Altimeter Capital Founder, Chairman and CEO Brad Gerstner discusses the benefits of Trump Accounts for kids on Mornings with Maria.
The tax authorities and the Treasury Department on Friday proposed new proposed rules and processes related to the implementation of Trump Accounts for parents and guardians who want to use the savings accounts for their children.
Trump accounts were created under the One Big Beautiful Bill Act that became law last year and is expected to open for contributions after July 4, 2026. Before the official launch of the accounts – which can be opened for children born between January 1, 2025 and December 31, 2028, as well as for children born before 2025 who are under the age of 18 – the IRS and Treasury Department must finalize regulations for the accounts.
The newly proposed rules include processes for opening an initial Trump account using Form 4547, which allows an authorized individual to make an election to open the initial Trump account. The election to open a Trump Account must be made on or before December 31 of the calendar year in which the eligible individual turns 17.
Instructions for Form 4547 are currently available on the IRS website, and the agency plans to allow individuals to file a one-page version of the form either at the same time they file their tax returns or on a separate online portal.
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Americans who want to create a Trump account for their children can do so using IRS Form 4547. (Valerie Plesch/Bloomberg via Getty Images)
The form also allows the individual to request the $1,000 contribution from the Treasury’s pilot program for an eligible child’s Trump Account. While children born between early 2025 and late 2028 are eligible for the federal contributionthose born before 2025 are not eligible for the seed money.
If an election is made for the $1,000 pilot program at the same time as the decision to open a first Trump Account, the eligible person can choose to make a contribution.
If the pilot program is not selected at the time of choosing to open a Trump Account, a different process would be used to determine who is an authorized person. The proposed priority order rule would be a legal guardian, a parent, an adult sibling, and then the qualifying person’s grandparent.
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Children born between January 2025 and December 2028 are eligible for a $1,000 seed contribution to Trump Accounts from the federal government. (Michael Nagle/Bloomberg via Getty Images)
Additionally, the proposed rules state that the person who chooses to open a Trump Account will be the responsible party who has the authority to investment choices is one of the options available as long as the beneficiary of the account is younger than the age of legal capacity.
The responsible party may also request a qualified party rollover contribution to a rollover Trump account, request a transfer for a qualified ABLE rollover contribution under certain rules, or select a successor to be responsible for the account.
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IRS CEO Frank Bisignano said the agency and the Treasury Department are working to ensure families can easily take advantage of Trump Accounts. (Mandel Ngan/AFP via Getty Images)
“Trump Accounts are a pro-family initiative that will help millions of Americans harness the power of our economy to lift this generation and generations to follow and unlock the American dream,” said IRS CEO Frank Bisignano.
‘Creating Trump Accounts was one of the most important provisions in President Trump’s historic One Big Beautiful Bill, and this rulemaking is an example of the hard work of the Treasury Department and the IRS in developing the guidelines necessary to ensure eligible families can benefit from Trump Accounts,” Bisignano added.
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