• Are a U.S. citizen
• Are under age 18
• Have a valid Social Security number

Key Benefits

• Tax-deferred growth (similar to a traditional IRA)
• No earned income requirement for the child
• Contributions from parents, relatives, and eligible employers are allowed
• Designed for long-term saving and investing

$1,000 Government Contribution

Children born between January 1, 2025 and December 31, 2028 may receive a one-time $1,000 government contribution.

• No income limits
• No filing status requirements
• Does not count toward annual contribution limits
• The account must be properly opened to qualify

Children born before 2025 may still open an account but generally do not qualify for this contribution.

How Much Can Be Contributed?

Up to $5,000 per child per year total. This includes contributions from:

• Parents or guardians
• Family members
• Eligible employers

Families are responsible for tracking total annual contributions.

How to Open an Account

Parents or guardians can open a Trump Account by completing the following steps:

1. Submit Form 4547, Trump Account Election(s), either through the IRS online portal Submit Form 4547 Online or by filing it with their federal income tax return.
2. Creating an account through the official website or mobile app: Trump Accounts Official Website after submitting the election.
3. Managing the account and investments through online or the mobile app once the election is accepted

Withdrawals and Taxes

• Earnings grow tax-deferred while funds remain in the account
• At age 18, control of the account transfers to the child
• The basis is not taxable, but the earnings and other taxable portion are taxed as ordinary income when taken
• Early withdrawals may be subject to a 10% penalty unless an IRS exception applies
• After age 59½, the 10% penalty no longer applies, but withdrawals remain taxable

If you have further questions, please reach out directly to Tammy Tax Consulting & Co. in Lacey, WA at 360-489-1596