Trump Accounts: New Form 4547, $1000 Initial Deposit, Eligibility, Contributions and Withdrawals, Investment Rules

This webinar will explain what tax practitioners and taxpayers need to know about the new Section 530A Trump Accounts created under the One Big Beautiful Bill Act. Our seasoned tax professional will cover eligibility and filing requirements for the initial $1,000 government contribution, as well as eligible contributions from parents, employers, and others; permitted withdrawals and penalties for early withdrawal; and investment requirements. He will also compare these accounts with other savings vehicles.

Although scheduled to begin in 2026, children born in 2025-2028 are entitled to a $1,000 federal government contribution. Parents, grandparents, and others can deposit up to $5,000 annually into a child's (under age 18 at year-end) account beginning in July 2026. There are specific investment requirements for Trump Accounts that must be met.

These accounts are intended to encourage saving for education costs, home ownership, and retirement. Withdrawals are permitted when the child turns 18. Alternatively, the account can function as a retirement account, subject to early withdrawal penalties if spent before age 59 ½. The nuances of these new accounts create significant tax considerations for taxpayers with children. Certainly, those with children who are eligible for the $1,000 contribution will want to file new Form 4547, Trump Account Election(s), to receive this free money. Others need to compare the benefits of these accounts with Section 529 plans, retirement contributions, and other savings opportunities.

Listen as our astute tax planning expert outlines the key requirements of Trump Accounts and analyzes the benefits and drawbacks of contributing to these accounts.