Contributed by: KristineS, FreeTaxUSA Agent, Tax Pro
What is a Trump Account?
When the One Big Beautiful Bill Act (OBBBA) was made law in 2025, one of its provisions created a new type of investment account for kids under age 18 called a Trump Account. You may have heard about it in the news. Read this FreeTaxUSA article to understand more.
Who is eligible for a Trump Account?
In general, children age 17 and under with a Social Security number, may be eligible for a Trump Account. The account may be opened at any time for a child who has not reached age 18 by the end of the year in which the account is opened.
These are the criteria:
- Only an authorized individual may open a Trump Account. For most kids, that simply means their parents. However, “an authorized individual is a legal guardian, parent, adult sibling, or grandparent of the child, in that order of priority.” This individual is also the responsible party for the Trump Account.
- In general, the child must be 17 and under at the end of the year
- The child must have a valid SSN for employment.
- The child is the owner and beneficiary of the account.
- Only those children born between January 1, 2025 – December 31, 2028, are eligible to receive a one-time federal contribution of $1,000.
- Up to $5,000 may be contributed annually.
- Must not already have a Trump Account set up.
How do I open a Trump Account?
For most people, simply filing Form 4547 with their tax return is all that’s needed. FreeTaxUSA will automatically include Form 4547 in the Misc section when you enter an eligible child.
Follow this menu path: Misc > Open an Investment Account > Open a Child Investment Account.
If you already filed your 2025 tax return and included Form 4547, check your status at IRS.gov by logging into your account.
If you missed the opportunity when you filed your 2025 tax return (and future years), don’t worry. You still have options.
- File Form 4547 as a standalone document and mail it in. Use this IRS link to find the mailing address for your state using the column titled ‘Not enclosing a payment use this address.’
- Go to TrumpAccounts.gov and select ‘Download the app’ or ‘Fill out Form 4547’. This will redirect you to your IRS account online, where you can login and submit the form.
How will the Account be funded?
In general, any person may contribute to a Trump Account. Parents/guardians can contribute up to $5,000 a year to their child’s Trump account.
Your child may also qualify for the following additional contributions.
First, if your child is born between January 1, 2025 – December 31, 2028, they may be eligible for the free $1,000 Pilot Program Contribution you may have heard about in the news.
Second, your employer may also contribute up to $2,500 annually to your child’s Trump Account. Check this (growing) list of businesses providing contributions. For most, the only criteria is being a U.S.-based employee. Your employer may also allow you to contribute up to $2,500 (pre-tax) under a Sect. 125 Cafeteria Plan. Talk to your employer directly to find out the details.
Third, you may benefit from the generosity of the Dell Foundation if you have a child under age 10 and live in an area in the United States with less than $150,000 median income. The Dell Foundation is adding $250 to the first 25 million accounts that meet these criteria.
In addition, other philanthropic groups, such as Dalio Family, are also contributing $250 to Trump Accounts for up to 300,000 children under age 10 living in a Connecticut zip code where median income is less than $150,000.
For a more advanced understanding of Trump Accounts, including employer contributions, gift tax implications, and how the accounts convert into retirement savings, visit the American College of Trust and Estate Counsel's website. While it’s not an official government website, it’s a reliable source of information.
FreeTaxUSA is proud to help our customers open Trump Accounts for their eligible children and complete and file Form 4547 with their federal tax return. As always, your federal tax return remains 100% free to file with FreeTaxUSA.