By Mark Hodges, CPA, CFP®, Tax Senior Manager
What to Know Before Contributions Begin
Parents and guardians considering the new Trump Account program now have additional tools available as the federal government prepares for the first contribution date later this year. Recent announcements from the U.S. Treasury Department and the IRS provide further guidance on account setup, contributions, and account management.
Created under the One Big Beautiful Bill Act, Trump accounts are tax-deferred investment accounts designed to encourage long-term savings for children. As implementation continues, individuals responsible for managing a child’s savings may want to understand how these accounts work and whether they align with their broader financial goals.
New App and Account Management Tools Now Available
The Treasury Department recently released the Trump Account mobile application, which is now available in the Apple App Store and Google Play. The app allows parents and guardians to manage eligible children’s accounts and monitor account activity once contributions begin.
In addition, the IRS has expanded functionality within IRS Individual Accounts, allowing taxpayers to submit Trump account elections and track the status of those elections online. Individuals seeking to establish an account for an eligible child can submit Form 4547, Trump Account Election(s), through their tax return or their IRS online account.
Those who have already submitted an election should receive instructions from Treasury regarding the account activation process. The activation emails will be distributed in phases before the July contribution date.
Contribution Timeline and Eligibility Requirements
Although eligible individuals have already been able to establish Trump accounts, contributions cannot be made until July 4, 2026. The federal government’s one-time $1,000 contribution for eligible children born between 2025 and 2028 will not be deposited until July 4.
Trump accounts may only be opened for children under age 18. Once the account holder reaches age 18, the account will transition into a traditional IRA beginning January 1 of that year and will become subject to the rules generally applicable to traditional IRAs.
Contributions may come from several sources, including parents, grandparents, other family members, employers, charitable organizations, and government entities, subject to applicable program requirements.
Planning Considerations for Trump Accounts
The program’s tax-deferred structure and government contribution may create additional savings opportunities for eligible children, but those establishing an account should also understand the long-term rules governing the account and its eventual transition to a traditional IRA.
Account holders should also remain alert to potential scams during the account activation process. Treasury has stated that official activation instructions will only be sent via email from no-reply@TrumpAccounts.Treasury.gov and will not be delivered through phone calls or text messages.
Contact your Keiter Opportunity Advisor to discuss whether a Trump account aligns with your household’s long-term savings and financial planning goals.
Source: Thomson Reuters | Checkpoint
About the Author
Mark Hodges, CPA, CFP®, Tax Senior Manager
To assist his clients in meeting their goals and objectives, Mark takes a team approach – working collaboratively with his clients, their other advisors, and legal counsel. He also specializes in identifying and helping to implement trust and estate planning opportunities for his clients. Mark is a member of Keiter’s Private Client Services team.
More Insights from Mark HodgesThe information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
