New guidance explains how parents and guardians can open accounts for children
of ConsumerAffairs-
The Treasury Department and IRS issued proposed regulations outlining how Trump Accounts will be opened, managed, and administered.
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Parents, guardians, and other authorized individuals could open the accounts for eligible children using a new IRS Form 4547, with elections due before the child turns 17.
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The proposal also explains who can open the accounts, who controls them while the child is a minor, and how a $1,000 federal pilot contribution could be requested.
The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have released proposed regulations detailing how newly created Trump Accounts would operate, offering the first guidance for families interested in opening the accounts for children.
The proposal establishes general requirements for the accounts, definitions tied to eligibility, and rules governing how an initial account may be opened by an authorized individual on behalf of a child. It also clarifies who will be responsible for managing the account until the beneficiary reaches legal capacity.
Trump Accounts are a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up this generation and generations to follow and unlock the American Dream, IRS Chief Executive Officer Frank J. Bisignano said in a statement announcing the proposal.
The accounts were created as part of President Donald Trumps One, Big, Beautiful Bill, which the IRS said included the provision as a way to encourage long-term savings and financial investment for younger Americans.
How families could open accounts
Under the proposed rules, an authorized individual would open an initial Trump Account by filing Form 4547, Trump Account Election(s). The election could be submitted along with a federal tax return or through a separate IRS online portal.
The election must be made by Dec. 31 of the calendar year in which the eligible child turns 17.
The form also allows families to request a $1,000 pilot program contribution from the federal government for qualifying children under section 6434 of the Internal Revenue Code.
The Treasury and the IRS said they designed the process to be as simple as possible, allowing individuals to complete a single-page election form rather than navigating a more complex application process.
Who can open the account
The proposal outlines who qualifies as an authorized individual to open an account for a child.
If the authorized individual is requesting the $1,000 pilot program contribution at the same time as opening the account, that person automatically has authority to make the election.
If the federal contribution is not requested at the same time, the proposed regulations establish a priority order for who may open the account:
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A legal guardian
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A parent
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An adult sibling
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A grandparent
Who controls the account
In most cases, the person who opens the initial Trump Account would become the responsible party for the account while the child is still a minor.
That individual would have authority to manage the account, including selecting among eligible investments, requesting certain rolloversor transfers,and designating a successor responsible party if needed.
The IRS said it is requesting public comments on all aspects of the proposed regulations before final rules are issued.
The guidance is intended to help parents, guardians, and financial institutions understand how the accounts will work and how families can participate once the rules are finalized.
Posted: 2026-03-10 16:18:32
