IRS Form 4547 & the Trump Account Provision

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IRS Form 4547 & the Trump Account – In the ever-evolving landscape of tax benefits and savings options for families, the introduction of Trump Accounts marks a significant development. Established under recent tax legislation, these accounts offer a tax-advantaged way to save for children’s futures, complete with an optional federal contribution. Central to this program is IRS Form 4547, which allows parents and guardians to make key elections. This article breaks down everything you need to know about IRS Form 4547, the Trump Account provision, eligibility, and how to get started, using the latest guidance from official sources.

What Is a Trump Account?

A Trump Account is a new type of traditional Individual Retirement Account (IRA) designed specifically for children under 18. It’s established for the exclusive benefit of an eligible child and functions similarly to a standard IRA but with special rules during a “growth period” that lasts until the end of the year before the child turns 18. These accounts are tax-deferred, meaning contributions grow without being taxed until withdrawal, providing a powerful tool for long-term savings like education, home purchases, or retirement.

Unlike traditional IRAs, Trump Accounts include unique features such as restrictions on early withdrawals and options for employer contributions. They were created to give American children a financial head start, aligning with broader goals of promoting savings and economic opportunity.

The Trump Account Provision: Origins and Key Details

The Trump Account provision stems from the One Big Beautiful Bill Act (OBBBA), also referred to as the Working Families Tax Cuts. This legislation, enacted in late 2024, introduces Trump Accounts as a cornerstone policy to support families during America’s 250th anniversary celebrations. The provision aims to jumpstart savings for the next generation by allowing tax-deferred accounts for minors, with an aggregate annual contribution limit of $5,000 (adjusted for inflation after 2027).

A standout feature is the pilot program, which provides a one-time $1,000 contribution from the U.S. Treasury for children born between January 1, 2025, and December 31, 2028. This federal seed money is invested immediately, often in index funds, to encourage growth. Parents can add more through qualified contributions, and employers may participate via Section 128 contributions. The program emphasizes accessibility, with no income limits for basic eligibility, making it a broad-based benefit for U.S. families.

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Who Is Eligible for a Trump Account?

Eligibility for a Trump Account is straightforward but specific:

The child must be a U.S. citizen.
They must have a valid Social Security Number (SSN).
The child must be under 18 years old by the end of the calendar year in which the account is elected.

For the $1,000 pilot contribution, the child must be born in the qualifying years (2025–2028). An “authorized individual”—typically a parent, guardian, or legal representative—must make the election. There’s no requirement for the child to have earned income, unlike some other IRA types, which broadens access.

If you’re filing taxes for 2025, you can elect to open an account even if contributions can’t be made until July 4, 2026. This early election secures the account and potential pilot funds.

IRS Form 4547: Step-by-Step Overview

IRS Form 4547, titled “Trump Account Election(s),” is the key document for initiating a Trump Account. Released in final form in December 2025, it’s a simple one-page form that serves two main purposes:

Electing to open an initial Trump Account for an eligible child (Parts I, II, and IV).
Opting into the $1,000 pilot program contribution if eligible (Part III).

How to Fill Out Form 4547?

Part I: Enter the authorized individual’s information, including name, SSN, and relationship to the child.
Part II: Provide the child’s details, such as name, SSN, date of birth, and citizenship confirmation.
Part III: Check the box to request the $1,000 contribution (only for qualifying birth years).
Part IV: Sign and date, authorizing the IRS and Treasury to create the account.

The form can be attached to your 2025 Form 1040 tax return or filed separately via mail or electronically through the IRS portal. Starting mid-2026, online elections will be available at trumpaccounts.gov. By completing it, you authorize the creation of the account, but actual deposits begin later in 2026.

The $1,000 Pilot Program Contribution Explained

One of the most appealing aspects of the Trump Account provision is the pilot program contribution. Eligible children receive $1,000 from the federal government, deposited directly into their Trump Account and invested for growth. This is a one-time benefit, not recurring, and it’s available only for births in 2025–2028 as part of the program’s initial rollout.

To claim it, simply check the appropriate box on Form 4547. The Treasury will process activations starting in May 2026, with funds becoming available for investment by July. Parents aren’t required to contribute additional funds, but doing so can amplify the account’s potential through tax-deferred growth.

Benefits, Rules, and Considerations for Trump Accounts

Trump Accounts offer several advantages:

Tax Deferral: Earnings grow tax-free until withdrawal after age 18.
Flexibility: Funds can be used for qualified expenses like education or first homes without penalties (subject to rules).
Employer Matching: Some employers may contribute under Section 128, similar to 401(k) matches.
No Income Phase-Outs: Accessible to most families, regardless of income.

However, there are rules to note:

Contributions are limited to $5,000 annually per child.
Withdrawals before the end of the growth period may incur penalties.
Accounts convert to standard IRAs at age 18.

Credit unions, banks, and investment firms like Vanguard and Fidelity are preparing to offer these accounts, often with low fees and easy setup.

How and When to File IRS Form 4547?

You can file Form 4547 immediately with your 2025 tax return, even if e-filing. For paper filers, mail it to the address in the instructions. The IRS recommends consulting a tax professional if you’re unsure about eligibility or how it interacts with other savings vehicles like 529 plans.

As of February 2026, the program is in its early stages, with full rollout expected mid-year. Stay updated via irs.gov or trumpaccounts.gov for any changes.

Final Thoughts on IRS Form 4547 and Trump Accounts

The Trump Account provision, facilitated by IRS Form 4547, represents an innovative approach to family financial planning. By providing a $1,000 head start and tax advantages, it empowers parents to build wealth for their children from day one. If you have eligible kids, consider filing soon to secure these benefits. Always verify the latest details with official IRS resources, as tax laws can evolve. This program not only supports individual families but also contributes to broader economic growth by encouraging early savings habits.