Now that we've covered what Trump Accounts are and who may be eligible, the next question becomes:
How do you actually open one?
Fortunately, the process is relatively straightforward. However, there are several important steps and documentation requirements that families should understand before getting started.
Step 1: Determine Eligibility
Before beginning the application process, verify that the child is eligible for a Trump Account.
Generally, an account may be established if the child:
- Is a U.S. citizen
- Is under age 18
- Has a valid Social Security number
- Has an authorized parent, legal guardian, or other eligible individual who can establish and manage the account until the child reaches adulthood
Families with children born between January 1, 2025, and December 31, 2028 should also determine whether they qualify for the Treasury's one-time $1,000 pilot contribution.
Even if your child is not eligible for the pilot contribution, they may still qualify to open a Trump Account and begin investing for the future.
Step 2: Complete IRS Form 4547
The IRS created Form 4547 – Trump Account Election(s) specifically for this program.
This form serves two primary purposes:
- It establishes the child's initial Trump Account.
- It allows eligible families to request the one-time $1,000 Treasury contribution.
Families can generally submit Form 4547:
- Electronically with their federal income tax return when available,
- Through the online Trump Accounts portal as it becomes available, or
- By paper filing when necessary.
Once the election is processed, the Treasury (or its designated administrator) provides instructions for completing account activation with an approved financial institution.
Documentation You'll Need
Although every family's situation is unique, most applicants should be prepared to provide:
Parent or Authorized Individual
- Full legal name
- Social Security number
- Current mailing address
- Contact information
- Relationship to the child
Child
- Full legal name (exactly as shown on the Social Security card)
- Social Security number
- Date of birth
- Current address
- Citizenship information
- Relationship to the authorized individual
Accuracy is important. Even minor differences between the application and Social Security records can delay processing.
If more than one child is being enrolled, separate information must be provided for each child.
Activating the Account
Submitting Form 4547 does not automatically complete the investment account.
After the IRS processes the election, eligible families receive instructions for authenticating their identity and activating the account through an approved financial institution.
During activation, the responsible adult generally:
- Verifies identity
- Accepts the account terms
- Selects an eligible investment option
- Establishes online access
- Designates future contribution methods if desired
Once activation is complete, contributions may begin, subject to program rules.
What Investments Are Allowed?
Unlike many brokerage accounts, Trump Accounts are intentionally designed to be simple.
During the child's growth period, investments are generally limited to diversified mutual funds or exchange-traded funds (ETFs) that primarily track broad U.S. stock market indexes and satisfy federal cost requirements.
Examples may include broad-market index funds that follow large segments of the U.S. equity market.
Individual stocks, speculative investments, options, cryptocurrencies, and other higher-risk investments generally are not permitted during this phase.
The objective is to provide diversified exposure while helping reduce investment costs and complexity.
Contribution Limits
One of the most attractive aspects of the program is that multiple people may contribute toward a child's future.
Beginning after the program launch, contributions generally may come from:
- Parents
- Grandparents
- Other family members
- Friends
- Employers
- Certain charitable organizations
- Government entities participating in qualified programs
For most private contributions, the current annual combined limit is:
Up to $5,000 per child, per year
This limit applies to total eligible private contributions and is scheduled to be adjusted periodically for inflation after 2027.
Employer Contributions
One of the more innovative features of Trump Accounts is the ability for employers to help employees save for their children's future.
Under current law, employers may contribute toward an eligible employee's Trump Account or the Trump Account of the employee's dependent child, subject to applicable tax rules and annual limits.
Employer contributions generally count toward the overall annual contribution cap and currently have their own limit of up to $2,500 annually during the growth period.
As always, participation is voluntary and each employer determines whether to offer this type of benefit.
A Significant Philanthropic Initiative
In addition to government funding and employer participation, one of the largest private commitments announced to date comes from the Michael & Susan Dell Foundation.
The foundation pledged approximately $6.25 billion to provide $250 supplemental contributions for up to 25 million eligible children living in qualifying ZIP codes with median family incomes below designated thresholds.
Unlike the Treasury's one-time $1,000 pilot contribution, this initiative is privately funded and operates under its own eligibility guidelines. Families should review current program requirements to determine whether they qualify.
Why Starting Early Matters
Although much of the attention has centered on the government's initial $1,000 contribution, the real long-term value of these accounts may come from something much more powerful:
Time.
Consider two hypothetical examples.
Family A
Receives the $1,000 government contribution but never adds another dollar.
Family B
Does not qualify for the government contribution because their child was born before 2025.
However, they contribute $100 per month throughout childhood.
While actual investment returns will vary and are never guaranteed, consistent monthly investing over many years has historically had the potential to produce substantially greater account values than relying solely on an initial deposit.
For many families, regular saving habits may prove to be the most meaningful advantage offered by the program.
That principle has been true across many different investment strategies and continues to be one of the cornerstones of long-term financial planning.
Planning Considerations
A Trump Account should generally be viewed as one component of an overall financial plan—not necessarily a replacement for other savings or investment vehicles.
Depending on a family's goals, other options such as retirement accounts, education savings plans, taxable investment accounts, or emergency savings may continue to play important roles.
Evaluating how these pieces work together can help families develop a strategy aligned with their long-term objectives and financial circumstances.
Coming in Part 3
In the final section of this guide, we'll explore:
- Tax treatment and withdrawal rules
- When the child gains control of the account
- How distributions may be used
- Frequently asked questions
- Potential advantages and limitations
- How Trump Accounts compare with other common savings strategies
- Key planning considerations before opening an account
- Final thoughts for parents and grandparents
Important Disclosure
This article is provided for educational purposes only and should not be interpreted as tax, legal, or investment advice. Eligibility requirements, contribution limits, tax treatment, and program administration may change as additional regulations or guidance are issued. Investors should consult qualified tax, legal, and financial professionals regarding their individual circumstances before making financial decisions. All investing involves risk, including the possible loss of principal, and past performance does not guarantee future results.
IRS – Instructions for Form 4547 (Trump Account Election(s))