WASHINGTON, D.C. — More than 4 million children have been enrolled in newly created tax-advantaged savings accounts, with over 1 million qualifying for a federal $1,000 contribution under a pilot program, according to the Internal Revenue Service.
What This Means for You
- Families may qualify for a $1,000 federal contribution for eligible children
- New tax-advantaged accounts allow long-term savings for minors
- Enrollment is tied to filing a simple form with a federal tax return
The accounts, known as Trump Accounts, were established under a federal law enacted on Friday, July 4, 2025, creating a new type of tax-favored savings vehicle for minors.
The IRS said participation figures are based on submitted election forms filed with individual tax returns.
How the Program Works
Trump Accounts function similarly to retirement-style accounts but are designed for minors. A parent, guardian, or other authorized individual can request the creation of an account for a child under age 18 who has a valid Social Security number.
To enroll, eligible individuals must submit IRS Form 4547 with their tax return. The form allows families to both establish the account and opt into the pilot program.
“The IRS has been working closely with the Treasury Department to make the election process as simple and easy as possible by permitting taxpayers to fill out a one-page form when they file their tax return,” IRS Chief Executive Officer Frank J. Bisignano said.
$1,000 Federal Contribution
The pilot program provides a one-time $1,000 federal contribution for children born between January 1, 2025, and December 31, 2028, provided they are U.S. citizens with a valid Social Security number.
Eligibility is determined based on the child’s birth date and whether the election is properly submitted with a tax return.
According to the IRS, more than 1 million children are currently covered under these pilot program elections.
Contribution Rules and Timeline
Additional contributions to Trump Accounts can begin starting Sunday, July 4, 2026.
Funds may be deposited by parents, relatives, employers, state governments, or other organizations, subject to annual contribution limits.
Access and Additional Information
More information about the program is available at trumpaccounts.gov.
Details about the broader law that created the accounts can also be found on IRS.gov.
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