Trump Accounts Explained: What Parents and Families Need to Know
What is it:
A Trump account is a type of traditional individual retirement account (IRA), established by an authorized individual, for the exclusive benefit of a child who is under the age of 18. The accounts were established as part of the One Big Beautiful Bill Act, passed in July 2025, but will not be available to open until mid-2026. An authorized individual may elect to establish an initial Trump account for a child by first completing Form 4547.
Who is an Authorized Individual?
An authorized individual is a legal guardian, parent, adult sibling, or grandparent of the child, in that order of priority. If more than one person meets the conditions to be an authorized individual, subject to the order of priority, and no prior Trump account election has been made for the child, then any of the authorized individuals can make the election. For example, if the child doesn’t have a legal guardian, then either parent of the child can make the election regardless of filing status. The authorized individual who is making the election must enter their information in Form 4547.
What is Form 4547?
Form 4547 is used/required to make the election to establish an initial Trump account for the exclusive benefit of a child who is eligible (ie: Born in calendar year 2025). Also, use Form 4547 to make an election for a $1,000 pilot program contribution from the U.S. Treasury to a child’s Trump account if they are eligible for the contribution.
What is the Pilot Program Contribution?
The Pilot Program Contribution is a one time $1,000 contribution from the US Treasury directly into the child’s Trump Account. This $1000 Contribution is only available for children born between January 1st, 2025, and December 31st, 2028. 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 initial Trump account has been opened. However, no pilot program contribution will be deposited in the Trump account of a child earlier than July 2026.
Your Responsibility:
The physical opening of the Trump Account with a fiduciary agency is the responsibility of the authorized individual. The authorized individual can only open the account by filing Form 4547 at this time. Additionally, the website, www.trumpaccounts.gov, will provide information on how to access the Trump Account via the online portal after the Form 4547 is filed. Please refer to this website for more information when determining if the Trump account is right for your children.
How to File Form 4547
At this time, the IRS has released instructions allowing for the form to be filed with your 2025 tax return, or separately as a mailed paper return. If you would like for Barklee to file this form on your behalf, please let us know in your organizer. You can also contact Donna by email and ask for the Form 4547 to be included in your return; cpa@thebarkleegroup.com.
