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.
To opt into the program, you'll need to make an election using Form 4547, which is now available on the IRS website. The form serves two distinct functions: allowing an authorized individual to elect to open an initial Trump Account for a qualifying child, and providing a separate election to request the $1,000 federal pilot program contribution, if the child is eligible.
However, be aware that simply opening the account does not trigger the $1,000 deposit. If you want the pilot contribution, you must affirmatively request it by checking the appropriate box on Form 4547.
One key distinction in the rules is the concept of a "responsible party." This individual will work with Treasury to establish and administer the account, serving as the primary point of contact for account activation and communications. They'll also need to complete identity verification, which may involve additional paperwork or documentation.
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. While an election remains valid even if qualifying-child status changes later, taxpayers must still pay close attention to the rules.
Trump Accounts come with a $5,000 annual contribution limit, adjusted for inflation after 2027. However, not all contributions fall within this cap. Employer contributions, which are included in the $5,000 cap, can't exceed $2,500 per year and are excluded from taxable income. Other contributions, such as qualified general contributions made by governments or charities, do not reduce the annual limit.
The good news is that some contributions – including employer contributions and qualified general contributions – don't create basis in a Trump Account. By contrast, contributions made by parents, grandparents, or others with after-tax dollars do create basis, which will be important for tracking withdrawals later on.
When it comes to investments, Trump Accounts are subject to significant restrictions. Eligible investments must track U.S. stock indexes, carry no leverage, and have annual fees capped at 0.1%. Cash and money market funds are generally not permitted, except in limited circumstances.
Before filing Form 4547, make 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
* You are prepared to complete an account activation process in 2026, including identity verification
Finally, note 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.
To opt into the program, you'll need to make an election using Form 4547, which is now available on the IRS website. The form serves two distinct functions: allowing an authorized individual to elect to open an initial Trump Account for a qualifying child, and providing a separate election to request the $1,000 federal pilot program contribution, if the child is eligible.
However, be aware that simply opening the account does not trigger the $1,000 deposit. If you want the pilot contribution, you must affirmatively request it by checking the appropriate box on Form 4547.
One key distinction in the rules is the concept of a "responsible party." This individual will work with Treasury to establish and administer the account, serving as the primary point of contact for account activation and communications. They'll also need to complete identity verification, which may involve additional paperwork or documentation.
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. While an election remains valid even if qualifying-child status changes later, taxpayers must still pay close attention to the rules.
Trump Accounts come with a $5,000 annual contribution limit, adjusted for inflation after 2027. However, not all contributions fall within this cap. Employer contributions, which are included in the $5,000 cap, can't exceed $2,500 per year and are excluded from taxable income. Other contributions, such as qualified general contributions made by governments or charities, do not reduce the annual limit.
The good news is that some contributions – including employer contributions and qualified general contributions – don't create basis in a Trump Account. By contrast, contributions made by parents, grandparents, or others with after-tax dollars do create basis, which will be important for tracking withdrawals later on.
When it comes to investments, Trump Accounts are subject to significant restrictions. Eligible investments must track U.S. stock indexes, carry no leverage, and have annual fees capped at 0.1%. Cash and money market funds are generally not permitted, except in limited circumstances.
Before filing Form 4547, make 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
* You are prepared to complete an account activation process in 2026, including identity verification
Finally, note 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.
and what's up with the $5k annual limit but some contributions don't count towards it? sounds like a total headache for ppl trying to navigate this thing...but hey if michael and susan dell are seeding it with 6.25 billion dollars then i guess that's a good start lol
i know some ppl might be stressing about filing forms and whatnot but theres actually something kinda cool coming thru... trump accounts! 
apparently they let u open an account 4 ur minor kiddo while filin 2025 taxes, & if u do, u get $1k from the gov 
, you know? one minute tax season rolls around, and the next, there's this whole new program to opt into. i mean, who comes up with stuff like this? 
anyway, i guess the good news is that some people (like the Dells) are pitching in to help out some deserving kids 
but on a more serious note... have you seen the rules for these Trump Accounts? it's like, they're trying to make sure no one gets taken advantage of, which is actually kinda cool 
just don't expect me to be doing any math or anything related to my taxes this year 
. Plus, if you contribute money with after-tax dollars (like cash or your own money), it'll affect how much you can withdraw later on 
.
. But overall, I think it's a good idea to double-check all the rules before filling out Form 4547 
.
So yeah, parents of minors can register their kiddos for this thingy with Form 4547... 
It's like an account that lets you contribute $$ to your mini-me 
But there are some rules man... 
You gotta be the "responsible party" 
, which means you're in charge of all that paperwork 
. And don't even get me started on the investments 
and stuff... 
and how I'm gonna spend my days snorkeling with sea turtles and eating poke bowls 
. But anyway, back to Trump Accounts... I mean, what's the point of having a $5,000 annual contribution limit if you can't even put in more than that? It feels like they're just taking away money from people who need it, you know? And those restrictions on investments? Crazy! Who does cash and money market funds, anyway? 
But seriously, I'm still trying to wrap my head around this whole thing...