The Internal Revenue Service (IRS) and the Treasury Department have released new guidance clarifying how Americans can open and manage so-called Trump Accounts as they near launch on July 4.
The updated rules, announced by the Treasury Department and the IRS, outline the process for opening the accounts, the responsibilities of guardians, and the investment options available. This marks a key step toward fully launching the program in 2026.
Trump Accounts were devised under the One Big Beautiful Bill Act, which was passed in 2025 and offers qualified babies a one-time $1,000 Treasury contribution.
Read more: Trump accounts to launch on July 4: Here’s how they will work & who is eligible
What is the new update on Trump Accounts?
IRS chief executive officer Frank J. Bisignano offered a new update on the rollout of the Trump Accounts on March 6.
He said, “The IRS is developing the guidance needed to ensure that eligible families can take advantage of Trump Accounts.” The latest IRS guidance focuses on technical rules governing account eligibility, election procedures and responsible parties, providing clarity for financial institutions and families planning to enroll.
The accounts will receive a one-time $1,000 government contribution for eligible children born between January 1, 2025 and December 31, 2028, provided parents elect to participate.
The IRS guidance requires parents or another authorized individual to open a kid’s initial Trump Account using Form 4547, either by filing the one-page form with a tax return or through an IRS website, by December 31 of the year the child turns 17.
Bisignano said, “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.”
The one-time $1,000 pilot contribution for qualified children can be requested using the same election form, with English and Spanish copies of Form 4547 and instructions available on IRS.gov.
According to the IRS, the pilot program-electing person, usually a parent or guardian, is the one who can expect the $1,000 pilot election made concurrently with account establishment.
The legal guardian, parent, adult sibling, and grandparent are the suggested order of priority for opening an account if no pilot election is held concurrently.
Read more: Trump accounts row: Is the $1,000 really free? Experts question the new scheme
Who is eligible to open the Trump Accounts?
The IRS confirmed that the person who opens the account becomes the “responsible party,” meaning they control investment choices and administrative decisions until the child reaches adulthood.
The child who will be the beneficiary of the Trump account must:
- Born in calendar years 2025, 2026, 2027, or 2028.
- Possesses a US citizenship
- Obtain a Social Security Number
- Enroll as the first pilot program without any prior account processed by the Secretary of the Treasury on their behalf
