Proposed Rules for Trump Accounts for Children

The IRS and the Treasury Department recently unveiled proposed regulations aimed at establishing Trump Accounts. These accounts allow parents and guardians to set up savings accounts for children. This initiative stems from the One Big Beautiful Bill Act, which was enacted last year. The Trump Accounts are expected to officially begin accepting donations after July 4, 2026, but there are certain conditions.

Specifically, these accounts will cater to children born between January 1, 2025, and December 31, 2028, as well as children under 18 who were born before 2025. However, before their official launch, the IRS and Treasury need to finalize various guidelines.

The proposed process involves using Form 4547 to open an initial Trump Account. Authorized individuals can initiate this account and select an election. Importantly, this election must occur by December 31 of the calendar year when the child turns 17. Instructions for completing Form 4547 can currently be found on the IRS website, and it’s intended that individuals will be able to submit this form at the same time as their tax returns or through a separate online portal.

Additionally, individuals might request a $1,000 contribution from the Treasury Department’s pilot program for eligible children’s Trump Accounts. It’s noteworthy that only children born between 2025 and 2028 are eligible for this contribution; those born before that date cannot receive the seed money.

If the decision to participate in the pilot program aligns with the choice to open a Trump Account, individuals can elect for contributions. Should no election be made at that time, a different method would be employed to identify authorized individuals. The proposed priority for this includes legal guardians, parents, adult siblings, and grandparents.

The rules designate that the person who elects to open the Trump Account will have the authority overseeing investment options, especially for beneficiaries lacking legal capacity. They can also nominate qualified individuals for account management and handle rollover contributions in compliance with existing regulations.

IRS CEO Frank Bisignano emphasized that Trump Accounts are a family-centric initiative. “This program aims to empower millions of Americans to leverage economic opportunities, thereby enhancing their pursuit of the American Dream,” he stated. He also highlighted the importance of establishing these accounts, describing the legislative framework as a significant advancement.