IRS Limits Trump Accounts to 1 per Child, Tightens Grandparent Access to $1,000 Seed Money
Updated
Updated · Serving Those Who Serve · May 14
IRS Limits Trump Accounts to 1 per Child, Tightens Grandparent Access to $1,000 Seed Money
3 articles · Updated · Serving Those Who Serve · May 14
$1,000 in federal seed money can be claimed by a grandparent only for a grandchild born from 2025 through 2028 who is also the grandparent’s tax dependent.
For children born before Jan. 1, 2025, the proposed IRS rules put grandparents last in line to open a Trump Account—behind a parent, legal guardian and adult sibling.
Grandparents who open those pre-2025 accounts must certify under penalty of perjury on Form 4547 that they are authorized and that no other eligible person is “available.”
The proposal does not define “available,” creating uncertainty over whether a grandparent’s election could be invalid if a parent or guardian later proves eligible.
Trump Accounts, created by the 2025 One Big Beautiful Bill Act and expected to start July 4, 2026, allow only one account per child under 18.
With its strict rules, is a Trump Account a better way to save for a child's future than a 529 plan?
How can grandparents safely open a Trump Account without risking perjury over the vague 'unavailable' parent rule?
Will your contribution to a child's Trump Account create an unexpected gift tax problem for your estate?