What to Know
A Trump Account is a federal savings account for a child under 18. You set it up by making an election on your federal tax return. The account is administered by the U.S. Treasury.
Some children may qualify for a one-time $1,000 pilot contribution from the U.S. Treasury. If eligible, the deposit goes into the child’s Trump Account. It is not added to your tax refund.
Program operations and funding begin in July 2026. Contributions cannot be made before July 4, 2026.
In general, a Trump Account may be established for a child who is under 18 at the end of the tax year when the election is made (and meets other eligibility requirements).
To qualify for the pilot $1,000, the child must meet all of these requirements:
The child must meet qualifying child rules for the authorized individual for that year, and final IRS instructions will confirm any “must-claim” requirements.
To set up a Trump Account, you will need to file Form 4547 with your federal tax return (Form 1040). It is attached to your return for that year. It is not a standalone filing.
To add the form, follow the steps in the Form 4547 - Trump Account Election - Entering in TaxAct FAQ.
No. Form 4547 cannot be attached to:
Use one Form 4547 per child. If you need more, attach additional copies.
After you make the election, the account is administered by Treasury. For account setup questions, Treasury (or its agent) will contact the authorized individual listed on Form 4547.
Total annual contributions are generally limited to $5,000 per child per year, subject to IRS rules.
Certain contributions are not counted, such as:
Employer contributions may be allowed and are subject to a separate annual limitation.
Before age 18, contributions are generally after-tax. Taxes can apply later under IRA-style rules.
Before age 18, investments are limited to eligible broad U.S. equity index funds or ETFs, based on federal criteria.
During the growth period (generally before Jan 1 of the year the child turns 18), distributions are restricted and only allowed for specific reasons (like rollovers, excess contributions, or death).
Beginning Jan 1 of the year the child turns 18, the account is treated similarly to a traditional IRA. Early withdrawals may be subject to a 10% additional tax unless an exception applies (such as qualified higher education expenses or a first-time home purchase).