What Is IRS Form 4547? Full Guide for U.S. Taxpayers

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What Is IRS Form 4547? In the ever-evolving landscape of U.S. tax laws, new forms and programs emerge to help families build financial security. One such development is IRS Form 4547, introduced under recent legislation to facilitate the creation of special savings accounts for children. If you’re a parent, guardian, or tax professional wondering “What is IRS Form 4547?” this comprehensive guide breaks it down step by step. We’ll cover its purpose, eligibility requirements, how to file it, and key benefits for U.S. taxpayers. By understanding Form 4547, you can take advantage of opportunities like the Trump Account and its pilot program contribution.

What Is IRS Form 4547?

IRS Form 4547, officially titled “Trump Account Election(s),” is a tax form used by authorized individuals to establish a Trump Account—a type of traditional Individual Retirement Account (IRA) designed exclusively for eligible children. This form allows you to make elections for opening an initial account and, if applicable, requesting a one-time $1,000 pilot program contribution from the U.S. Treasury.

Introduced as part of the One Big Beautiful Bill Act (OBBBA), Trump Accounts aim to promote long-term savings for minors, functioning similarly to IRAs but with unique rules during a “growth period.” The form became available in late 2025, with contributions starting July 4, 2026. It’s a straightforward document that can be filed with your tax return or separately, making it accessible for families looking to secure their child’s financial future.

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Key Features of a Trump Account

Type of Account: A modified traditional IRA for children under 18.
Contribution Limit: Up to $5,000 annually (adjusted for inflation after 2027), separate from other IRA limits.
Growth Period: Starts when the account is opened and ends on December 31 of the year before the child turns 18. During this time, investments are limited to eligible options like mutual funds or ETFs tracking U.S. indices, and distributions are generally restricted.
Post-Growth Period: After the growth period, standard traditional IRA rules apply.

Trump Accounts can receive contributions from various sources, including employers, and no tax deduction is allowed for individual contributions under IRC Section 219.

When and Why to Use IRS Form 4547

Form 4547 is essential if you want to set up a Trump Account for a child. It’s not just about saving—it’s about leveraging government incentives for future growth. Here’s when to consider it:

Establishing the Account: Use the form to elect the creation of an initial Trump Account for a child who is a U.S. citizen, has a valid Social Security Number (SSN), and is under 18 at the end of the tax year.
Pilot Program Election: For children born between January 1, 2025, and December 31, 2028, you can request a $1,000 contribution from the Treasury. This is a one-time boost to kickstart the account.
Rollover Options: During the growth period, you can transfer the balance to a rollover Trump Account via trustee-to-trustee transfer.

The form must be completed by an authorized individual, such as a legal guardian, parent, adult sibling, or grandparent (in that order of priority). If electing only the account (without the pilot contribution), broader family members can qualify. For the full election including the $1,000, the child must be a qualifying child of the authorized individual.

Eligibility Requirements for Trump Accounts and Form 4547

Not every child qualifies for a Trump Account. Here’s a breakdown:

For the Account Beneficiary (Child)

Must be under 18 by the end of the election year.
U.S. citizen with a valid SSN.
No prior Trump Account election made.

For the Pilot Program Contribution

Born after December 31, 2024, and before January 1, 2029.
Must meet the above criteria plus be a qualifying child (e.g., dependent) of the authorized individual.

The account trustee must be a bank or IRS-approved nonbank entity.

Step-by-Step Guide: How to Fill Out and File IRS Form 4547?

Filing Form 4547 is straightforward, especially if done electronically with your tax return. Follow these steps:

Gather Information: You’ll need the child’s name, SSN, date of birth, and your details as the authorized individual.
Complete Parts of the Form:
- Part I: Enter your (authorized individual’s) information.
- Part II: Provide the child’s details.
- Part III: Check the box for the $1,000 pilot contribution if eligible.
- Part IV: Sign under penalties of perjury.
File the Form:
- Attach it to your Form 1040 tax return for the fastest processing.
- Alternatively, mail it separately or submit online via trumpaccounts.gov (available mid-2026).
- E-filing with your 2025 return is recommended for speed and security.

After filing, the IRS and Treasury will process the election and establish the account. Contributions can begin in July 2026.

Benefits and Considerations for U.S. Taxpayers

Trump Accounts offer tax-advantaged growth, similar to IRAs, with the added perk of the pilot program for newborns in 2025-2028. Benefits include:

Tax-deferred growth on investments.
Employer contributions possible under Section 128.
Free $1,000 starter fund for eligible kids.

However, consider:

Restricted investments and distributions during growth period.
No tax deductions for contributions.
Penalties for early withdrawals post-growth period, per IRA rules.

Common Questions About IRS Form 4547

Can I file Form 4547 for multiple children? Yes, complete separate sections or forms for each child.
What if I’m not the parent? Authorized individuals include guardians, siblings, or grandparents if higher-priority persons aren’t available.
Is there a deadline? File before the child turns 18, but for the pilot, act soon after birth for 2025-2028 kids.

Final Thoughts on IRS Form 4547 and Trump Accounts

IRS Form 4547 represents a forward-thinking approach to child savings, blending IRA benefits with government support. By filing this form, U.S. taxpayers can set their children up for financial success. Always consult a tax professional for personalized advice, and check IRS.gov for the latest updates. Starting in 2026, this could be a game-changer for family tax planning—don’t miss out on the pilot program if your child qualifies.