IRS Instruction 4547 - Instructions for Form 4547, Trump Account Election(s)

IRS Instruction 4547 – In the evolving landscape of child savings and retirement planning, the IRS has introduced Trump Accounts as a innovative way for families to build long-term financial security for their children. Established under the One Big Beautiful Bill Act (OBBBA), these accounts function as specialized traditional IRAs with unique rules tailored for minors. If you’re a parent, guardian, or authorized family member looking to set up a Trump Account, IRS Form 4547 is the key document you’ll need. This comprehensive guide breaks down the instructions for Form 4547 (Rev. December 2025), including eligibility, filing steps, and the optional $1,000 pilot program contribution. Whether you’re filing with your 2025 tax return or separately, understanding these instructions can help you maximize benefits for your child’s future.

What Is a Trump Account?

A Trump Account, also referred to as a 530A account under the Internal Revenue Code, is a tax-favored savings vehicle designed exclusively for children under the age of 18. It’s essentially a traditional IRA owned by the child, but with a “growth period” that imposes specific restrictions until the year before the child turns 18. During this period:

Investments are limited to eligible options, such as mutual funds or ETFs that track indexes primarily composed of U.S. companies.
Contributions come from various sources, including government programs, employers, or family members, with no requirement for the child to have earned income.
Distributions are heavily restricted to prevent early withdrawals, ensuring the funds grow for long-term goals like education, home purchases, or retirement.

After the growth period ends (December 31 of the year before the child’s 18th birthday), standard IRA rules apply, including potential penalties for early distributions but with exceptions for qualified expenses. Trump Accounts aim to promote financial independence by allowing tax-deferred growth, and they can receive rollovers from other accounts under certain conditions.

Purpose of IRS Form 4547

Form 4547, titled “Trump Account Election(s),” serves two main purposes:

Establishing an Initial Trump Account: This election creates the account for an eligible child, designating a responsible party (typically the filer) to manage it during the minor’s years.
Electing the $1,000 Pilot Program Contribution: For children born between January 1, 2025, and December 31, 2028, you can request a one-time $1,000 deposit from the U.S. Treasury to kickstart the account.

The form must be filed by an authorized individual, and it’s crucial for activating the account with the IRS and Treasury Department. No contributions, including the pilot amount, can be made before July 4, 2026, giving families time to prepare.

Who Is Eligible to File Form 4547?

Not everyone can file Form 4547—eligibility is tied to both the filer and the child.

For the Filer (Authorized Individual)

To Open an Account Only: Priority goes to legal guardians, then parents, adult siblings, or grandparents. You must certify under penalties of perjury that you’re authorized and that no higher-priority individual has already filed.
To Open an Account and Elect the Pilot Contribution: You must be the person who can claim the child as a qualifying child on your tax return (per IRS Publication 501). This includes parents or guardians expecting to claim the child as a dependent.

For the Child (Account Beneficiary)

Must be under 18 at the end of the election year (e.g., born after December 31, 2008, for a 2026 election).
Requires a valid Social Security Number (SSN) issued by the SSA for employment purposes before the election date.
Must be a U.S. citizen or meet specific immigration criteria for SSN validity.
No prior Trump Account election can have been filed for the child.
For the pilot contribution: Born after December 31, 2024, and before January 1, 2029.

If filing for multiple children, attach additional Forms 4547.

Step-by-Step Guide to Filling Out Form 4547

Form 4547 is divided into four parts. Here’s how to complete it based on the official instructions:

Part I: Authorized Individual’s Information

Enter your full name, address, SSN or ITIN (for nonresidents), phone number, and email.
Use names exactly as they appear on your Social Security card or tax records.

Part II: Child’s Information

Provide the child’s name, SSN, date of birth, relationship to you, and address (if different from yours).
Confirm eligibility by checking boxes for age, SSN validity, citizenship, and no prior election.

Part III: Pilot Program Contribution Election

Check the box if the child qualifies (born 2025–2028) and you want the $1,000 Treasury contribution.
This is optional but recommended for eligible families to boost initial savings.

Consent to information disclosure for account setup.
Sign under penalties of perjury. For paper forms, use a handwritten signature; electronic filings follow software guidelines.
If using a paid preparer, they must complete their section.

For detailed walkthroughs, resources like video tutorials can be helpful.

How and When to File Form 4547

Timing: File anytime starting now, but accounts activate in May 2026. Include it with your 2025 tax return for fastest processing.
Methods:
- Electronic: Attach to e-filed Form 1040, 1040-SR, or 1040-NR via tax software like TaxAct or Taxware.
- Paper: Mail to the IRS address listed in the instructions (varies by refund status).
- Online: Available mid-2026 at trumpaccounts.gov.
Important Notes: Cannot file with amended returns (Form 1040-X) or extensions. Keep records indefinitely as they may be relevant for tax administration.

After filing, the Treasury will send activation information, allowing you to choose a trustee (e.g., a bank) and begin contributions after July 4, 2026.

Benefits of Trump Accounts and the Pilot Program

Trump Accounts offer several advantages:

Tax-Deferred Growth: Earnings grow tax-free until distribution.
Flexible Contributions: Up to $5,000 annually from non-government sources (adjusted for inflation post-2027), plus unlimited qualified contributions from employers or charities.
Employer Incentives: Section 128 allows employers to contribute up to $2,500 per year.
Pilot Boost: The $1,000 Treasury seed for qualifying kids born 2025–2028 provides an immediate head start.
Long-Term Flexibility: Post-18, funds can be used like a traditional IRA, with rollovers to Roth IRAs possible.

These features make Trump Accounts a powerful tool for college savings, first homes, or retirement, especially when combined with other plans like 529 accounts.

Common FAQs About IRS Form 4547 and Trump Accounts

Can I open a Trump Account for a child born before 2025?

Yes, as long as they’re under 18 and meet other criteria, but they won’t qualify for the $1,000 pilot contribution.

What if multiple family members want to file?

Only one election per child; priority goes to guardians or parents. Coordinate to avoid duplicates.

Are there investment restrictions?

Yes, during the growth period, only IRS-approved index-tracking funds or ETFs focused on U.S. companies.

How do I track my Form 4547 status?

Use the IRS “Where’s My Refund?” tool if filed with a return, or check trumpaccounts.gov once live.

Is there a Spanish version?

Yes, Instructions for Form 4547 (SP) are available on IRS.gov.

For more details, consult IRS Publication 590-A/B or a tax professional.

Final Thoughts on Getting Started with Trump Accounts

Setting up a Trump Account via Form 4547 is a straightforward step toward securing your child’s financial future. With tax advantages, restricted access to encourage growth, and the potential $1,000 pilot kickstart, it’s an opportunity worth exploring in 2026. Always verify eligibility and consult trusted sources like the IRS website for the latest updates. By acting early, you can leverage this program to build generational wealth. Download the form and instructions directly from IRS.gov to get started today.