What You Need to Know About the Trump Accounts

These accounts, established under the One Big Beautiful Bill Act (P.L. 119-21), are a type of tax-deferred investment account designed for children under age 18. The IRS has released Form 4547, which is used to make the initial election to establish a Trump account for an eligible child.

While we are committed to helping you take advantage of new tax benefits, we want to be transparent about the Trump account process. Filing Form 4547 is only the first step in establishing a Trump account. After the form is filed, there are additional steps required to activate and manage the account, including an authentication process and subsequent account setup with a designated trustee. These steps require personal information and direct action from the authorized individual (such as a parent or guardian) that we, as your tax advisors, do not have access to and cannot complete on your behalf.

Because we do not have all the necessary information or authority to complete these subsequent steps, we will not be automatically filing Form 4547 for clients this tax season. We believe this approach is in your best interest to ensure the account is set up correctly and securely, and to avoid any delays or complications in the process.

Trump accounts are a new type of traditional IRA for children under 18, with special rules during the “growth period” (from account opening until the year the child turns 18). One of the key features of the program is a government-funded pilot contribution:

• $1,000 Pilot Program Contribution: If your child is a U.S. citizen, has a valid Social Security number, and is born after December 31, 2024, and before January 1, 2029, you may elect to receive a $1,000 government contribution to their Trump account. This election is made on Form 4547 and is available for children who are anticipated to be your qualifying child for the year the election is made.
• Additional $250 Contribution: In addition to the $1,000 government contribution, there may be an additional $250 contribution funded by private donors (such as the recent pledge from Michael and Susan Dell).
• Other Eligible Contributions: Trump accounts may also accept additional contributions from parents, guardians, or other family members, subject to annual contribution limits set by the IRS. Be sure to review the IRS guidelines for annual limits and qualified sources of contributions to maximize the benefits of your child’s Trump account.

If you are interested in establishing a Trump account for your child and claiming the pilot program contribution, you will need to complete Form 4547 yourself and follow the instructions provided by the IRS (available at trumpaccounts.gov). After filing Form 4547, you will receive further instructions from the Treasury Department or its agent to activate and manage the account. For more information, you can visit the IRS’s dedicated website for Trump accounts at trumpaccounts.gov.

We are happy to answer any questions you may have about eligibility or the tax implications of Trump accounts, but the actual account setup and management should be handled directly by you as the authorized individual.

Thank you for your understanding, and please let us know if you have any questions about this or other new tax law changes.