Trump Accounts Begin Funding July 4: What Parents Need to Know

Goodman Bookkeeping Team
4 days ago
3 min read

Beginning July 4, 2026, the federal government's new Trump Accounts program enters its next phase. Eligible children can begin receiving the federal pilot contribution, and families can begin funding their accounts. Additional IRS guidance is still expected as the program continues to roll out.

Here's what we know so far.

What Is a Trump Account?

Trump Accounts are tax advantaged investment accounts designed to encourage long term savings for children. The accounts were created under the One Big Beautiful Bill Act and are intended to help families build wealth for a child's future.

Who Qualifies?

The current federal pilot program applies to children who:

Were born between 2025 and 2028
Meet the eligibility requirements established by the Treasury and IRS
Have a Trump Account established by an authorized individual through the required election process

What Happens on July 4?

Beginning July 4:

Eligible guardians who previously completed the Form 4547 Pilot Program election will begin receiving account activation emails from the Treasury.
Once the account is activated, parents and other eligible contributors can begin making contributions.
Eligible children will begin receiving the $1,000 federal pilot program contribution after the election has been processed and the account has been activated.

Already Filed Form 4547?

If you completed Form 4547 with your tax return, keep an eye on your email.

After the Treasury confirms your election has been processed, the authorized individual will receive an activation email with instructions for activating the child's account. Once activated, contributions can begin.

Didn't Complete Form 4547?

There is still an opportunity to complete the election.

Families who did not make the election with their tax return can complete the Trump Account election through their IRS Online Account using ID.me authentication. More detailed IRS guidance is expected in the coming weeks.

Who Can Open the Account?

An authorized individual may establish a Trump Account for an eligible child. This may include:

A parent
A legal guardian
An adult sibling
A grandparent

Who Can Contribute?

Once the account is active, contributions may be made by:

Parents
Grandparents
Other relatives
Friends
Employers
Other eligible contributors

All contributions are subject to the program's annual limits.

Contribution Limits

Most contributions count toward the annual contribution limit, which is generally $5,000 per year during the growth period. This amount is expected to be indexed for inflation after 2027.

The following do not count toward the annual limit:

The $1,000 federal pilot contribution
Qualified general contributions
Qualified rollover contributions

What We Know Today

Current guidance tells us:

Trump Accounts have been established through federal legislation.
Form 4547 is used to make the election.
Eligible pilot participants may receive a $1,000 federal contribution.
Special rules apply during the growth period.
Only one funded Trump Account is allowed per eligible child.

What Is Still Coming?

The IRS has indicated that additional guidance is expected, including:

More detailed implementation instructions
Trustee reporting requirements
Clarification regarding employer contributions
Additional rules for qualified general contributions

Need Help?

As with many new tax programs, guidance continues to evolve. If you have questions about eligibility, completing the election, or how a Trump Account may fit into your family's financial plan, the team at Goodman Bookkeeping & Tax Services is here to help.

This post is for informational purposes only. Goodman Bookkeeping & Tax Services is sharing current IRS/Treasury information to help families understand the account rollout, eligibility, and upcoming deadlines. The screenshot shown is from the official Trump Accounts website. As with any new federal program, additional guidance is still expected.