When Congress passed, and President Trump signed, the budget reconciliation bill H.R. 1 (commonly referred to as the “One Big Beautiful Bill Act”), they established a new investment vehicle: Trump Accounts. Though frequently thought about only in connection with their most widely-publicized component \u2013 a $1,000 pilot contribution by the federal government \u2013 Trump Accounts are many-legged beasts. To take advantage of the \u201cfree money\u201d pilot contribution from the government and the jump start it can provide to a child\u2019s savings, it is crucial to become familiar with Trump Accounts\u2019 many legs and pitfalls.<\/p>\n
First Leg: Establishing the Account<\/strong><\/p>\n Section 530A of the Internal Revenue Code (the \u201cCode\u201d) allows an authorized individual \u2013 a parent, legal guardian, adult sibling, or grandparent \u2013 to file IRS Form 4547. The Form serves as an election to establish a Trump Account for a qualified individual. In order to qualify, the individual must not have attained age 18 by the end of the calendar year in which the election is made and must have a Social Security number issued before the date of the election.<\/p>\n