Tax season is approaching, and for parents of minor children, there’s a new form worth paying attention to. The IRS has finally released Form 4547, which allows taxpayers to register an eligible child for a Trump Account while filing a 2025 tax return.
Although the main feature of these accounts—the ability to contribute money—won’t begin until later in 2026, taxpayers can opt into the program now by making an election with their 2025 tax return.
Here’s what you need to know.
You Have To Make An Election
You’ll make the election using Form 4547, which is now available on the IRS website. The form is a single page, but it serves two distinct functions. First, it allows an authorized individual to elect to open an initial Trump Account for a qualifying child. Second, it provides a separate election to request the $1,000 federal pilot program contribution, if the child is eligible.
That second part is extremely important. If a taxpayer wants the pilot contribution, they must affirmatively request it by checking the appropriate box. Simply opening the account does not trigger ithe $1,000 deposit.
(One practical detail parents may appreciate: Form 4547 allows elections for up to two children on a single form. Taxpayers with more than two qualifying children can file additional forms as needed.)
Form 4547 also introduces the concept of a “responsible party.” This is the individual who will work with Treasury (or its agent) to establish and administer the account. In practice, this person serves as the primary point of contact for account activation and communications and will be required to complete identity verification (more on that below).
Timing Matters
Taxpayers can file Form 4547 with a 2025 return, either on paper or electronically. The instructions also note that Form 4547 may be filed after tax season, including through an online portal once it becomes available.
After the election is processed, Treasury will take steps to establish the account, including sending activation instructions to the responsible party. That activation process is expected to begin in May 2026 and will include identity verification. Until that step is completed, the account is not fully operational.
What won’t happen anytime soon is funding. No contributions of any kind—whether from parents, employers, or the government—can be made before July 4, 2026. That includes the $1,000 pilot contribution.
Who Can Open An Account
The instructions draw an important distinction between simply opening an account and requesting the pilot contribution.
If a taxpayer elects to open only an initial Trump Account, the IRS establishes a priority order for who qualifies as an authorized individual: first a legal guardian, then a parent, followed by an adult sibling, and finally a grandparent.
However, if the taxpayer is also requesting the $1,000 pilot contribution, the rules are more restrictive. In that case, the authorized individual must anticipate that the child will be their qualifying child for the applicable tax year.
This creates an important nuance for families. A taxpayer does not need to have already claimed the child as a dependent on the 2025 return in order to file Form 4547. But checking that box implies a representation about what’s likely to happen. For that reason, the instructions emphasize that taxpayers requesting the pilot contribution should be confident they meet the qualifying-child rules for the year of the election—if you’re filing out the form now, that’s 2026.
The IRS also provides some flexibility, noting that an election may remain valid even if qualifying-child status changes later, provided other requirements are met. Still, taxpayers requesting the pilot contribution should pay close attention to the rules.
Contribution Limits And Withdrawals
Trump Accounts come with a $5,000 annual contribution limit, adjusted for inflation after 2027. But that limit doesn’t apply to all contributions.
The $5,000 cap applies to contributions made by employers under a special employer program and to contributions made by individuals such as parents or grandparents.
Employer contributions, which are included in the $5,000 cap, can’t exceed $2,500 per year. The good part? They are excluded from taxable income.
Other contributions fall outside the $5,000 cap. These include the $1,000 pilot program contribution, qualified general contributions made by governments or charities, and certain rollover contributions. Those amounts do not reduce the $5,000 annual limit available for family or employer contributions.
Some contributions—including the federal pilot contribution, qualified general contributions, and employer contributions—do not create basis in a Trump Account. By contrast, contributions made by parents, grandparents, or others with after-tax dollars do create basis.
You can think of basis as your cost. In this context, it applies to money that’s already been taxed, like gifts from parents and grandparents, that shouldn’t be taxed again.
Here’s why that matters. After the beneficiary turns 18, withdrawals from a Trump Account will generally be treated like distributions from a traditional IRA, which means that part of a distribution may be taxable, and part may be a tax-free return of basis. To prevent after-tax contributions from being taxed twice, the IRS has made clear that basis must be tracked—something that will require careful recordkeeping, particularly for accounts funded by multiple sources over time.
Until then, Trump Accounts are tightly restricted. Because they are intended as long-term savings plans, distributions are generally prohibited while the beneficiary is under 18. The only permitted withdrawals during this period are limited to specific circumstances, such as rolling the account into another Trump Account, correcting excess contributions, or distributing the account upon the beneficiary’s death. The instructions also allow certain qualified rollovers, including limited rollovers to ABLE accounts once the beneficiary reaches age 17.
Hardship withdrawals are not permitted, and you can’t simply close the account and distribute it because your circumstances have changed.
However, once the beneficiary turns 18, most of these restrictions fall away, and the account begins to operate much like a traditional IRA.
Investments
Trump Accounts are subject to significant investment restrictions (that’s been one of the criticisms of the plan). Eligible investments must track U.S. stock indexes, carry no leverage, and have annual fees capped at 0.1%.
The guidance also requires trustees to maintain procedures for monitoring compliance, including the use of default investment options. If an investment becomes ineligible—because fees increase, for example—corrective action is required.
Cash and money market funds are generally not permitted, except in limited circumstances.
Before You File Form 4547
Ready to get started? If you’re planning to file Form 4547 with your 2025 tax return, the instructions suggest making sure you can answer yes to the following:
- The child is under age 18 at the end of the election year and has a valid Social Security number;
- You qualify as an authorized individual (and, if requesting the pilot contribution, expect the child to be your qualifying child);
- You understand that no contributions can be made before July 4, 2026; and
- You are prepared to complete an account activation process in 2026, including identity verification.
Wait, What About That Extra Seed Money?
You may recall that Michael and Susan Dell have pledged $6.25 billion to seed Trump accounts with $250 each for roughly 25 million children under age 10 who were born before 2025 and thus aren’t eligible for the $1,000 pilot program. If not enough families of children under 10 open accounts, any remaining $6.25 billion could be allocated to older children, according to a statement the couple posted online. To be eligible, children must live in ZIP codes with a median household income below $150,000.
Information about that seed money does not yet appear in Form 4547, its instructions, or the IRS guidance. More information will likely be rolled out separately.
What’s Next For Taxpayers
With Form 4547 now available, parents can open a Trump Account as soon as this tax season, even though funds won’t be available just yet. If you’re considering participating, watch for final Treasury and IRS rules.
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