On March 31, 2026, the IRS announced (IR-2026-42) that more than 4 million children have been signed up for Trump Accounts, with over 1 million of those children covered by the program’s $1,000 pilot contribution. The milestone marks one of the fastest rollouts of a new federal savings vehicle in recent memory — and it has direct implications for self-employed parents and small business owners.

What Is a Trump Account?

Trump Accounts are tax-advantaged individual retirement accounts for minors, established under the One, Big, Beautiful Bill signed into law on July 4, 2025. They are designed to give every American child a head start on long-term savings, with contributions growing tax-deferred until adulthood.

Parents, guardians, and other authorized individuals can request that an account be created for an eligible child as part of the family’s annual tax filing.

Who Is Eligible

To Open an Account

  • The child must not have turned 18 before the end of the year in which the election is made
  • The child must have a valid Social Security number

To Receive the $1,000 Federal Pilot Contribution

  • Child must be born between January 1, 2025 and December 31, 2028
  • Must be a U.S. citizen with a valid Social Security number

The $1,000 pilot contribution is funded by the federal government — meaning eligible families don’t need to put up their own money to get the account started.

The Numbers So Far

  • 4+ million children enrolled in Trump Accounts
  • 1+ million children covered by the $1,000 pilot contribution
  • Contributions to existing accounts can begin July 4, 2026 — the one-year anniversary of the bill’s signing

How to Sign Up

Taxpayers request an account by filing Form 4547 (Trump Account Election) with their 2025 tax return. The election handles both the account creation and the pilot contribution claim in a single step.

If you’ve already filed your 2025 return without the election, your tax professional can help you determine whether an amended return makes sense — especially if your child qualifies for the $1,000 pilot contribution.

Why This Matters for Schedule C Filers

If you’re self-employed and have a child — or are planning to — there are three reasons to pay attention:

1. The $1,000 is essentially free money

For children born between 2025 and 2028, the federal government funds the initial contribution. There is no income test mentioned in the IRS announcement, which means most self-employed parents qualify regardless of how their Schedule C performed last year.

2. The election happens on your tax return

Trump Accounts aren’t opened at a bank — they’re claimed through your federal return. That makes clean, on-time filing even more important. If you typically rush your Schedule C in early April, this is one more reason to get organized earlier.

3. Future business contribution rules are coming

The IRS announcement notes that business entities may eventually be able to contribute to eligible employees’ Trump Accounts, subject to annual limits. For sole proprietors who employ family members or a small team, this could become a meaningful new benefit to offer — similar in spirit to a SEP-IRA, but aimed at the next generation.

What to Do Now

  1. Check eligibility for any children in your household, especially those born in 2025 or later
  2. Talk to your tax preparer about adding Form 4547 to your 2025 return — or amending if you’ve already filed
  3. Mark July 4, 2026 on your calendar as the date contributions to existing accounts can begin
  4. Watch for guidance on employer contributions, which could open up new tax-advantaged ways to support your team

At Simple-C, we believe small business owners shouldn’t have to choose between running their business and taking advantage of every tax benefit they’re entitled to. Trump Accounts are a reminder that the tax code keeps adding new tools — and the families who claim them are usually the ones with their books in order.

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