Beginning in July 2026, a new form of retirement savings accounts begins for children under the age of 18 known as Trump Accounts. You must elect to participate in these accounts for your qualifying child(ren) by filing Form 4547. This form can be included in your tax return this year. Making the election has no effect on your tax return for 2025 or later.
For children born between 2025 and 2028, the federal government will make a one-time tax-free contribution of $1,000 into the Trump Account of those children whose parents have made the election to receive it. If you do not make the election, the account will not be created or funded. A separate check box in Part III on Form 4547 allows the $1,000 Pilot Program Contribution for newborns to be made.
The Dell Foundation has contributed $6.25 billion to partially fund Trump Accounts for children under age 11 in certain geographic areas. Children in approximately 75% of Zip Codes may be one eligible for this tax-free contribution to a child’s Trump Account. Your election by filing Form 4547 makes it possible for your child(ren) to receive their share of that contribution, and others that may be added later.
By filing this election, you are NOT required to make any contributions to your child(ren)’s accounts at any time. However, your child(ren) cannot receive either the pilot money for newborns nor any other contributions without making the election on Form 4547.
If you choose to make contributions to a child’s Trump Account, such personal contributions are generally not tax deductible. However, pre-tax salary-reduction contributions will be allowed to Trump Accounts owned by an employee’s dependent child through an employer-sponsored cafeteria plan, up to $2,500 per employee per year.
Funds will be invested in a diversified portfolio of low-cost index funds designed to maximize long-term growth while minimizing risk. Funding cannot begin until July 4, 2026. Growth in the account will be tax-deferred, and generally withdrawals will not be allowed until the child turns 18. Then control of the account passes to the child, and withdrawals will be allowed using the same tax rules as traditional IRA accounts.
If you do not include Form 4547 with your tax filing, you may complete it online on the government website. DO NOT complete an online form if you submitted the form with your tax return! Eligibility to create the account is limited to 1) Legal guardians, 2) Parents, 3) Adult sibling, or 4) Grandparent of the child, in that order of priority. For more information, see the instructions for Form 4547 or visit trumpaccounts.gov and IRS.gov.