Key facts
- Parents can establish 'Trump Accounts' for children under 18.
- The accounts are part of the Working Families Tax Cuts initiative.
- A pilot program offers a $1,000 contribution for children born between January 1, 2025, and December 31, 2028.
- Eligibility requires U.S. citizenship and a Social Security number.
- The process involves signing into an IRS account and submitting Form 4547.
The U.S. Internal Revenue Service (IRS) has introduced 'Trump Accounts,' a new type of individual retirement account designed to provide financial assistance to children. This initiative, part of the Working Families Tax Cuts, allows parents, guardians, or authorized individuals to establish these accounts for children who will be under 18 by the end of the calendar year and possess a valid Social Security number.
The program features a pilot phase offering a $1,000 contribution for children born between January 1, 2025, and December 31, 2028, provided they are U.S. citizens with a Social Security number. To initiate the process, individuals must sign in to their IRS account via ID.me and submit Form 4547.