The Internal Revenue Service (IRS) announced that, based on the agency’s tax return filing data, more than four million children have registered for Trump Accounts, with more than 1 million children eligible to receive the $1,000 contribution from the Trump Accounts pilot program. Parents and legal guardians of children born between 2025 and 2028 can check a box on IRS Form 4547, Trump Account Election(s), to claim the pilot program contribution and file the form along with their 2025 individual federal income tax return.
Congress established Trump Accounts and the Trump Account contribution pilot program as part of the One Big Beautiful Bill, which went into effect on July 4, 2025. Children are eligible for a Trump Account, a new type of tax-advantaged individual retirement account, if they have not turned 18 by the end of the calendar year in which the election is made. Children must also have a valid Social Security number to be eligible for the program. To qualify for the $1,000 federal pilot program contribution, children must have been born between January 1, 2025, and December 31, 2028, and be U.S. citizens with a valid Social Security number.
Once a Trump account is established for a child, individuals can make contributions to the account beginning on July 4, 2026. Parents, relatives, employers, state governments, charitable organizations, and other individuals can make contributions to Trump accounts, subject to an annual limit.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
