IRS Form 4547 – In the evolving landscape of family financial planning, the IRS has introduced new tools to help parents save for their children’s future. One such tool is IRS Form 4547, also known as “Trump Account Election(s).” This form allows eligible individuals to establish a tax-advantaged savings account for children and potentially secure a one-time federal contribution. Released in December 2025, it’s part of broader tax reforms aimed at supporting working families through initiatives like the Working Families Tax Cuts. If you’re a parent or guardian wondering how to open a Trump Account or claim the $1,000 Pilot Program Contribution, this comprehensive guide breaks it down step by step.
What Is a Trump Account?
A Trump Account, sometimes referred to as a 530A account, is a tax-favored savings vehicle designed specifically for minors. It operates similarly to a traditional Individual Retirement Account (IRA) but with unique rules tailored for children’s long-term growth. During the “growth period”—from account establishment until the end of the year before the child turns 18—funds must be invested in eligible options like mutual funds or ETFs tracking U.S. company indices. Distributions are restricted, and contributions aren’t deductible under IRC Section 219.
Once the growth period ends, the account transitions to standard IRA rules, allowing for more flexibility but potentially subjecting withdrawals to a 10% additional tax under Section 72(t) unless exceptions apply. The annual contribution limit is $5,000 (adjusted for cost-of-living after 2027), and contributions can come from parents, employers, charities, or even government programs. No contributions can be made until July 4, 2026, but accounts can be set up earlier.
These accounts were created under the One Big Beautiful Bill Act (OBBBA) to promote savings for education, homeownership, or retirement. They aim to give children a financial head start, especially through federal incentives for qualifying families.
The Purpose of IRS Form 4547
IRS Form 4547 serves two primary purposes: electing to open an initial Trump Account for an eligible child and requesting a one-time $1,000 Pilot Program Contribution if the child qualifies. It’s a straightforward one-page form that must be completed by a parent, guardian, or other authorized individual who will act as the responsible party. This responsible party handles investment decisions, rollovers, and naming successors until the child reaches 18.
The form is essential for officially registering the account with the IRS and Treasury Department. Without it (or an alternative online election), no Trump Account can be established. For families with multiple children, the form accommodates up to two per submission, with instructions for adding more.
Eligibility Requirements for Trump Accounts and the Pilot Program
Not every child qualifies for a Trump Account or the federal contribution. Here’s a breakdown:
General Eligibility for a Trump Account
- The child must be under 18 years old.
- They must be a U.S. citizen with a valid Social Security Number (SSN).
- The election must be made by a parent, guardian, or authorized individual who anticipates the child will be their qualifying dependent under IRC Section 152(c) for the tax year.
Eligibility for the $1,000 Pilot Program Contribution
This one-time federal deposit is available only to children born between January 1, 2025, and December 31, 2028. Additional requirements include:
- Being a qualifying child for the electing individual.
- U.S. citizenship and a valid SSN.
- Specific election on Form 4547 (Part III, line 7).
This contribution doesn’t count against the $5,000 annual limit and is funded by the U.S. Treasury.
How to Fill Out IRS Form 4547: Step-by-Step?
Filling out Form 4547 is relatively simple, but accuracy is crucial to avoid delays. Download the form from the IRS website: https://www.irs.gov/pub/irs-pdf/f4547.pdf. Here’s an overview of the key parts:
- Part I: Parent/Guardian or Authorized Individual Information
Enter your full name, SSN, address (including foreign components if applicable), date of birth, phone, and email. You’re designated as the responsible party. - Part II: Child’s Information
Provide details for up to two children: name, SSN, date of birth, relationship, and address. Check the box confirming authorization to open the account. - Part III: Pilot Program Contribution Election
If eligible, check the box on line 7 for each child to request the $1,000 contribution. - Part IV: Consent to Disclose Information
Authorize the IRS and Treasury to create the account and disclose its establishment. - Sign Here
Sign under penalties of perjury, date it, and include paid preparer info if applicable.
For detailed instructions, refer to the official IRS Instructions for Form 4547.
How to File Form 4547 and Next Steps?
You can file Form 4547 with your 2025 individual income tax return or separately via mail or the IRS online portal (available early 2026). Alternatively, use the online tool at trumpaccounts.gov starting July 5, 2026.
After filing:
- The IRS processes the election and establishes the account.
- If elected, the $1,000 Pilot Contribution is deposited (does not count toward annual limits).
- Begin contributions starting July 4, 2026.
Consult a tax professional for personalized advice, as rules may evolve.
Benefits of Establishing a Trump Account
Trump Accounts offer several advantages:
- Tax-Advantaged Growth: Earnings grow tax-deferred, similar to an IRA.
- Federal Seed Money: Up to $1,000 free for qualifying newborns.
- Flexibility for the Future: Funds can support education, housing, or retirement.
- No Income Limits: Available to most families, regardless of earnings.
However, remember the investment restrictions during the growth period and potential penalties for early withdrawals post-18.
Final Thoughts on IRS Form 4547 and Trump Accounts
IRS Form 4547 is a key gateway to securing a brighter financial future for your child through Trump Accounts. With the Pilot Program running through 2028, now is the time for eligible families to act. Stay updated via the IRS website for any changes, and consider professional guidance to maximize benefits. By understanding and utilizing this form, you’re investing in long-term family prosperity.