SingerLewak Issues Federal Tax Alert: How Families Can Claim the Government Contribution Through New Trump Accounts

New tax-advantaged investment accounts for children begin in 2026, offering tax-deferred growth and a potential government contribution for eligible families

LOS ANGELES, CA, UNITED STATES, March 22, 2026 /EINPresswire.com/ -- National accounting and advisory firm SingerLewak LLP has issued a federal tax alert regarding Trump Accounts, a newly established tax-advantaged investment account designed to help families build long-term savings for children.

The accounts were created under recently enacted federal legislation and will be available for taxable years beginning after December 31, 2025. Under a limited federal pilot program, eligible children may receive a one-time $1,000 government contribution when the account is established, and the required election is filed with the IRS.

Tax professionals say the program is intended to encourage early investing while allowing assets to grow tax-deferred during a child’s early years.

“Programs that encourage families to start saving and investing early can have a powerful long-term financial impact,” said a tax partner with SingerLewak’s Tax Advisory Group. “These accounts provide a structured framework for long-term investment growth while giving families access to an initial government contribution that can help jump-start savings.”

Key Features of Trump Accounts

Trump Accounts function similarly to retirement investment vehicles but are established specifically for the benefit of a child.

Key provisions include:

• The account must be designated as a Trump Account when it is created.

• During the growth period (before the child turns 18), investments are limited to low-fee, broad-based U.S. equity index mutual funds or exchange-traded funds (ETFs).

• Annual contributions from non-government sources are limited to $5,000 per year, with adjustments for inflation beginning in 2027.

• Employer contributions may be made up to $2,500 per year, which counts toward the overall contribution limit.

• No withdrawals are permitted during the growth period except for specific rollovers or in the event of the beneficiary’s death.

• Only one Trump Account may be established per child.

Eligibility Requirements

To open a Trump Account, the following criteria must be met:

• The child must be under age 18 at the end of the calendar year in which the account is established.

• The child must have a Social Security Number issued before the account is opened.

• The account may be established by a legal guardian, parent, adult sibling, or grandparent, in that order of priority.

Eligibility for the $1,000 Government Contribution

Families may qualify for the pilot program contribution if the following requirements are met:

• The child must be born between January 1, 2025, and December 31, 2028.

• The child must be a U.S. citizen with a Social Security Number issued before the election is filed.

• Only one $1,000 contribution is permitted per eligible child.

• The person making the election must reasonably expect the child to be their qualifying dependent during the election year.

How Families Can Claim the $1,000 Contribution

Families must complete the following steps to claim the government contribution:

Establish a Trump Account by filing IRS Form 4547 (Trump Account Election(s)).

Indicate on the form that the $1,000 pilot program contribution election is being made.

Submit the form electronically or by mail to the IRS.

After the election is processed, instructions will be provided to activate the account.

The government contribution will be deposited as soon as practicable after the account is confirmed, but not before July 4, 2026.

Additional Program Notes

• There are no income restrictions for establishing a Trump Account or receiving the government contribution.

• Contributions are not tax-deductible, but earnings grow tax deferred.

• After age 18, the account is treated similarly to a traditional IRA for tax purposes.

Tax professionals recommend families speak with a qualified tax advisor to determine whether establishing a Trump Account aligns with their long-term financial planning strategies.

About SingerLewak

SingerLewak LLP is a nationally recognized accounting and advisory firm providing tax, audit, consulting, and business advisory services to organizations, entrepreneurs, and high-net-worth individuals throughout the United States.

Mike Mondelli
SingerLewak LLP
+1 949-623-0528
email us here

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