The One Big Beautiful Bill Act created Trump accounts, a new type of tax-deferred investment account, under IRC § 530A. Trump accounts are structured like traditional individual retirement accounts, but with special rules for contributions, investments, distributions, and reporting.

Accounts may only be opened for a child under 18 and are intended to encourage long-term savings. Trump accounts will transition into traditional IRAs on January 1 of the year the accountholder turns 18. From that point, normal rules for traditional IRAs will apply.

Parents, guardians, and other individuals seeking to establish a Trump account for an eligible child can do so by submitting Form 4547, Trump Account Election(s). The IRS said the form can be submitted with a parent’s or guardian’s tax return or through that person’s IRS Individual Account.

To dig deeper, visit the original article on the Thomson Reuters blog.