stocks and
similar ownership interests in the form of
partnership or membership interests. An
index is not comprised of equity invest-
ments if it includes debt instruments,
derivatives, or any other asset that is not
an ownership interest in a company.
A company is a U.S. company if it is
domestic under section 7701(a)(4). Under
a safe-harbor rule, an index will be treated
as comprised of “primarily” U.S. com-
panies for purposes of section 530A(b)
(3)(B)(ii)(I) if U.S. companies represent
at least 90 percent of the index based on
their weighting in the index.
5
Comments
5
Many indexes that are focused on U.S. equities include some issuers that are not domestic for Federal income tax purposes because they are domiciled outside the United States. The Standard
and Poor’s 500 stock market index, for example, includes several companies that are not U.S. companies.

Bulletin No. 2025–52 863 December 22, 2025
are requested regarding the 90 percent
threshold.
Q. D-6: What is an industry-specific
index or a sector-specific index for pur-
poses of section 530A(b)(3)(B)?
A. D-6: An index is industry-specific
or sector-specific if the inclusion of a
company depends on the kind of busi-
ness or industry in which the company
is engaged. For example, an index that
includes companies operating in only
one industry, such as the hotel industry or
the airline industry, or sector, such as the
travel sector, healthcare sector, or tech-
nology sector, is an industry-specific or
sector-specific index. So-called environ-
mental, social, and governance indexes
are also sector-specific indexes.
The fact that an index is based on mar-
ket capitalization does not make the index
an industry-specific or sector-specific
index. An index is based on market cap-
italization if the index is limited to com-
panies with market capitalizations within
a specified range.
Q. D-7: Is a trustee of a Trump account
required to have procedures to prevent
any part of the account funds from being
invested in any asset other than an eligible
investment during the growth period?
A. D-7: Yes. A trustee must have proce-
dures in place to monitor and enforce the
prohibition of section 530A(b)(1)(C)(iii)
(that is, to prevent any part of the account
funds from being invested in any asset
other than an eligible investment during
the growth period). It is not sufficient
merely for a written governing instrument
of a Trump account to state the prohibition
of section 530A(b)(1)(C)(iii); the trustee
must comply with the prohibition. The
procedures may, but are not required to,
be in the written governing instrument.
Such trustee procedures must include at
least the following: (1) during the growth
period, the trustee must offer only eligible
investments as investment options for a
Trump account, and (2) during the growth
period, the trustee must select a default
eligible investment and must promptly
invest any uninvested funds in the default
eligible investment, unless directed by
or on behalf of the account beneficiary
to invest the funds in a different eligible
investment.
But see Q&As D-8 and D-9 of this
notice for limited situations in which
funds need not be invested in eligible
investments. Comments are requested to
identify other situations in which it would
not be inappropriate for funds to remain
uninvested for a de minimis amount of
time.
Q. D-8: During the growth period, may
funds in a Trump account be invested in a
money market fund or held in cash?
A. D-8: No, with limited exceptions for
cash. Money market funds and cash are
not eligible investments. However, during
the growth period, the trustee’s procedures
may permit an amount received as a con-
tribution, a dividend or other distribution
from an eligible investment, or an amount
received as a result of a disposition (such
as sale) of an eligible investment, to be
held in cash for the time reasonably nec-
essary to complete the investment of the
amount in an eligible investment.
Q. D-9: During the growth period, what
happens if an eligible investment becomes
ineligible due to a change with respect to
the fund?
A. D-9: During the growth period, the
trustee’s procedures must require reason-
able ongoing monitoring by the trustee
regarding whether a fund held by a Trump
account continues to be an eligible invest-
ment. For example, a fund may cease to be
an eligible investment if the fund’s annual
fees and expenses increase or an index
tracked by the fund ceases to be a quali-
fied index. The Treasury Department and
the IRS are considering safe harbor pro-
cedures regarding the reasonable ongoing
evaluation procedure (including the fre-
quency of the evaluations, among other
aspects), and request comments regarding
such safe harbor procedures.
In the event that a fund held by a Trump
account ceases to be an eligible invest-
ment during the growth period, the Trump
account will no longer be permitted to
be invested in such fund. Accordingly,
the Treasury Department and the IRS
are considering providing in future guid-
ance that the trustee’s procedures must
require the trustee of the Trump account
to sell the fund and invest the proceeds in
another eligible investment. Comments
are requested on this issue of handling
ineligible investments.
Q. D-10: May account funds be
invested among more than one eligible
investment?
A. D-10: Yes. Section 530A does not
require that all funds in a Trump account
be invested in a single eligible investment.
Trustees may permit funds in a Trump
account to be invested in multiple eligible
investments.
E. DISTRIBUTIONS
Section 530A(b)(1)(C)(ii) provides
that the written governing instrument of
a Trump account must meet the section
530A(d)(1) requirement that no distribu-
tion will be allowed during the growth
period, except for a distribution that is a
qualified rollover contribution or qualified
ABLE rollover contribution, a distribution
of excess contributions, or a distribution
upon the death of the account beneficiary.
Section 530A(d)(4)(B) provides that a
“qualified ABLE rollover contribution” is
a trustee-to-trustee transfer of the entire
balance of a Trump account, made during
the calendar year in which an account ben-
eficiary attains age 17 to an ABLE account
of that account beneficiary.
Section 530A(d)(6) provides that if
the account beneficiary dies during the
growth period, the account shall cease
to be a Trump account as of the date of
death, and the fair market value of the
account (reduced by basis) shall be inclu-
dible in the gross income of the person
who acquires the account beneficiary’s
interest in the account (or, if that person is
the account beneficiary’s estate, then the
account beneficiary).
Section 529A(b)(2)(B) was amended
by section 70204(a)(2)(A) of OBBBA to
exclude qualified ABLE rollover contri-
butions from the annual contribution lim-
its for an ABLE account.
Q. E-1: Is a trustee of a Trump account
required to have procedures to prevent
distributions during the growth period
other than certain permitted distributions?
A. E-1: Yes. A trustee must have pro-
cedures in place to monitor and enforce
the prohibition of section 530A(b)(1)
(C)(ii) of the Code that prohibits distri-
butions during the growth period other
than permitted distributions, which are
distributions that are qualified rollover
contributions or qualified ABLE rollover
contributions, distributions of excess
contributions, or distributions upon the
death of the account beneficiary. It is not

December 22, 2025 864 Bulletin No. 2025–52
sufficient merely for a written governing
instrument of a Trump account to state
the prohibition of section 530A(b)(1)(C)
(ii); the trustee must comply with the pro-
hibition. The procedures may, but are not
required to, be in the written governing
instrument.
Comments are requested regarding the
applicability of withholding under sec-
tion 3405 for distributions from a Trump
account during the growth period (other
than distributions that are qualified roll-
over contributions).
Q. E-2: During the growth period, is it
permissible for a trustee to make a hard-
ship distribution from a Trump account or
to close a Trump account and distribute
the account funds to the account benefi-
ciary?
A. E-2: No. During the growth period,
the only permitted distributions are those
described in Q&A E-1 of this notice. Thus,
a trustee is not permitted to make a hard-
ship distribution from a Trump account or
to close the Trump account and distribute
the account funds to the account benefi-
ciary.
Q. E-3: When can a rollover be made
from the Trump account of an account
beneficiary to an ABLE account of the
account beneficiary?
A. E-3: During the growth period, a
qualified ABLE rollover contribution
from a Trump account can be made only
during the calendar year in which the
account beneficiary attains age 17 (and
not in any prior calendar year). After the
growth period, a Trump account cannot be
rolled over under section 408(d)(3) into an
ABLE account.
Q. E-4: What happens upon the death
of the account beneficiary of a Trump
account?
A. E-4: If an account beneficiary of
a Trump account dies after the growth
period, the rules that apply to other indi-
vidual retirement arrangements after the
death of the account owner apply (for
example, if the inheriting beneficiary
of the account is a parent of the account
beneficiary, the account would become an
inherited IRA for the benefit of that parent
pursuant to section 408(d)(3)(C)(ii), and
would be subject to the required minimum
distribution rules that apply in such a case
to other IRAs pursuant to section 408(a)
(6)).
However, if the account beneficiary
dies during the growth period, the rules of
section 530A(d)(6) apply, and the account
ceases to be both a Trump account and an
IRA as of the date of death. In such a case,
the account is treated as if all the assets of
the account were distributed on the date of
death and, as a result, gross income of the
inheriting beneficiary will include the fair
market value of the assets as of the date
of death (reduced by basis). If the inherit-
ing beneficiary is the estate of the account
beneficiary, the amount will be included
in the gross income of the account ben-
eficiary for the last taxable year of the
account beneficiary.
F. REPORTING
Section 530A(h)(1) provides that the
IRA reporting rules under section 408(i)
do not apply to a Trump account during
the growth period.
Section 530A(i)(1) and (3) provides that,
during the growth period, the trustee of a
Trump account shall report to the Secretary
and to the account beneficiary informa-
tion with respect to contributions accepted
(including the amount and source of any
contribution over $25 made by a person
other than the Secretary, the account ben-
eficiary or his or her parent or legal guard-
ian), distributions (including distributions
which are qualified rollover contributions),
the fair market value of the account, the
basis with respect to the account, and such
other matters as the Secretary may require.
Section 530A(i)(2) and (3) provides
that, during the growth period, a trustee
that receives a qualified rollover contribu-
tion shall report to the Secretary, not later
than 30 days after the date of the quali-
fied rollover contribution, information
regarding the account beneficiary (name,
address, and social security number), the
new Trump account (trustee name and
address, account number, routing num-
ber), and such other information as the
Secretary may require.
Q. F-1: When and how must a trustee
provide reports under section 530A(i)(1)?
A. F-1: A trustee must provide cer-
tain annual reporting for Trump accounts
under section 530A(i)(1) to the Secretary
and the account beneficiary. Forms and
instructions regarding such annual report-
ing will be issued in the future.
Additionally, trustees of Trump
accounts will be required to provide cer-
tain disclosures to account beneficiaries.
The disclosure requirements for Trump
accounts generally will be similar to the
disclosure requirements for other IRAs
under Treas. Reg. § 1.408-6. Comments
are requested regarding such disclosure
requirements.
Q. F-2: What information regarding
the source of contributions must a trustee
report to the Secretary and the account
beneficiary under section 530A(i)(1)?
A. F-2: In order to comply with
required reporting of sources of contribu-
tions, trustees will need to report on the
aggregate amount of contributions for the
year under each of the following cate-
gories as part of the annual reporting for
Trump accounts:
(1) exempt contributions (which consist
of qualified rollover contributions,
pilot program contributions, and
qualified general contributions),
(2) section 128 employer contributions,
and
(3) any other contributions (such as con-
tributions from the account benefi-
ciary, parents, or any other person).
Additionally, the trustee will report the
amount and the identity of a contributor
making the general funding contribution
that is related to a qualified general con-
tribution, if the contributor requests to be
identified. This additional reporting of the
amount and identity applies only to con-
tributors making general funding contri-
butions.
Q. F-3: How will trustees obtain the
information regarding the source of con-
tributions?
A. F-3: A pilot program contribution is
made by the Treasury Department or its
agent and it will be identified as such by
the Treasury Department or its agent when
the contribution is made.
A qualified general contribution is
transferred by the Treasury Department
or its agent to the trustees of the applica-
ble Trump accounts (but the source of the
contribution is the contributor who makes
the underlying general funding contri-
bution), and it will be identified as such
by the Treasury Department or its agent
when the contribution is transferred to the
trustee. If the contributor of the general
funding contribution requests it (see Q&A

Bulletin No. 2025–52 865 December 22, 2025
H-2 of this notice), the Treasury Depart-
ment or its agent will provide the identity
of the contributor to the trustee when the
qualified general contribution is trans-
ferred to the trustee.
As described in Q&A I-2 of this
notice, an employer making a section 128
employer contribution will be required to
affirmatively identify the contribution as
such when the contribution is made.
The sources of all other contributions
do not need to be separately identified
when such contributions are made.
Q. F-4: What reporting must be done
related to a qualified rollover contribution
under section 530A(i)(2)?
A. F-4: Under section 530A(i)(2)
reporting will be made to the Treasury
Department by a trustee of a rollover
Trump account that receives a qualified
rollover contribution (receiving trustee),
and such reporting must be done within
30 calendar days of the qualified rollover
contribution. In order to comply with
required qualified rollover contribution
reporting, a receiving trustee will need
to provide an electronic report to the
Treasury Department or its agent. The
Treasury Department is evaluating ways
for a receiving trustee to provide this
reporting in a secure, electronic format
and is also evaluating ways to reduce
the burden on trustees through automatic
reporting simultaneously with a qual-
ified rollover contribution. Comments
are requested regarding this proposed
reporting format.
In addition to the reporting required
under section 530A(i)(2), when the trustee
of a Trump account transfers a qualified
rollover contribution, the transferring
trustee promptly must provide a report to
the receiving trustee (but not to the Trea-
sury Department or account beneficiary)
identifying the transferring account as a
Trump account and providing informa-
tion regarding the basis in the transferred
Trump account and the contributions
received by the transferring trustee for the
calendar year in which the qualified roll-
over contribution occurs. This informa-
tion is necessary in order for the receiv-
ing trustee to confirm that the transfer is
a qualified rollover contribution from a
Trump account, to be able to accurately
report the information required pursuant
to section 530A(i)(1), and to enforce the
prohibition under section 530A(b)(1)(C)
(i) (regarding not accepting a contribution
that would exceed the section 530A(c)(2)
limit). No particular form or format would
be required for this trustee-to-trustee
reporting.
G. COORDINATION WITH IRA
RULES
Section 408(d)(1) provides that any
amount distributed out of an individual
retirement arrangement shall be includible
in gross income in the manner provided
under section 72. Section 72(e)(8)(B) pro-
vides that the amount allocated to basis is
the portion of the distribution which bears
the same ratio to the distribution as the
basis bears to the account balance.
Section 408(d)(2) provides that, for
purposes of applying section 72, all indi-
vidual retirement arrangements are treated
as one contract and all distributions during
any taxable year are treated as one distri-
bution.
Section 530A(a) provides that a Trump
account shall be treated in the same man-
ner as an IRA, except as provided by sec-
tion 530A or under guidance established
by the Secretary.
Section 530A(h)(1) provides that the
rules of section 408(k) (regarding SEP
arrangements) and (p) (regarding SIM-
PLE IRA plans) do not apply to a Trump
account, and, during the growth period,
section 408(d) (regarding the tax treat-
ment of individual retirement arrangement
distributions) and section 408(i) (regard-
ing IRA reporting) do not apply.
Section 530A(h)(4) provides that the
individual retirement arrangement aggre-
gation rule of section 408(d)(2) must be
applied separately with respect to Trump
accounts and other individual retirement
arrangements.
Q. G-1: After the growth period, what
rules apply regarding the taxation of dis-
tributions from a Trump account?
A. G-1: After the growth period, distri-
butions from a Trump account are subject
to the individual retirement arrangement
distribution rules under section 408(d),
which generally apply to Trump accounts
in the same manner as distributions from
other traditional individual retirement
arrangements. For example, distributions
of amounts that are allocable to basis are
not includible in gross income but all
other amounts, including all earnings of
the account, would be included in gross
income upon distribution.
However, section 408(d)(2) is applied
separately with respect to a Trump account
and other individual retirement arrange-
ments. Accordingly, after the growth
period, the portion of a distribution from
a Trump account that is allocated to basis
in the account is the portion of the distri-
bution that bears the same ratio to the total
amount of the distribution as the individu-
al’s total basis in the Trump account bears
to the total value of the individual’s Trump
account. In addition, at all times, Trump
accounts are disregarded for purposes of
determining the portion of a distribution
from a traditional individual retirement
arrangement that is not a Trump account
that is allocated to basis.
The Treasury Department and the IRS
anticipate issuing additional guidance
with respect to this tax treatment for indi-
vidual retirement arrangements in general.
However, see Q&A A-10 of this notice
regarding a permissible provision in the
written governing instrument for an auto-
matic trustee-to-trustee transfer to a tra-
ditional IRA that is not a Trump account
after the growth period.
Q. G-2: Does a Trump account cease to
be a Trump account immediately after the
growth period?
A. G-2: No. Because of the continu-
ing prohibition against a Trump account
receiving contributions under a SEP
arrangement under section 408(k) or a
SIMPLE IRA plan under section 408(p)
and the separate application of section
408(d)(2) with respect to Trump accounts
and other individual retirement arrange-
ments, a Trump account does not automat-
ically cease to be a Trump account imme-
diately after the growth period.
However, see Q&A A-10 of this notice,
regarding a permissible provision in the
written governing instrument for an auto-
matic trustee-to-trustee transfer to a tra-
ditional IRA that is not a Trump account
after the growth period.
H. QUALIFIED GENERAL
CONTRIBUTIONS
Section 530A(f)(1) provides that a
“qualified general contribution” is any

December 22, 2025 866 Bulletin No. 2025–52
contribution that (A) is made by the Secre-
tary pursuant to a general funding contri-
bution, (B) is made to the Trump account
of an account beneficiary in the qualified
class of account beneficiaries specified in
the general funding contribution, and (C)
is in an amount equal to the ratio of the
amount of such general funding contribu-
tion to the number of account beneficia-
ries in such qualified class.
Section 530A(f)(2) provides that a
“general funding contribution” is a contri-
bution (A) made by (i) an entity described
in section 170(c)(1) (other than a posses-
sion of the United States or a political sub-
division thereof) or an Indian tribal gov-
ernment, or (ii) an organization described
in section 501(c)(3) and exempt from tax
under section 501(a), and (B) which spec-
ifies a qualified class of account benefi-
ciaries to whom such contribution is to be
distributed.
Section 530A(f)(3)(A) provides that a
“qualified class” means any of the follow-
ing three classes of account beneficiaries—
(1) All account beneficiaries who are in
the growth period when the contribu-
tion is made;
(2) All account beneficiaries who are in
the growth period when the contri-
bution is made and who live in one
or more states (including the District
of Columbia) or other qualified geo-
graphic area specified by the general
funding contribution; or
(3) All account beneficiaries who are in
the growth period when the contri-
bution is made and who were born in
one or more calendar years specified
by the general funding contribution.
Section 530A(f)(3)(B) provides that
a “qualified geographic area” means any
geographic area in which not less than
5,000 account beneficiaries reside and
which is designated by the Secretary as a
qualified geographic area.
Q. H-1: How will an account benefi-
ciary of a Trump account receive a qual-
ified general contribution?
A. H-1: A qualified general contribu-
tion is transferred by the Treasury Depart-
ment or its agent to the trustee of a Trump
account pursuant to a general funding
contribution. The Treasury Department
or its agent will identify all account ben-
eficiaries within the qualified class spec-
ified by the general funding contribution
and will distribute the qualified general
contribution to the Trump account of each
account beneficiary in the qualified class.
Q. H-2: How is a general funding con-
tribution made?
A. H-2: To make a general funding
contribution, an entity described in sec-
tion 530A(f)(2) (such as a state or section
501(c)(3) organization
6
) will make an
application to the Treasury Department
or its agent. This application will include
the total amount of the general funding
contribution, the qualified class, and, if
elected by the contributor, a consent to
disclose the identity of the contributor
to the trustee of the Trump account of
each account beneficiary in the qualified
class (which identity and amount would
then be reported to the account beneficia-
ries receiving the related qualified gen-
eral contribution, see Q&A F-2 of this
notice). For the calendar years 2026 and
2027, the application will require a min-
imum general funding contribution equal
to at least $25 per account beneficiary in
the qualified class. The Treasury Depart-
ment anticipates that this application
will be available at some time after July
4, 2026. The Treasury Department will
provide more information about how and
where to make this application before the
application process opens.
After receiving and processing the
general funding contribution, the Trea-
sury Department or its agent will make
the qualified general contribution to the
Trump account of each account benefi-
ciary in the qualified class specified in the
general funding contribution. Qualified
general contributions will be available to
be made on a quarterly basis, based on the
members of the qualified class as of the
beginning of the quarter.
To accommodate the operational roll-
out of the Trump accounts, the Treasury
Department and the IRS will not desig-
nate any qualified geographic area during
the initial phase. Thus, until the Treasury
Department and the IRS designate quali-
fied geographic areas, a qualified class can
consist only of:
(1) All account beneficiaries who are in
the growth period when the contribu-
tion is made;
(2) All account beneficiaries who are in
the growth period when the contri-
bution is made and who live in one
or more states (including the District
of Columbia) specified by the general
funding contribution; or
(3) All account beneficiaries who are in
the growth period when the contri-
bution is made and who were born in
one or more calendar years specified
by the general funding contribution.
Comments are requested regarding
what uniform factors and criteria the
Treasury Department and the IRS should
consider using in the future to designate
qualified geographic areas under section
530A(f)(3)(B).
Q. H-3: May a contributor of a general
funding contribution impose additional eli-
gibility criteria to any of the three qualified
classes listed in section 530A(f)(3)(A)?
A. H-3: No. The only permissible
qualified classes of account beneficiaries
eligible for a qualified general contribu-
tion are the three qualified classes listed
in section 530A(f)(3)(A). No additional
eligibility criteria may be imposed on the
qualified class.
I. SECTION 128 EMPLOYER
CONTRIBUTIONS
Section 128(a) provides that an amount
paid by an employer as a contribution to the
Trump account of an employee or of any
dependent of such employee pursuant to
a Trump account contribution program is
excludible from income of the employee.
Section 128(b) provides that the
amount excludible under subsection (a)
with respect to any employee shall not
exceed $2,500 (subject to cost-of-living
adjustments after 2027).
Section 128(c) provides that a “Trump
account contribution program” means a
separate written plan of an employer for
the exclusive benefit of its employees
to provide contributions to the Trump
6
The Treasury Department and the IRS have determined that an organization described in section 501(c)(3) furthers a section 501(c)(3) purpose by making a general funding contribution
described in section 530A(f)(2), including distributions from a donor advised fund.

Bulletin No. 2025–52 867 December 22, 2025
accounts of such employees or dependents
of such employees.
Q. I-1: How much can be excluded
from gross income of an employee for a
contribution by an employer pursuant to a
Trump account contribution program?
A. I-1: For a calendar year, up to
$2,500 (subject to cost-of-living adjust-
ments after 2027) may be excluded from
gross income of the employee under sec-
tion 128(b)(1) for a contribution made by
an employer pursuant to a Trump account
contribution program. This annual limit
is per employee and not per depen-
dent of the employee. For example, if
an employee has two or more children
that have Trump accounts, an employer
with a Trump account contribution pro-
gram may only contribute up to $2,500
in the aggregate for 2026 to those Trump
accounts.
Q. I-2: What information must an
employer provide a trustee of a Trump
account when making a section 128 con-
tribution?
A. I-2: When making a contribution
pursuant to a Trump account contribu-
tion program, an employer must affirma-
tively indicate to the trustee of the Trump
account that the contribution is a section
128 employer contribution excludible
from gross income of the employee. The
trustee of the Trump account may rely
on the information from the employer,
unless the trustee has knowledge to the
contrary.
Q. I-3: May a Trump account contribu-
tion program be offered via salary reduc-
tion under a section 125 cafeteria plan?
A. I-3: Yes, in most, but not all, cir-
cumstances. A Trump account contribu-
tion program may be offered via salary
reduction under a section 125 cafeteria
plan if the contribution is made to the
Trump account of the employee’s depen-
dent but not if the contribution is made
to the Trump account of the employee.
Although a Trump account contri-
bution program would be a qualified
benefit under section 125(f)(1), a con-
tribution under the Trump account con-
tribution program to a Trump account
of the employee would provide deferred
compensation under section 125(d)(2)
(A), because the employee would have
a vested right to compensation that may
be payable to that individual in a later
year. The Treasury Department and the
IRS intend to address rules related to the
coordination of Trump account contribu-
tion programs and section 125 cafeteria
plans in proposed regulations.
IV. REQUEST FOR COMMENTS
The Treasury Department and the IRS
request comments on the intended reg-
ulations regarding Trump accounts and
related sections of the Code, including
the issues addressed in section III of this
notice. In particular, the Treasury Depart-
ment and the IRS request comments in
response to the specific comment requests
regarding particular issues in Q&As A-1,
A-3, D-1, D-4, D-5, D-7, D-9, E-1, F-1,
F-4, and H-2.
Comments should be submitted in
writing on or before February 20, 2026,
and should include a reference to Notice
2025-68.
Comments may be submitted elec-
tronically via the Federal eRulemaking
Portal at www.regulations.gov (type “IRS
Notice 2025-68” in the search field on the
www.regulations.gov home page to find
this notice and submit comments). Alter-
natively, comments may be submitted by
mail to: Internal Revenue Service, Attn:
CC:PA:01:PR (Notice 2025-68), Room
5503, P.O. Box 7604, Ben Franklin Sta-
tion, Washington, D.C. 20044.
The Treasury Department and the IRS
will publish for public availability any
comment submitted electronically or on
paper to its public docket.
V. DRAFTING INFORMATION
The principal author of this notice is
the Office of Associate Chief Counsel
(Employee Benefits, Exempt Organiza-
tions, and Employment Taxes). For fur-
ther information regarding this notice,
please contact (202) 317-4148 (not a toll-
free number).
Transition Rule for Applying
Section 951(a)(2)(B)
Notice 2025-75
SECTION 1. PURPOSE
This notice announces that the Depart-
ment of the Treasury (Treasury Depart-
ment) and the Internal Revenue Service
(IRS) intend to issue proposed regulations
(the forthcoming proposed regulations)
regarding the transition rule for dividends
(the transition rule) in section 70354(c)(2)
of Public Law 119-21, 139 Stat. 72 (July
4, 2025), commonly known as the One,
Big, Beautiful Bill Act (OBBBA). The
transition rule modifies the application of
section 951(a)(2)(B) of the Internal Reve-
nue Code (Code) for certain taxable years
of foreign corporations beginning before
January 1, 2026.
SECTION 2. BACKGROUND
.01 Sections 951(a)(1)(A) and 951A(a)
before OBBBA
Sections 951(a)(1)(A) and 951A(a),
as in effect before amendments made by
the OBBBA,
1
require each United States
shareholder (within the meaning of sec-
tion 951(b) or section 953(c)(1)(A), if
applicable) (each shareholder, a U.S.
shareholder) of a controlled foreign cor-
poration (within the meaning of section
957 or section 953(c)(1)(B), if applica-
ble) (a CFC) to include amounts in gross
income based on certain income of the
CFC.
Under section 951(a)(1)(A), a U.S.
shareholder of a CFC must include in
gross income its pro rata share of the
CFC’s subpart F income (as defined in
section 952) if the U.S. shareholder owns
(within the meaning of section 958(a))
stock of the CFC on the last day of the
CFC’s taxable year on which it is a CFC
(the “last relevant day,” and such share-
holder, a “section 951(a) inclusion share-
holder”). Ownership of stock within the
meaning of section 958(a) means stock
owned directly and stock owned indirectly
1
Unless otherwise indicated, all references to sections 951 and 951A in this notice are to the versions of those provisions as in effect before the amendments made by the OBBBA.

December 22, 2025 868 Bulletin No. 2025–52
through foreign corporations and other
foreign entities (including certain domes-
tic entities to the extent treated as foreign
entities under §1.958-1(d)(1)).
2
A U.S. shareholder’s pro rata share of a
CFC’s subpart F income for a taxable year
of the CFC is calculated by first determin-
ing the amount described in section 951(a)
(2)(A). This amount, which is determined
based on the U.S. shareholder’s propor-
tionate share of a hypothetical distribution
by the CFC, represents subpart F income
(unreduced by distributions during the
taxable year) allocable to stock of the CFC
that the U.S. shareholder owns on the last
relevant day. See §1.951-1(b) and (e). This
amount is limited based on the portion of
the taxable year during which the foreign
corporation is a CFC. The amount deter-
mined under section 951(a)(2)(A) is then
reduced for certain distributions under
section 951(a)(2)(B), as described below
in section 2.02 of this notice, to arrive at
the U.S. shareholder’s pro rata share of the
CFC’s subpart F income.
Section 951A(a) requires a U.S.
shareholder of a CFC to include in gross
income its global intangible low-taxed
income (GILTI inclusion amount). See
§1.951A-1(b). A U.S. shareholder’s
GILTI inclusion amount is determined by
taking into account the U.S. shareholder’s
pro rata share of tested items (as defined
in §1.951A-1(f)(5)) of CFCs in which
the U.S. shareholder owns stock, such as
tested income, tested loss, and qualified
business asset investment. See §1.951A-
1(c). A U.S. shareholder’s pro rata shares
of a CFC’s tested items are determined
in the same manner as a U.S. sharehold-
er’s pro rata share of a CFC’s subpart F
income under section 951(a)(2), subject to
certain modifications. See section 951A(e)
(1) and §1.951A-1(d).
.02 Section 951(a)(2)(B) before
OBBBA
Section 951(a)(2)(B) addresses cases
in which stock of a CFC owned by a U.S.
shareholder on the last relevant day was
acquired by the U.S. shareholder during
the CFC’s taxable year. In these cases,
section 951(a)(2)(B) generally reduces the
U.S. shareholder’s pro rata share of the
CFC’s subpart F income or tested income,
by the amount of distributions received by
any other person during the taxable year
as a dividend with respect to the acquired
stock. For this purpose, section 951(a)(2)
(B) specifies that any gain included in the
gross income of any person as a dividend
under section 1248 is treated as a distribu-
tion received by such person with respect
to the stock involved.
The reduction under section 951(a)(2)
(B) cannot exceed the amount of the div-
idend that would have been received with
respect to the acquired stock if the CFC had
distributed an amount equal to its subpart
F income or tested income, as relevant, for
the taxable year multiplied by a fraction,
the numerator of which is the number of
days during the taxable year on which the
U.S. shareholder did not own the acquired
stock, and the denominator of which is the
number of days during the taxable year.
The reduction, as so limited, represents
an amount of distributed income of the
CFC that the U.S. shareholder otherwise
would include in gross income under sec-
tion 951(a)(1)(A) or 951A(a) by reason of
owning the acquired stock on the last rel-
evant day, but that is not allocable to the
period during which the U.S. shareholder
owned the acquired stock.
Further, under §1.1502-80(j), in deter-
mining the amount described in section
951(a)(2)(B) that is attributable to distri-
butions to which section 959(b) applies,
members of a consolidated group (as
defined in §1.1502-1(h)) are treated as a
single U.S. shareholder for purposes of
determining the part of the year during
which such shareholder did not own the
stock described in section 951(a)(2)(A).
.03 OBBBA Amendments and the
Transition Rule
Section 70354 of the OBBBA amends
sections 951(a) and 951A for taxable years
of foreign corporations beginning after
December 31, 2025. As amended, a U.S.
shareholder’s pro rata share of subpart F
income, and tested income and tested loss,
of a CFC is generally the portion of such
income attributable to the stock of such
CFC owned by such shareholder attrib-
utable to any period of the CFC’s taxable
year during which (i) the shareholder
owns such stock, (ii) the shareholder is a
U.S. shareholder of the corporation, and
(iii) the corporation is a CFC.
For certain taxable years before the
amendments to sections 951(a) and 951A
in the OBBBA take effect, a U.S. share-
holder must take into account the transition
rule in section 70354(c)(2) of the OBBBA
in determining its pro rata share of sub-
part F income and tested items. Under
the transition rule, certain dividends are
not treated as dividends for purposes of
applying section 951(a)(2)(B), except to
the extent provided by the Secretary.
Under section 70354(c)(2)(A) of the
OBBBA, a dividend is subject to the tran-
sition rule if the dividend is (i) paid or
deemed paid on or before June 28, 2025,
and during the taxable year of a CFC that
includes such date, provided the U.S.
shareholder described in section 951(a)
did not own (within the meaning of sec-
tion 958(a)) the stock of the CFC during
the portion of the taxable year on or before
June 28, 2025, or (ii) paid or deemed paid
after June 28, 2025, and before a foreign
corporation’s first taxable year beginning
after December 31, 2025. Under section
70354(c)(2)(B) of the OBBBA, any div-
idend subject to the transition rule
3
as
described in the preceding sentence is not
treated as a dividend for purposes of apply-
ing section 951(a)(2)(B) if the dividend
does not increase the taxable income of
a United States person subject to Federal
income tax for the taxable year (including
by reason of a dividends received deduc-
tion, an exclusion from gross income, or
an exclusion from subpart F income). The
transition rule thus limits the amount of a
U.S. shareholder’s reduction under section
951(a)(2)(B) when ownership of the stock
of the CFC is transferred to the U.S. share-
holder during the CFC’s taxable year and
the CFC paid or is deemed to have paid
a dividend that is subject to the transition
rule and the dividend does not increase the
taxable income of a United States person
subject to Federal income tax.
2
For purposes of this notice, a reference to stock ownership means stock owned within the meaning of section 958(a).
3
This notice refers to a dividend as “subject to the transition rule” if the dividend is described in section 70354(c)(2)(A) of the OBBBA. A dividend “subject to the transition rule” may,
however, increase the taxable income of a United States person subject to Federal income tax and therefore still be treated as a dividend for purposes of section 951(a)(2)(B).

Bulletin No. 2025–52 869 December 22, 2025
SECTION 3. PROPOSED
REGULATIONS TO BE ISSUED
.01 In General
The forthcoming proposed regulations
would provide the rules described in this
section 3.
.02 Meaning of Dividends Paid (or
Deemed Paid)
Any amount that is treated as a distri-
bution received by any other person as a
dividend under section 951(a)(2)(B), as
in effect before the amendments made by
the OBBBA, would be a dividend paid
(or deemed paid) for purposes of apply-
ing the transition rule.
4
Thus, for example,
any gain included in the gross income of
any person as a dividend under section
1248 would be treated as a dividend to
which the transition rule may apply. This
approach is intended to ensure symmetry
between “distributions received as a div-
idend” for purposes of section 951(a)(2)
(B) and “dividends paid” for purposes of
the transition rule.
.03 Increase in Taxable Income of a
United States Person Subject to Federal
Income Tax
(1) Meaning of United States Person
Subject to Federal Income Tax
For purposes of the transition rule and
regardless of whether the person has any
Federal income tax liability for any tax-
able year, a United States person subject
to Federal income tax would mean any
United States person as defined in sec-
tion 7701(a)(30) except for (i) a domes-
tic partnership, (ii) an S corporation (as
defined in section 1361), (iii) a domestic
grantor trust,
5
or (iv) a bona fide resident
(as defined in section 937(a)) of Guam,
the Commonwealth of the Northern Mar-
iana Islands, or the U.S. Virgin Islands. A
United States person subject to Federal
income tax would also include any non-
resident alien individual who elects to be
treated as a resident of the United States
under section 6013(g) or (h).
(2) Look-Through Rule for Partner-
ships and S Corporations
(a) In General
A look-through rule would apply with
respect to (i) dividends paid by a CFC and
received by a partnership (domestic or
foreign) or S corporation
6
and (ii) amounts
that are or would be includible in the
gross income of an S corporation under
section 951(a)(1)(A) or section 951A(a)
7

as a result of a dividend paid by a low-
er-tier CFC to an upper-tier CFC (apply-
ing the rules in section 3.03(3)(b) of this
notice). Under this rule, the determina-
tion of whether a dividend paid by a CFC
increases the taxable income of a United
States person subject to Federal income
tax is made at the level of the partner or
shareholder, as applicable (subject to the
rule for tiered structures in section 3.03(2)
(b) of this notice). Thus, for example, if
a partnership receives a dividend from a
CFC, the application of the transition rule
is determined by reference to each partner
that includes in gross income its distrib-
utive share of the dividend under section
702. This approach recognizes that a divi-
dend paid to a partnership or S corporation
by a CFC may be included in the distribu-
tive share or pro rata share of a partner or
shareholder that is a United States person,
as applicable, and thereby may increase
the taxable income of a United States per-
son subject to Federal income tax.
(b) Tiered Structures
If a dividend is paid by a CFC to a part-
nership, and a direct owner of the part-
nership is itself a partnership or an S cor-
poration, then, to the extent the dividend
would be allocated to that direct owner
under the look-through rule described in
section 3.03(2)(a) of this notice, the look-
through rule would again be applied at the
level of the direct owner. This approach is
further applied up the chain until the look-
through rule is no longer applicable.
(c) Publicly Held Domestic Partner-
ships
To the extent a dividend paid by a
CFC would be allocated under the look-
through rule described in section 3.03(2)
(a) of this notice to a de minimis owner
(as defined below) by reason of an inter-
est in a class of publicly held interests (as
defined below) in a domestic partnership,
the dividend would be treated as increas-
ing the taxable income of a United States
person subject to Federal income tax for
purposes of the transition rule. This rule
would not apply, however, if the domestic
partnership has actual knowledge of facts
that allow the partnership to determine
that the de minimis owner is not a United
States person subject to Federal income
tax or that the dividend paid by the CFC
does not increase the de minimis owner’s
taxable income.
A de minimis owner would be any per-
son that owns no more than 5 percent of a
class of publicly held interests in a domes-
tic partnership on any day of the taxable
year of the domestic partnership. For this
purpose, a person would be treated as
owning an interest in a class of publicly
held interests if the person owns the inter-
est directly or by applying the rules of
section 318(a) (except that section 318(a)
(2)(C) and (a)(3)(C) would be applied
by substituting “5 percent” for “50 per-
cent”). A class of publicly held interests
would be defined as any class of interests
in a domestic partnership that is regularly
traded on an established securities market
as defined in §1.7704-1(b), but without
regard to §1.7704-1(b)(3).
(3) Meaning of Does Not Increase Tax-
able Income
(a) Taxable Income
For purposes of the transition rule, “tax-
able income” would generally be defined
to mean “taxable income” as defined in
section 63. However, this definition would
be modified in the case of certain types of
entities subject to Federal income tax on
a basis other than taxable income under
section 63. Thus, for purposes of the tran-
4
For the remainder of this notice, a reference to dividends paid means “dividends paid (or deemed paid).”
5
The term “domestic grantor trust” for purposes of this notice means any trust that is a United States person described in section 7701(a)(30)(E) and that is treated as owned by a person under
sections 671 through 678. In the case of a dividend paid by a CFC to a grantor trust (domestic or foreign), the determination of whether the dividend increases the taxable income of a United
States person subject to Federal income tax is made at the level of the grantors or other persons treated as owners of the trust (or the relevant portion thereof). See section 671.
6
For purposes of sections 951 through 965, an S corporation is treated as a partnership, and the shareholders of the S corporation are treated as partners of such partnership. See section
1373(a).
7
An S corporation may have an inclusion under section 951(a)(1)(A) or 951A(a) if an election is made to treat the S corporation as owning stock of a CFC under section 958(a) for purposes
of applying sections 951 and 951A. See proposed §1.958-1(e), 87 FR 3890 (Jan. 25, 2022).

December 22, 2025 870 Bulletin No. 2025–52
sition rule, “taxable income” would mean
(i) investment company taxable income
(as defined in section 852(b)) in the case
of a regulated investment company (RIC)
that satisfies the requirements of section
852(a) for a relevant taxable year of the
RIC, (ii) real estate investment trust tax-
able income (as defined in section 857(b)
(2)) in the case of a real estate investment
trust (REIT) that satisfies the requirements
of section 857(a) for a relevant taxable
year of the REIT, and (iii) unrelated busi-
ness taxable income (as defined in section
512) (UBTI) for any organization that is
exempt from taxation by reason of section
501(a).
This approach would recognize that in
the case of RICs, REITs, and organiza-
tions exempt from taxation by reason of
section 501(a), investment company tax-
able income, real estate investment trust
taxable income, and UBTI, respectively,
are the categories of income that are gen-
erally subject to Federal income tax under
Chapter 1 and therefore appropriately
treated as taxable income for purposes of
the transition rule. See sections 851(b)(1),
857(b)(1), and 511(b)(1).
(b) Increase to Taxable Income
Whether a dividend results in an
increase to the taxable income of a United
States person subject to Federal income tax
for the taxable year would be determined
after the application of any exclusion that
results in the dividend not being included
in gross income or taxable income, or any
dividends received deduction that reduces
the amount of the dividend included in
taxable income. Thus, for example, a
dividend would not increase the taxable
income of a United States person sub-
ject to Federal income tax to the extent
(i) the dividend is excluded from gross
income under section 931 or 933, (ii) the
dividend qualifies for, or gives rise to, a
dividends received deduction under sec-
tion 245A, including by reason of section
1248(j) or 964(e)(4), or (iii) the dividend
is paid to a CFC and does not give rise to
subpart F income or tested income to the
CFC because the exclusion under section
959(b) or 954(c)(6) applies.
Further, the determination of the
amount by which a dividend paid by a CFC
increases the taxable income of a United
States person subject to Federal income
tax is made without regard to decreases to
taxable income resulting from generally
applicable deductions of the United States
person that are not particular to the receipt
of a dividend. A dividend may therefore
result in an increase to the taxable income
of a United States person subject to Fed-
eral income tax even if that income is off-
set by a deduction, such as a deduction for
depreciation under section 167, a net oper-
ating loss deduction under section 172, a
deduction for distributions under section
651 or 661, or a deduction for dividends
paid under section 852(b)(2)(D) or 857(b)
(2)(B).
In the case of a dividend paid by a low-
er-tier CFC to an upper-tier CFC, for pur-
poses of the transition rule, the dividend
would be treated as increasing the taxable
income of a United States person subject
to Federal income tax to the extent the div-
idend is taken into account in determin-
ing a U.S. shareholder’s inclusion under
section 951(a)(1)(A) or 951A(a). Specif-
ically, a dividend is treated as increasing
the taxable income of a United States per-
son subject to Federal income tax to the
extent the dividend would give rise to an
amount includible in gross income by a
U.S. shareholder under section 951(a)(1)
(A), determined without regard to prop-
erly allocable deductions of the upper-tier
CFC, the earnings and profits limitation
under section 952(c)(1)(A), qualified defi-
cits under section 952(c)(1)(B), or chain
deficits under section 952(c)(1)(C). Simi-
larly, a dividend paid by a lower-tier CFC
to an upper-tier CFC would be treated as
increasing the taxable income of a United
States person subject to Federal income
tax to the extent the dividend would give
rise to an amount includible in gross
income by a U.S. shareholder under sec-
tion 951A(a), determined without regard
to properly allocable deductions of the
upper-tier CFC, tested losses of any other
CFCs, and the net deemed tangible income
return (as defined in section 951A(b)(2))
of the U.S. shareholder. Notwithstanding
the phrase “determined without regard
to properly allocable deductions” in this
paragraph, any dividend paid to a CFC
that is excluded from the CFC’s subpart
F income or tested income under the high-
tax exception or the high-tax exclusion
(
see section 954(b)(4) and §1.951A-2(c)
(1)(iii)) would not be treated as increas-
ing the taxable income of a United States
person subject to Federal income tax for
purposes of applying the transition rule.
(c) Extent to Which a Dividend Does
Not Increase Taxable Income
To the extent a dividend subject to
the transition rule increases the taxable
income of a United States person subject
to Federal income tax by less than the full
amount of the dividend, the portion of the
dividend that does not increase the taxable
income of a United States person subject
to Federal income tax would not be treated
as a dividend for purposes of applying
section 951(a)(2)(B). Thus, for example,
if section 1059(a)(2) applies to require
the recognition of gain with respect to
the nontaxed portion of a dividend that
exceeds a domestic recipient corporation’s
basis in a share of stock of the foreign dis-
tributing corporation, and the dividend is
subject to the transition rule, the nontaxed
portion of the dividend that does not result
in gain would not be treated as a dividend
for purposes of applying section 951(a)(2)
(B).
Similarly, if a dividend is subject to the
transition rule, and only a portion of the
dividend increases the taxable income of
a United States person subject to Federal
income tax due to the application of the
look-through rule described in section
3.03(2) of this notice, the portion of the
dividend that does not increase the tax-
able income of a United States person
subject to Federal income tax would not
be treated as a dividend for purposes of
applying section 951(a)(2)(B). Further, in
cases in which a dividend is subject to the
transition rule and is paid by a lower-tier
CFC to an upper-tier CFC, the dividend
would not be treated as a dividend for pur-
poses of applying section 951(a)(2)(B) to
the extent the dividend is not taken into
account in determining the gross income
of a U.S. shareholder of the upper-tier
CFC under section 951(a) or 951A(a)
(applying the rules in section 3.03(3)(b)
of this notice). This could be the case,
for example, if neither section 954(c)(6)
nor 959(b) applies and such dividend is
included in the upper-tier CFC’s subpart
F income but a portion of the stock of the
upper-tier CFC is not owned by a section
951(a) inclusion shareholder.
Additionally, the determination of
whether a dividend increases taxable
income of a United States person subject

Bulletin No. 2025–52 871 December 22, 2025
to Federal income tax would be made on
a share-by-share basis. For example, if a
domestic corporation sells multiple shares
of stock of a CFC and the gain on each
of those shares is treated as a dividend
under section 1248(a) that is subject to
the transition rule, but the amount of gain
treated as a dividend with respect to cer-
tain of those shares does not qualify for
the deduction under section 245A because
the domestic corporation fails to meet the
holding period requirement described in
section 246(c)(1) and (5) with respect to
such shares, then the amount treated as a
dividend with respect to which the deduc-
tion under section 245A is allowed would
not be treated as a dividend for purpose of
section 951(a)(2)(B).
(d) Coordination with Other Rules
(i) In General
The determination of whether a divi-
dend paid by a CFC increases the taxable
income of a United States person subject
to Federal income tax for purposes of the
transition rule would be determined by
applying all applicable Code sections and
Treasury regulations before applying the
transition rule.
(ii) Section 245A and §1.245A-5
Consistent with the general rule
described in section 3.03(3)(d)(i) of this
notice, the determination of whether a
dividend increases the taxable income of
a United States person subject to Federal
income tax for purposes of the transition
rule would be made after applying sec-
tion 245A and §1.245A-5 without regard
to the transition rule. Thus, for example,
in determining a controlling section 245A
shareholder’s pre-reduction pro rata share
under the rules for extraordinary reduction
amounts in §1.245A-5(e), the forthcoming
proposed regulations would clarify that any
decrease for amounts taken into account
by a U.S. tax resident under §1.245A-5(e)
(2)(ii)(B) is determined before the transi-
tion rule could apply to limit the amount
of the reduction under section 951(a)(2)
(B). Furthermore, because an extraordi-
nary reduction amount or tiered extraor-
dinary reduction amount is determined
without regard to the transition rule, the
forthcoming proposed regulations would
clarify that the election to close a CFC’s
taxable year described in §1.245A-5(e)(3)
(i)(A) remains available to a controlling
section 245A shareholder that disposes of
stock in a CFC provided the other condi-
tions in §1.245A-5(e)(3)(i)(A) are met.
(4) Establishing a Dividend Increases
Taxable Income
A section 951(a) inclusion shareholder
that reduces its pro rata share of subpart
F income or tested income under section
951(a)(2)(B), as a result of a dividend
subject to the transition rule, must deter-
mine and document that the dividend
increased the taxable income of a United
States person subject to Federal income
tax. The section 951(a) inclusion share-
holder would be required to attach a state-
ment to Form 5471, Information Return
of U.S. Persons With Respect To Certain
Foreign Corporations (or successor), that
(i) provides the amount of each dividend
paid by the CFC (with respect to the stock
owned by the section 951(a) inclusion
shareholder filing the return) that is sub-
ject to the transition rule but treated as a
dividend for purposes of applying sec-
tion 951(a)(2)(B), and (ii) describes why
the section 951(a) inclusion shareholder
filing the return is entitled to treat each
such amount as a dividend for purposes
of section 951(a)(2)(B) after application
of the transition rule. The statement would
be required to describe how the section
951(a) inclusion shareholder determined
that each amount described in the prior
sentence increased the taxable income of
a United States person subject to Federal
income tax, applying the rules described
in section 3 of this notice.
.04 Ownership of Stock of a CFC on or
Before June 28, 2025
As described in section 2.03 of this
notice, a dividend is not subject to the
transition rule if (1) it is paid on or before
June 28, 2025, and during the taxable year
of a CFC that includes that date, and (2)
the section 951(a) inclusion shareholder
owned the stock of the CFC during the
portion of such taxable year on or before
June 28, 2025. The forthcoming pro-
posed regulations would provide that, for
this purpose, the reference to “the stock”
means the specific shares of stock of the
CFC with respect to which a dividend was
paid, and for which the section 951(a)
inclusion shareholder would otherwise
reduce its pro rata share under section
951(a)(2)(B) absent the application of
the transition rule. Accordingly, if a U.S.
shareholder acquires shares of stock in a
CFC after June 28, 2025, dividends paid
with respect to those shares on or before
June 28, 2025, and during the taxable year
of the CFC that includes such date, are
subject to the transition rule even if the
U.S. shareholder owned other shares in
the CFC on or before June 28, 2025.
SECTION 4. APPLICABILITY DATE
AND RELIANCE
The forthcoming proposed regulations
would apply to the taxable years of a CFC
that either (i) include June 28, 2025, or (ii)
begin after June 28, 2025, but before such
CFC’s first taxable year beginning after
December 31, 2025. A taxpayer may rely
on the rules described in section 3 of this
notice for dividends paid before the forth-
coming proposed regulations are pub-
lished in the Federal Register, provided
the taxpayer and its related parties (within
the meaning of sections 267(b) and 707(b)
(1)) follow the rules in their entirety and in
a consistent manner for all dividends paid
before the forthcoming proposed regula-
tions are published.
SECTION 5. PAPERWORK
REDUCTION ACT
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501-3520) (PRA) generally
requires that a federal agency obtain the
approval of the Office of Management and
Budget (OMB) before collecting infor-
mation from the public, whether such
collection of information is mandatory,
voluntary, or required to obtain or retain
a benefit. An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a valid control number
assigned by the OMB.
The collection of information in this
notice contains reporting and record-
keeping requirements that are required to
enable the IRS to verify that a taxpayer is
reporting the correct amount of taxable
income. The collection of information
will be used by the IRS for tax compli-
ance purposes. The likely respondents are
business and other for profit institutions.
This notice includes a reporting
requirement to provide the IRS with a
statement describing why the United
States person filing the return is entitled

December 22, 2025 872 Bulletin No. 2025–52
to treat certain dividend amounts as a
dividend for purposes of section 951(a)
(2)(B) as described in section 3.03(4).
The statement must describe how the
United States person determined that the
dividend increased the taxable income of
a United States person subject to Federal
income tax, applying the rules described
in section 3 of this notice. This report-
ing requirement to attach a statement to
Form 5471 will be included within OMB
Control Numbers 1545-0123 for business
filers, 1545-0074 for individual filers,
1545-0092 for trust and estate filers, and
1545-0047 for tax exempt filers in accor-
dance with the PRA procedures under 5
CFR 1320.10.
The recordkeeping requirements
include that taxpayers keep books of
account and records that are adequate to
permit verification that the reduction in
the taxpayer’s pro rata share under section
951(a)(2)(B) was appropriate and that the
taxpayer is reporting the correct amount
of taxable income. This recordkeeping
requirement will be included within OMB
Control Numbers 1545-0123 for business
filers, 1545-0074 for individual filers,
1545-0092 for trust and estate filers, and
1545-0047 for tax exempt filers in accor-
dance with the PRA procedures under 5
CFR 1320.10.
SECTION 6. REQUEST FOR
COMMENTS AND CONTACT
INFORMATION
The Treasury Department and the
IRS welcome comments on the rules
described in this notice. Comments
should be submitted by February 2,
2026. Comments may be submitted elec-
tronically via the Federal eRulemaking
Portal at https://www.regulations.gov
(type IRS-2025-0367 in the search field
on the regulations.gov homepage to find
this notice and submit comments). Writ-
ten comments may be mailed to Internal
Revenue Service, CC:PA:01:PR (Notice
2025-75), Room 5503, P.O. Box 7604,
Ben Franklin Station, Washington, D.C.,
20044. All commenters are strongly
encouraged to submit comments elec-
tronically.
The Treasury Department and the IRS
will publish for public availability any
comment submitted electronically and on
paper to its public docket on regulations.
gov.
The principal author of this notice is
James R. Kostura of the Office of Associ-
ate Chief Counsel (International). How-
ever, other personnel from the Treasury
Department and the IRS participated in
its development. For further informa-
tion regarding this notice, contact Mr.
Kostura at (202) 317-6934 (not a toll-
free call).
Effective Date and
Application of Section
960(d)(4)
Notice 2025-77
SECTION 1. PURPOSE
This notice announces that the Depart-
ment of the Treasury (Treasury Depart-
ment) and the Internal Revenue Service
(IRS) intend to issue proposed regulations
regarding section 960(d)(4), which disal-
lows a foreign tax credit for 10 percent of
any foreign income taxes paid or accrued
(or deemed paid under section 960(b)
(1)) with respect to any amount excluded
from gross income under section 959(a)
by reason of an inclusion in gross income
under section 951A(a) (the forthcoming
proposed regulations). Section 960(d)(4)
was added to the Internal Revenue Code
(Code) by section 70312(b) of Public Law
119-21, 139 Stat. 72 (July 4, 2025), com-
monly known as the One, Big, Beautiful
Bill Act (OBBBA). Section 70312(c)(2) of
the OBBBA provides that section 960(d)
(4) applies to foreign income taxes paid
or accrued (or deemed paid under section
960(b)(1)) with respect to any amount
excluded from gross income under section
959(a) by reason of an inclusion in gross
income under section 951A(a) after June
28, 2025.
SECTION 2. BACKGROUND
Section 901(a) generally provides that
a taxpayer choosing to credit foreign
income taxes is allowed a credit for cer-
tain foreign income taxes paid or accrued
by the taxpayer plus, in the case of a
domestic corporation, the taxes deemed
to have been paid by the domestic corpo-
ration under section 960. Section 960(d)
provides that, if any amount is includi-
ble in the gross income of a domestic
corporation under section 951A (section
951A inclusion), the domestic corpo-
ration is deemed to have paid foreign
income taxes with respect to the section
951A inclusion. Section 960(b)(1) pro-
vides that a United States shareholder of
a controlled foreign corporation (within
the meaning of section 957(a)) (CFC) is
deemed to have paid the CFC’s foreign
income taxes that the United States share-
holder has not been previously deemed
to pay and that are properly attributable
to a distribution from the CFC that the
United States shareholder excludes from
its income under section 959(a) (a sec-
tion 959(a) distribution).
Prior to the OBBBA, section 960(d)(1)
provided that a domestic corporation that
is a United States shareholder is deemed to
have paid 80 percent of the amount equal
to the product of the United States share-
holder’s inclusion percentage (the ratio of
its section 951A inclusion to its aggregate
pro rata share of the tested income of its
CFCs) and the aggregate of the tested
foreign income taxes paid or accrued by
its CFCs. Thus, section 960(d)(1) (prior
to the OBBBA) effectively reduced the
amount of foreign income taxes deemed
paid with respect to a section 951A inclu-
sion by 20 percent. The OBBBA changed
the section 960(d)(1) reduction from 20
percent to 10 percent.
Section 960(d)(4), as enacted by the
OBBBA, correspondingly disallows a
credit for 10 percent of the foreign income
taxes paid or accrued with respect to a dis-
tribution of the previously taxed earnings
and profits (PTEP) resulting from a sec-
tion 951A inclusion. Specifically, section
960(d)(4) disallows a foreign tax credit
for 10 percent of any foreign income
taxes paid or accrued (or deemed paid
under section 960(b)(1)) with respect to
any amount excluded from gross income
under section 959(a) by reason of a sec-
tion 951A inclusion.
Section 959(a) generally excludes
a CFC’s earnings and profits from the
gross income of a United States share-
holder when distributed to the extent
the United States shareholder has

Bulletin No. 2025–52 873 December 22, 2025
already included the amounts in gross
income under certain provisions of the
Code, including section 951A(a). For
purposes of determining the amount
of foreign income taxes deemed paid
under section 960(b)(1) with respect to
a section 959(a) distribution, §1.960-3
requires the establishment and main-
tenance of accounts that track a for-
eign corporation’s PTEP and foreign
income taxes attributable to the PTEP.
As relevant for purposes of this notice,
§1.960-3 requires PTEP within an
annual PTEP account (as defined in
§1.960-3(c)(1)) to be assigned to one
or more of the ten PTEP groups that
are defined and set forth in §1.960-3(c)
(2). Proposed amendments to the reg-
ulations under sections 959 and 960,
including proposed amendments to
§1.960-3, were published in the Federal
Register on December 2, 2024 (89 FR
95362) (the 2024 proposed PTEP reg-
ulations).
SECTION 3. REGULATIONS TO BE
ISSUED
.01 Application of Section 960(d)(4)
(1) In General. The forthcoming pro-
posed regulations would include the guid-
ance provided in this section 3.01. The
Treasury Department and the IRS also
intend to modify the 2024 proposed PTEP
regulations to be consistent with the guid-
ance provided in this section 3.01.
(2) Effective Date of Section 960(d)
(4). The Treasury Department and the
IRS understand that questions have arisen
regarding the effective date of section
960(d)(4) provided in section 70312(c)(2)
of the OBBBA. Section 960(d)(4) applies
to the foreign income taxes paid or accrued
(or deemed paid under section 960(b)(1))
with respect to a section 959(a) distribu-
tion to the extent the PTEP results from a
section 951A inclusion of a United States
shareholder in a taxable year ending after
June 28, 2025. The relevant taxable year
is that of the United States shareholder,
and therefore the section 951A inclusion
may include tested income of a CFC from
a taxable year of the CFC that ends on or
before June 28, 2025 (for instance, the
section 951A inclusion for a United States
shareholder’s taxable year ending Decem-
ber 31, 2025, may include tested income
from a CFC’s taxable year ending May 31,
2025).
If a United States shareholder has a
section 951A inclusion in a taxable year
ending on or before June 28, 2025, then
section 960(d)(4) will not apply to foreign
income taxes paid or accrued (or deemed
paid under section 960(b)(1)) with respect
to any amount that is excluded from gross
income under section 959(a) by reason
of that inclusion, even if those foreign
income taxes are paid or accrued (or
deemed paid under section 960(b)(1))
after June 28, 2025.
(3) Section 951A PTEP Group. The
“section 951A PTEP” group set forth in
§1.960-3(c)(2)(viii) will be divided into
two groups: (1) PTEP resulting from sec-
tion 951A inclusions in a taxable year of
a United States shareholder ending on or
before June 28, 2025 (pre-06/29/25 sec-
tion 951A PTEP), and (2) PTEP resulting
from section 951A inclusions in a taxable
year of a United States shareholder ending
after June 28, 2025 (post-06/28/25 section
951A PTEP).
(4) Foreign Income Taxes With Respect
to Distributions of Post-06/28/25 Section
951A PTEP. No credit is allowed under
section 901 for 10 percent of any foreign
income taxes paid or accrued (or deemed
paid under section 960(b)(1)) with respect
to a section 959(a) distribution of post-
06/28/25 section 951A PTEP. The foreign
income taxes with respect to a section
959(a) distribution of post-06/28/25 sec-
tion 951A PTEP are those taxes that are
allocated and apportioned to the post-
06/28/25 section 951A PTEP group under
§1.861-20.
(5) Reclassified Section 951A PTEP.
Rules similar to the rules set forth in sec-
tions 3.01(3) and 3.01(4) of this notice
will apply to the “reclassified section
951A PTEP” group set forth in §1.960-
3(c)(2)(iv).
.02 Example
The following example illustrates the
application of section 3.01 of this notice.
Example—(i) Facts. USP, a domestic corpora-
tion, owns all the stock of a single foreign corpo-
ration (FC). FC, a Country X entity that is a CFC,
has the U.S. dollar as its functional currency. Both
FC and USP use the calendar year as their taxable
year. FC does not have any accumulated earnings
and profits as of the beginning of its 2024 taxable
year. FC earns tested income of $100x for each
of its 2024 and 2025 taxable years, and USP has
a section 951A inclusion of $100x in each of its
2024 and 2025 taxable years. FC has no income
or loss in any of its subsequent taxable years. On
January 1, 2026, FC makes a distribution of $150x
to USP, which is treated as a distribution of prop-
erty for both Country X law and Federal income
tax purposes. Country X imposes a withholding
tax (as defined in section 901(k)(1)(B)) of $30x
with respect to the distribution. For its 2026 tax-
able year, USP claims the foreign tax credit under
section 901.
(ii)
Analysis—(A) FC has earnings and profits of
$100x within the annual PTEP account in the section
951A category for its 2024 taxable year. Under sec-
tion 3.01(3) of this notice, the $100x of PTEP, which
results from a section 951A inclusion of USP in a
taxable year of USP ending on or before June 28,
2025, constitutes pre-06/29/25 section 951A PTEP.
FC has earnings and profits of $100x within the
annual PTEP account in the section 951A category
for its 2025 taxable year. Under section 3.01(3) of
this notice, the $100x of PTEP, which results from
a section 951A inclusion of USP in a taxable year
of USP ending after June 28, 2025, constitutes post-
06/28/25 section 951A PTEP, regardless of whether
FC earned the related tested income before, on, or
after June 28, 2025.
(B) Under section 959(c) and §1.959-3(b), FC’s
$150x distribution on January 1, 2026, constitutes
a distribution of $100x of FC’s PTEP for its 2025
taxable year, and $50x of FC’s PTEP for its 2024
taxable year. Under section 3.01(4) of this notice and
§1.861-20(d)(3)(i)(B), $100x of the foreign gross
income related to the $150x distribution is assigned
to the post-06/28/25 section 951A PTEP group, and
$50x is assigned to the pre-06/29/25 section 951A
PTEP group. Under section 3.01(4) of this notice and
§1.861-20(f), $20x of the $30x of Country X with-
holding tax ($30x × $100x/$150x) is allocated and
apportioned to the post-06/28/25 section 951A PTEP
group, and the remaining $10x ($30x × $50x/$150x)
is allocated and apportioned to the pre-06/29/25 sec-
tion 951A PTEP group.
(C) Under section 960(d)(4) and section
3.01(4) of this notice, $2x (that is, 10%) of the
$20x of foreign tax credits otherwise allowable
under section 901 with respect to the $20x of
Country X withholding tax allocated and appor-
tioned to the post-06/28/25 section 951A PTEP
group is disallowed.
SECTION 4. APPLICABILITY DATE
AND RELIANCE
The forthcoming proposed regulations
would apply to foreign income taxes paid
or accrued (or deemed paid under section
960(b)(1)) with respect to any amount
excluded from gross income under sec-
tion 959(a) by reason of an inclusion in
the gross income of a United States share-
holder under section 951A(a), provided
that the inclusion is in a taxable year of
the United States shareholder ending after

December 22, 2025 874 Bulletin No. 2025–52
June 28, 2025. Taxpayers may rely on
the guidance provided in section 3 of this
notice for taxable years of United States
shareholders beginning before the date the
proposed regulations are published in the
Federal Register, provided taxpayers fol-
low the guidance in its entirety and in a
consistent manner for all applicable tax-
able years.
SECTION 5. DRAFTING AND
CONTACT INFORMATION
The principal author of this notice is
Le Chen of the Office of Associate Chief
Counsel (International). However, other
personnel from the Treasury Department
and the IRS participated in its develop-
ment. For further information regarding
this notice, contact Mr. Chen at (202) 317-
6936 (not a toll-free call).
Application of Section
250(b)(3)(A)(i)(VII) to Sales
or Other Dispositions of
Property
Notice 2025-78
SECTION 1. PURPOSE
This notice announces that the Depart-
ment of the Treasury (Treasury Depart-
ment) and the Internal Revenue Service
(IRS) intend to issue proposed regulations
(the forthcoming proposed regulations)
addressing the scope of section 250(b)
(3) of the Internal Revenue Code (Code),
which generally excludes any income and
gain from the sale or other disposition
of certain property described in section
250(b)(3)(A)(i)(VII) from the determina-
tion of deduction eligible income (DEI).
Section 250(b)(3)(A)(i)(VII) was added to
the Code by section 70322(a)(1) of Public
Law 119-21, 139 Stat. 72 (July 4, 2025),
commonly known as the One, Big, Beau-
tiful Bill Act (OBBBA). Section 70322(a)
(3) provides that section 250(b)(3)(A)
(i)(VII) and the conforming amendment
in section 70322(a)(2) apply to sales or
other dispositions occurring after June 16,
2025.
1
SECTION 2. BACKGROUND
Section 250(a)(1) allows a domestic
corporation to deduct an amount equal
to a percentage of the corporation’s for-
eign-derived deduction eligible income
(FDDEI). Section 250(b)(1) generally
provides that FDDEI is the domestic
corporation’s DEI derived in connection
with (i) property sold to any person who
is not a United States person and is for a
foreign use, or (ii) services provided to
any person, or with respect to property,
not located within the United States. Sec-
tion 250(b)(3)(A), as in effect prior to the
OBBBA, defined DEI as the excess (if
any) of a domestic corporation’s gross
income determined without regard to six
categories of gross income described in
sections 250(b)(3)(A)(i)(I) through (VI),
over the deductions (including taxes)
properly allocable to such gross income.
Section 250(b)(5)(E), as in effect prior
to the OBBBA, provided that the terms
“sold,” “sells,” and “sale” shall include
any lease, license, exchange, or other dis-
position for purposes of section 250(b).
Section 70322(a)(1) of the OBBBA
amended section 250(b)(3)(A)(i) to add a
new category of income in section 250(b)
(3)(A)(i)(VII) that is also excluded from
the determination of DEI. Specifically,
section 250(b)(3)(A)(i)(VII)(aa) and (bb)
exclude from gross income in determining
DEI, except as otherwise provided by the
Secretary,
2
any income and gain derived
from the sale or other disposition (includ-
ing pursuant to the deemed sale or other
deemed disposition or a transaction sub-
ject to section 367(d)) of intangible prop-
erty (as defined in section 367(d)(4)), and
any other property of a type that is subject
to depreciation, amortization, or deple-
tion by the seller, respectively. Addition-
ally, section 70322(a)(2) of the OBBBA
amended section 250(b)(5)(E)
3
(defining
the terms “sold,” “sells,” and “sale”) to
provide that section 250(b)(5)(E) does
not apply for purposes of the new cate-
gory of gross income excluded from the
determination of DEI in section 250(b)(3)
(A)(i)(VII). Section 70322(a)(3) provides
that section 250(b)(3)(A)(i)(VII) and the
conforming amendment to section 250(b)
(2)(E) apply to sales or other dispositions
(including pursuant to deemed sales or
other deemed dispositions or a transaction
subject to section 367(d)) occurring after
June 16, 2025.
SECTION 3. REGULATIONS TO BE
ISSUED
.01 Scope of Section 250(b)(3)(A)(i)
(VII)
(1) In General. The forthcoming pro
-
posed regulations would address the scope
of section 250(b)(3)(A)(i)(VII) as pro-
vided in this section 3.01.
(2) Sale or other disposition. A sale or
other disposition of intangible property or
other excluded property (as defined in sec-
tions 3.01(3) and (4) of this notice) means
a sale or other disposition as determined
under general tax principles, including
deemed sales, other deemed dispositions,
and transactions subject to section 367(d).
A deemed sale or other deemed disposi-
tion includes any transaction or election
that is treated as a sale or other disposition
of property for Federal income tax pur-
poses. A sale or other disposition does not
include a transaction that would be char-
acterized under general tax principles as a
lease or license.
(3) Intangible property. Intangible
property means intangible property as
defined in section 367(d)(4). For purposes
of section 250(b)(3)(A)(i)(VII)(aa), intan-
gible property does not include a copy-
righted article as defined in §1.861-18(c)
(3).
1
The OBBBA also amended other provisions of section 250 that apply to taxable years beginning after December 31, 2025. Unless otherwise indicated, references to section 250 in this notice
are with respect to section 250, as amended by the OBBBA.
2
The Secretary also has general regulatory authority to prescribe such regulations or other guidance as may be necessary or appropriate to carry out the provisions of section 250. See section
250(c).
3
Section 250(b)(5)(E) was redesignated section 250(b)(2)(E) by section 70323(b)(2)(B) of the OBBBA for years beginning after December 31, 2025.

Bulletin No. 2025–52 875 December 22, 2025
(4) Other excluded property. Other
property of a type that is subject to depre-
ciation, amortization, or depletion by the
seller (other excluded property) means
property that is not intangible property
within the meaning of section 3.01(3) of
this notice and that, in the hands of the
seller:
(a) Is or has been treated as property
which is of a character subject to the
allowance for depreciation under section
167;
(b) Is or has been subject to an allow-
ance for amortization that is not described
in paragraph (a); or
(c) Is or has been subject to the allow-
ance for depletion under section 611.
(5) Seller. Seller means the domestic
corporation that sells or otherwise dis-
poses of the intangible property or other
excluded property.
(6) Related-party anti-abuse rule.
Property that was other excluded property
in the hands of a member of the seller’s
modified affiliated group that the seller
acquires (1) in a transaction (or series of
transactions) in which the basis of the
property is determined, in whole or in part,
by reference to the basis in the hands of
the member in whose hands the property
was other excluded property, and (2) with
a principal purpose of avoiding the appli-
cation of section 250(b)(3)(A)(i)(VII)(bb),
is treated as other excluded property with
respect to the seller. Solely for purposes
of this section 3.01(6), the term modified
affiliated group has the meaning given
in §1.250(b)-1(c)(17) but without the sub-
stitution of “more than 50 percent” for “at
least 80 percent” each place it appears,
and by substituting “at least 80 percent”
for “more than 50 percent” for purposes of
determining control within the meaning of
section 954(d)(3).
.02 Examples
The following examples illustrate the
application of section 3.01 of this notice.
(1) Example 1—Sale of intangible property.
(a) Facts. DC, a domestic corporation, owns
the copyright to a computer program, Program X.
DC enters into an agreement with FP, an unrelated
foreign person, under which DC grants FP an exclu-
sive irrevocable license for the remaining term of
the copyright, to copy and distribute an unlimited
number of copies of Program X, prepare derivative
works based upon Program X, make public perfor-
mances of Program X, and publicly display Pro-
gram X. FP will pay DC a royalty each year equal
to y percent of net revenue derived from exploiting
Program X during the year, for the remaining term
of the copyright. Under general tax principles, DC
is treated as having sold the copyright to Program
X, notwithstanding that the agreement is labeled a
license.
(b) Analysis. The copyright to Program X is intan-
gible property within the meaning of section 3.01(3)
of this notice. Because DC has sold intangible prop-
erty (the copyright) under general tax principles, any
income and gain resulting from the sale is excluded
from the determination of DC’s DEI, pursuant to
section 250(b)(3)(A)(i)(VII)(aa). If, under different
facts, the grant of rights under the license agreement
were treated as a license under general tax principles,
section 250(b)(3)(A)(i)(VII)(aa) would not apply to
exclude any income and gain from the license from
the determination of DC’s DEI. See section 250(b)
(2)(E) (excluding from its application section 250(b)
(3)(A)(i)(VII)) and section 3.01(2) of this notice.
(2) Example 2—Sale of fully depreciated prop-
erty.
(a) Facts. DC, a domestic corporation, holds a
machine for use in its trade or business. The machine
has an adjusted depreciable basis of zero because it
has been fully depreciated. During the taxable year,
DC sells the machine to FP, an unrelated foreign per-
son.
(b) Analysis. In the hands of DC, the machine is
treated as property which is of a character subject
to the allowance for depreciation under section 167.
Therefore, the machine constitutes other excluded
property and income and gain from DC’s sale of the
machine to FP is excluded from the determination of
DC’s DEI pursuant to section 250(b)(3)(A)(i)(VII)
(bb). If, under different facts, DC acquired the fully
depreciated machine in a non-recognition transac-
tion for use in DC’s trade or business, a similar result
obtains because the machine is property which is of
a character subject to the allowance for depreciation
under section 167 in the hands of DC. Therefore, any
income and gain from DC’s sale of the machine to FP
would similarly be excluded from the determination
of DC’s DEI.
(3) Example 3—Sales of inventory and other
excluded property used in a trade or business.
(a) Facts. DC, a domestic corporation, owns 100
airplanes. DC owns five airplanes held for use in
DC’s trade or business that are of a character sub-
ject to the allowance for depreciation provided in
section 167. DC holds the remaining 95 airplanes in
inventory. During the taxable year, DC sells to FP,
an unrelated foreign person, two airplanes that DC
uses in its trade or business and 35 airplanes that DC
holds in inventory.
(b) Analysis. DC’s sale of the two airplanes is
a sale of other excluded property because the two
airplanes are of a character subject to the allowance
for depreciation under section 167. Therefore, any
income and gain from this sale is excluded from
the determination of DC’s DEI pursuant to section
250(b)(3)(A)(i)(VII)(bb). DC’s sale of the 35 air-
planes to FP is not a sale or other disposition of other
excluded property because the 35 airplanes are held
as inventory, and are not of a character that is subject
to the allowance for depreciation provided in section
167. Consequently, income and gain derived from
the sale of the 35 airplanes is not excluded from the
determination of DEI under section 250(b)(3)(A)(i)
(VII).
(4) Example 4—Sales involving members of a
consolidated group.
(a) Facts. P is the common parent of a consoli-
dated group (as defined in §1.1502-1(h)). P owns all
of the only class of stock of subsidiaries DC1 and
DC2, which are members (as defined in §1.1502-
1(b)) of the P consolidated group. DC1 owns ten
airplanes that are of a character subject to the allow-
ance for depreciation provided in section 167. In
Year A, DC1 sells all ten airplanes to DC2, recog
-
nizing $100x of gain. DC2 holds these airplanes in
inventory. In Year B, DC2 sells all ten airplanes to an
unrelated foreign person, recognizing $85x of gain.
(b) Analysis. The treatment of DC1’s and DC2’s
gain on their respective sales is subject to redetermi-
nation under §1.1502-13(c) to the extent necessary
to achieve single entity treatment for the group. See
§1.1502-13(a). If DC1 and DC2 were divisions of
a single corporation, the ten airplanes would be, or
would have been, of a character subject to the allow-
ance for depreciation under section 167. See section
3.01(4)(a) of this notice. Therefore, to achieve sin-
gle entity treatment, both DC1’s $100x of gain and
DC2’s $85x of gain are treated in Year B as gain from
the sale of other excluded property and are excluded
from the determination of DEI.
(5) Example 5—Related-party anti-abuse rule.
(a) Facts. DC1 is a domestic corporation and
owns an 80 percent interest in the profits and capital
of a domestic partnership, PRS. Unrelated persons
own the remaining interests in PRS. PRS owns all
of the only class of stock of DC2, a domestic cor-
poration. DC1 owns 20 cars that are other excluded
property in the hands of DC1. With a principal pur-
pose of avoiding the application of section 250(b)(3)
(A)(i)(VII)(bb), DC1 transfers all 20 cars to PRS in
an exchange described in section 721(a), and PRS
transfers all 20 cars to DC2 in an exchange described
in section 351(a). Under section 723, PRS’s basis in
the cars transferred to it by DC1 is the same as DC1’s
basis in the cars at the time of the transfer. Under
section 362, DC2’s basis in the cars transferred to
it by PRS is the same as the basis of the cars in the
hands of PRS. DC2 holds the cars in inventory and
recognizes gain on the subsequent sale of all 20 cars
to an unrelated foreign person.
(b) Analysis. DC1, PRS, and DC2 are members
of a modified affiliated group for purposes of sec-
tion 3.01(6). Because DC2 acquired property that
was other excluded property in the hands of DC1, a
member of DC2’s modified affiliated group for pur-
poses of section 3.01(6), in a series of transactions in
which the basis of the property was determined by
reference to the basis in the hands of the transferor
with a principal purpose of avoiding the application
of section 250(b)(3)(A)(i)(VII)(bb), the 20 cars are
treated as other excluded property in the hands of
DC2. Therefore, DC2’s gain is gain from the sale
of other excluded property and is excluded from the
determination of DEI pursuant to section 250(b)(3)
(A)(i)(VII)(bb).

December 22, 2025 876 Bulletin No. 2025–52
SECTION 4. APPLICABILITY DATE
AND RELIANCE
The forthcoming proposed regulations
would apply, when finalized, to sales or
other dispositions (including pursuant to
deemed sales, deemed dispositions, or
transactions subject to section 367(d))
occurring after June 16, 2025. A taxpayer
may rely on the rules described in section
3 of this notice for sales or other dispo-
sitions occurring before the forthcoming
proposed regulations are published in the
Federal Register, provided the taxpayer
applies the rules in their entirety and in a
consistent manner for all applicable tax-
able years.
SECTION 5. REQUEST FOR
COMMENTS
The Treasury Department and the IRS
request comments on the rules discussed
in this notice. Comments should be sub-
mitted by February 2, 2026. Comments
may be submitted electronically via the
Federal eRulemaking Portal at https://
www.regulations.gov (type IRS-2025-
0268 in the search field on the regulations.
gov homepage to find this notice and sub-
mit comments). Written comments may
be mailed to Internal Revenue Service,
CC:PA:01:PR (Notice 2025-78), Room
5503, P.O. Box 7604, Ben Franklin Sta-
tion, Washington, D.C., 20044. All com-
menters are strongly encouraged to submit
comments electronically.
SECTION 6. DRAFTING AND
CONTACT INFORMATION
The principal authors of this notice are
Stefan A. Pruessmann and Michelle L. Ng
of the Office of Associate Chief Counsel
(International). For further information
regarding this notice contact Mr. Pruess-
mann or Ms. Ng at (202) 317-6939 (not a
toll-free call).

Bulletin No. 2025–52 i December 22, 2025
Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is used in rare situations
to show that the previous published rul-
ings will not be applied pending some
future action such as the issuance of new
or amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current
use and formerly used will appear in
material published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.
—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

December 22, 2025 ii Bulletin No. 2025–52
Numerical Finding List
1
Bulletin 2025–52
Announcements:
2025-19, 2025-29 I.R.B. 191
2025-20, 2025-31 I.R.B. 271
2025-21, 2025-32 I.R.B. 312
2025-24, 2025-36 I.R.B. 359
2025-25, 2025-36 I.R.B. 360
2025-26, 2025-40 I.R.B. 444
2025-22, 2025-50 I.R.B. 783
2025-23, 2025-50 I.R.B. 784
2025-29, 2025-50 I.R.B. 785
2025-27, 2025-51 I.R.B. 851
Notices:
2025-32, 2025-27 I.R.B. 1
2025-33, 2025-27 I.R.B. 4
2025-34, 2025-27 I.R.B. 6
2025-35, 2025-27 I.R.B. 8
2025-31, 2025-28 I.R.B. 14
2025-36, 2025-30 I.R.B. 192
2025-37, 2025-30 I.R.B. 198
2025-40, 2025-31 I.R.B. 266
2025-39, 2025-32 I.R.B. 308
2025-28, 2025-34 I.R.B. 316
2025-41, 2025-34 I.R.B. 325
2025-42, 2025-36 I.R.B. 351
2025-43, 2025-36 I.R.B. 356
2025-44, 2025-37 I.R.B. 386
2025-45, 2025-37 I.R.B. 388
2025-38, 2025-38 I.R.B. 392
2025-47, 2025-40 I.R.B. 441
2025-51, 2025-41 I.R.B. 448
2025-52, 2025-41 I.R.B. 474
2025-54, 2025-41 I.R.B. 479
2025-46, 2025-43 I.R.B. 533
2025-50, 2025-43 I.R.B. 542
2025-53, 2025-43 I.R.B. 624
2025-55, 2025-43 I.R.B. 625
2025-49, 2025-44 I.R.B. 627
2025-57, 2025-45 I.R.B. 692
2025-61, 2025-45 I.R.B. 693
2025-63, 2025-46 I.R.B. 709
2025-65, 2025-47 I.R.B. 717
2025-62, 2025-48 I.R.B. 740
2025-67, 2025-49 I.R.B. 761
2025-69, 2025-50 I.R.B. 766
2025-70, 2025-50 I.R.B. 773
2025-71, 2025-50 I.R.B. 779
2025-72, 2025-51 I.R.B. 840
2025-73, 2025-51 I.R.B. 845
2025-72, 2025-51 I.R.B. 848
2025-60, 2025-52 I.R.B. 853
2025-68, 2025-52 I.R.B. 856
2025-75, 2025-52 I.R.B. 867
2025-77, 2025-52 I.R.B. 872
2025-78, 2025-52 I.R.B. 874
Proposed Regulations:
REG-125710-18, 2025-30 I.R.B. 263
REG-107459-24, 2025-32 I.R.B. 313
REG-132805-17, 2025-35 I.R.B. 342
REG-108822-25, 2025-36 I.R.B. 361
REG-129260-16, 2025-39 I.R.B. 410
REG-108673-25, 2025-42 I.R.B. 494
REG-110032-25, 2025-42 I.R.B. 495
REG-112261-24; REG-116085-23, 2025-42
I.R.B. 522
REG-109742-25, 2025-46 I.R.B. 712
REG-124791-11, 2025-51 I.R.B. 852
Revenue Procedures:
2025-22, 2025-30 I.R.B. 200
2025-24, 2025-31 I.R.B. 273
2025-25, 2025-32 I.R.B. 311
2025-26, 2025-33 I.R.B. 315
2025-28, 2025-38 I.R.B. 393
2025-30, 2025-42 I.R.B. 489
2025-27, 2025-44 I.R.B. 646
2025-32, 2025-45 I.R.B. 695
2025-31, 2025-48 I.R.B. 743
Revenue Rulings:
2025-13, 2025-28 I.R.B. 11
2025-14, 2025-32 I.R.B. 300
2025-15, 2025-32 I.R.B. 302
2025-16, 2025-35 I.R.B. 342
2025-17, 2025-36 I.R.B. 349
2025-18, 2025-37 I.R.B. 365
2025-19, 2025-41 I.R.B. 445
2025-20, 2025-41 I.R.B. 447
2025-21, 2025-45 I.R.B. 690
2025-22, 2025-48 I.R.B. 719
2025-23, 2025-48 I.R.B. 749
2025-24, 2025-50 I.R.B. 764
Treasury Decisions:
10021, 2025-31 I.R.B. 264
10031, 2025-32 I.R.B. 304
10033, 2025-40 I.R.B. 411
10035, 2025-42 I.R.B. 484
10034, 2025-43 I.R.B. 523
10036, 2025-43 I.R.B. 525
10037, 2025-51 I.R.B. 788
10038, 2025-51 I.R.B. 838
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2025–27 through 2025–52 is in Internal Revenue Bulletin
2025–52, dated December 22, 2025.

Bulletin No. 2025–52 iii December 22, 2025
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2025–52
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2025–27 through 2025–52 is in Internal Revenue Bulletin
2025–52, dated December 22, 2025.

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