Grandparents Should Be Careful When Opening Trump Accounts for Grandkids

Taxpayers now have a new option when it comes to saving to help children and grandchildren: OBBB Trump accounts. Roughly five million kids have already been signed up for Trump accounts. While grandparents may be entitled to contribute to Trump accounts for grandkids, they don't always have the authority to open those accounts. The rules are new--and many aspects are less than clear. If the grandchild was born on or after January 1, 2025, the grandparent can only make the election to claim the $1,000 federal contribution if the child is the grandparent's dependent. If the grandchild was born before that date, the account can be opened by the child's parent, legal guardian or adult sibling. A grandparent can only open the account if none of these parties are available to open the account (it's unclear what it means to be available to open the account). It's therefore advisable for grandparents to exercise caution when opening the account via the Form 4547 or the TrumpAccounts.gov website. For more information on savings options for children, visit Tax Facts Online. Read More: Link to Q3713.01.