The IRS is proposing new rules for the use of the Trump Accounts savings plan
Altimeter Capital Founder, Chairman and CEO Brad Gerstner discusses the benefits of Trump Accounts for children on Mornings with Maria.
I The IRS and the Treasury Department on Friday laid out proposed new rules and procedures covering the implementation of Trump Accounts for parents and guardians who want to use savings accounts for their children.
Trump Accounts were created under the One Big Beautiful Bill Act passed last year and are expected to open for contributions after July 4, 2026. Before the official launch of the accounts – they may be opened to children born between Jan. 1, 2025, and Dec. 31, 2028, and those born before 2025 who are under the age – of the IRS to have Treary regulations 18 years old accounts.
The new proposed rules include procedures for opening a first Trump Account using Form 4547, which allows an authorized person to make an election to open a first Trump Account. The election to open a Trump Account must be made on Dec. 31 on or before the calendar year in which the eligible person turns 17.
Instructions for Form 4547 are currently available on the IRS website and the agency plans to allow individuals to file a one-page version of the form at the same time they file their tax return or in a separate online location.
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Americans who want to create a Trump account for their children can do so using IRS Form 4547. (Valerie Plesch/Bloomberg via Getty Images)
The form also gives the person the option to request a $1,000 donation to the Treasury Department’s screening program for a qualified child’s Trump Account. While children born between the beginning of 2025 and the end of 2028 are eligible for the corporate donationthose born before 2025 are not eligible for seed money.
If the $1,000 test plan election is made at the same time as the decision to open the first Trump Account, the authorized person can make the election to contribute.
If no test program election is made at the time of election to open a Trump account, a different process will be used to determine the authorized person. The proposed order of priority would be the legal guardian, parent, older sibling and grandparent of the eligible person.
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Children born between January 2025 and December 2028 are eligible to receive a $1,000 seed donation to Trump accounts from the federal government. (Michael Nagle/Bloomberg via Getty Images)
Additionally, the proposed rules state that the person making the election to open the Trump Account will be the responsible party with the authority to act. investment choices among the options available when the beneficiary of the account is under the age of legal authority.
The responsible party may also request a qualified person rollover contribution in the Trump rollover account, request a transfer of a qualifying ABLE rollover contribution under certain rules or designate a successor in charge of the account.
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IRS chief Frank Bisignano said the agency and the Treasury are working to ensure families can take advantage of Trump’s accounts. (Mandel Ngan/AFP via Getty Images)
“Trump Accounts are a family-friendly program that will help millions of Americans use the power of our economy to raise this generation and generations to follow and unlock the American dream,” said IRS Commissioner Frank Bisignano.
“Creating Trump Accounts was one of the most important provisions President Trump One Big Good Bill, and these rules are an example of the hard work of Treasury and the IRS in developing the guidance needed to ensure that eligible families can use Trump accounts,” added Bisignano.
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