The IRS has announced that more than 4 million children were enrolled in tax-favoured Trump Accounts, with over 1 million qualifying for a $1,000 federal contribution under a pilot program. The enrolments were based on submissions of Form 4547 filed with individual tax returns. The initiative was introduced under legislation enacted on July 4, 2025, with the stated objective of encouraging early financial planning for minors.
The IRS stated that eligibility for the pilot contribution depends on the child’s date of birth, covering those born between January 1, 2025 and December 31, 2028. The accounts function as tax-advantaged retirement vehicles for minors who have not attained 18 years of age by the end of the relevant calendar year and possess a valid Social Security number. The agency emphasised that the election process has been simplified through a one-page form submitted alongside tax returns. Contributions to these accounts are scheduled to begin from July 4, 2026, and may be made by a broad range of contributors, including family members, employers and philanthropic entities, subject to annual limits.
