IRS Form 4547 Requirements

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IRS Form 4547 Requirements – In the ever-evolving landscape of tax-advantaged savings options for families, IRS Form 4547 has emerged as a key tool for establishing Trump Accounts for children. If you’re a parent, guardian, or authorized family member wondering about IRS Form 4547 requirements and who must file, this comprehensive guide breaks it down. We’ll cover everything from eligibility to filing steps, helping you decide if this form is right for your family. Note that filing Form 4547 is elective—it’s not mandatory for everyone, but it’s essential if you want to open a Trump Account and potentially access benefits like the $1,000 pilot program contribution.

What Is IRS Form 4547?

IRS Form 4547, officially titled “Trump Account Election(s),” is a specialized form introduced by the Internal Revenue Service (IRS) to allow eligible individuals to establish a Trump Account for a child. This account functions as a type of traditional Individual Retirement Account (IRA) but with unique rules tailored for minors, including investment restrictions and contribution limits during a “growth period.” The form also enables an optional election for a one-time $1,000 pilot program contribution from the U.S. Treasury, aimed at kickstarting savings for qualifying children.

Trump Accounts were established under the Working Families Tax Cuts legislation, providing a long-term savings vehicle for education, retirement, or other qualified purposes. By filing Form 4547, you’re essentially opting into this program, which includes special tax treatments like non-deductible contributions and restricted distributions until the child reaches adulthood.

What Is a Trump Account?

A Trump Account is a custodial IRA designed exclusively for children under 18. It operates in two phases:

Growth Period: From account establishment until the end of the year before the child turns 18. Investments are limited to eligible mutual funds or ETFs tracking U.S. company indexes. Contributions are capped (e.g., up to $5,000 annually for non-exempt sources, adjusted after 2027), and distributions are heavily restricted to prevent early withdrawals.
Post-Growth Period: Converts to a standard traditional IRA, subject to typical IRA rules, including potential 10% early withdrawal penalties unless exceptions apply (e.g., for education or first-home purchases).

Contributions can come from various sources, including government pilot funds, employers, nonprofits, or rollovers, but none are deductible under section 219. Importantly, no contributions are allowed before July 4, 2026.

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Eligibility Requirements for the Child

To qualify for a Trump Account via Form 4547, the child must meet specific criteria:

Be under age 18 at the end of the tax year when the election is made (e.g., born after December 31, 2008, for a 2026 election).
Have a valid Social Security Number (SSN) issued by the Social Security Administration (SSA) before the election date, valid for employment purposes. SSNs marked “Not Valid for Employment” may require updating if the child is now a U.S. citizen or permanent resident.
Not have had a prior Trump Account election made on their behalf.
For the $1,000 pilot program contribution: Be a U.S. citizen born between January 1, 2025, and December 31, 2028; not have a prior pilot election; and be anticipated as a qualifying child on the filer’s tax return.

These requirements ensure the account benefits eligible minors while aligning with IRS guidelines.

Who Can File IRS Form 4547?

Filing Form 4547 is not required for all taxpayers—it’s only necessary if you wish to establish a Trump Account for an eligible child. However, only “authorized individuals” can submit the form:

For Opening a Trump Account Only: In order of priority—a legal guardian, parent, adult sibling, or grandparent. If multiple people qualify at the same level and no prior election exists, any can file.
For Both Account Opening and Pilot Contribution: An individual who anticipates claiming the child as a qualifying child on their tax return for the election year (e.g., a parent). For 2025 returns, the child doesn’t need to be claimed as a dependent.

The filer becomes the “responsible party” for the account during the child’s minority, handling investments and other decisions. Use one form per child if enrolling multiple children.

Requirements for Filing IRS Form 4547

Beyond eligibility, filers must:

Provide accurate information in Parts I (filer details), II (child details, including SSN and relationship), III (pilot election if applicable), and IV (consent to disclosure).
Sign under penalties of perjury, confirming authorization.
Ensure the child has no prior elections.
After filing, expect activation information from the Treasury starting May 2026 to complete account setup.

All Trump Accounts require an IRS-approved trustee, such as a bank.

How to File IRS Form 4547?

Filing is straightforward but must be done correctly:

Electronically: Attach to your e-filed federal tax return (e.g., Form 1040) for the current year. An online portal may launch mid-2026 for standalone submissions.
By Mail: Send to the appropriate IRS address based on your location and return type (found at IRS.gov/PaperReturns). Do not attach to amended returns (Form 1040-X) or extension requests.
Signature: Handwritten for paper; follow software rules for electronic. Use Form 2848 if represented by an attorney-in-fact.

For paid preparers, complete the relevant section.

Deadlines and Important Dates for Form 4547

No strict deadline for filing, but it’s best with your tax return for efficiency.
Pilot contributions deposit as soon as possible after election and account opening, but no earlier than July 4, 2026.
Activation info starts in May 2026; online elections mid-2026.

Benefits of Filing IRS Form 4547

By filing, you unlock tax-advantaged growth for your child’s future, potential employer contributions (up to $2,500), and the $1,000 seed money for eligible kids. It’s a proactive step toward financial security, similar to 529 plans but with IRA flexibility post-18.

Frequently Asked Questions (FAQs) About IRS Form 4547

Is filing IRS Form 4547 mandatory?

No, it’s elective for those wanting to establish a Trump Account.

Can I file for multiple children?

Yes, but use a separate Form 4547 for each additional child beyond the two spots on the main form.

What if the child doesn’t have an SSN?

They must obtain one valid for employment before filing.

How do I get the $1,000 pilot contribution?

Elect it on Part III of Form 4547 if the child qualifies.

Where can I download Form 4547?

From the IRS website at IRS.gov/Form4547.

Conclusion

Understanding IRS Form 4547 requirements and who can file is crucial for families looking to leverage Trump Accounts for long-term savings. While not mandatory, this form opens doors to valuable benefits like the pilot program. Always consult the latest IRS guidance or a tax professional for personalized advice, as rules may evolve. For the most up-to-date information, visit IRS.gov.