A new U.S. savings vehicle for children — informally known as the “Trump Account” — is beginning to attract attention among American families worldwide. For U.S. citizens living in Israel, this account offers a rare opportunity to start building long-term wealth for children from birth — with government funding and tax-deferred growth.
At the same time, dual U.S.–Israeli families must navigate two tax systems, making planning more nuanced than it first appears. In this article, we’ll focus on the $1,000 benefit available for young children with Social Security numbers. In the next installment, we’ll explore the pros and cons of adding extra funds from the family’s after-tax savings (spoiler: it’s usually not a good idea!).
But let’s start with the $1,000 seed accounts. Here, there’s no downside. Even with the restrictions, this represents money the child wouldn’t otherwise have — a true opportunity to build a financial foundation at no cost to the family.
What Is a Trump Account?
A Trump Account is a federally created tax-advantaged investment account for children under age 18.
Key features:
- Opened in the child’s name
- Earnings grow tax-deferred for U.S. purposes
- Converts into a retirement-style account at adulthood
- Parents, grandparents, and relatives may contribute up to $5,000 per year per child
- Certain children qualify for a $1,000 U.S. government seed deposit
The $1,000 Government Seed Deposit — How It Works
Children may receive a one-time $1,000 federal deposit if all of the following are met:
- Born during the eligible window (currently births from 2025–2028).
- The child has a valid U.S. Social Security Number.
- A parent or guardian makes the required election on a U.S. tax return.
- A Trump Account is opened in the child’s name.
The deposit is not taxable income and grows tax-deferred inside the account.
Investment Tracks Inside Trump Accounts
Permitted investments include:
- Broad U.S. stock market index funds
- Total-market or large-cap U.S. equity ETFs
Foreign funds, alternatives, sector funds, and crypto are not permitted.
How U.S. Citizens Living in Israel Can Obtain the $1,000 Trump Account Seed Deposit
For Americans living in Israel, the opportunity is very real — but the process is not automatic and requires deliberate action. Below are the three ways to obtain the $1,000 seed money and the important brokerage issues unique to expats.
Who Is Eligible?
Your child must:
- Be a U.S. citizen
- Have a valid Social Security number
- Be born between January 1 2025 and December 31 2028
- Have a Trump Account established through one of the methods below
There are no income limits.
Option 1 (Most Common)
File Your U.S. Tax Return and Attach Form 4547
This will be the default approach for most families.
When you file your U.S. tax return, attach Form 4547 – Trump Account Election to establish the account and request the $1,000 government contribution.
- Can be filed:
- Electronically (preferred)
- Or with a paper return
- This method works even if you normally owe zero U.S. tax.
Once processed, Treasury deposits the $1,000 directly into the newly created Trump Account.
Option 2
File Form 4547 as a Stand-Alone Form (No Tax Return)
If you are not required to file a U.S. tax return (for example, you have no income), you may submit Form 4547 by itself.
For U.S. citizens living in Israel, mail the form to:
Internal Revenue Service
Austin, TX Service Center
(International filings — same address used for Form 1040 from Israel)
This allows you to receive the $1,000 seed deposit without filing a full tax return.
Option 3
Register Online at TrumpAccounts.gov (No Tax Return Required)
Beginning mid-2026, parents will be able to open Trump Accounts online at:
This method will:
- Not require filing a tax return
- Allow direct online account establishment
However, the system will require identity verification, likely through ID.me or a similar platform.
⚠️ Expat warning:
ID verification can be very difficult without a U.S. address, U.S. phone number, or recent U.S. credit history. Many Americans in Israel encounter obstacles completing ID.me verification.
You Will Also Need a Brokerage Custodian
Opening the Trump Account with the IRS is only the first step. To actually invest the funds, the account must be held with a brokerage custodian.
This is where many Americans abroad get stuck:
- Many U.S. brokerages require U.S. residency or a U.S. address.
- Accounts are often frozen or rejected once a foreign address is disclosed.
Two firms that are generally reported to work with U.S. citizens living in Israel are:
- Charles Schwab
- Interactive Brokers
No endorsement is given or implied — policies change frequently, and you must confirm eligibility directly with the custodian before relying on any firm.
Which Option Is Best for Americans in Israel?
| Method | Practicality |
|---|---|
| Attach Form 4547 to your tax return | ⭐⭐⭐⭐⭐ Best |
| File Form 4547 stand-alone by mail | ⭐⭐⭐⭐ Good |
| Online at TrumpAccounts.gov | ⭐⭐⭐⭐ Good (if you can manage ID verification) |
Final Notes
- The $1,000 seed deposit is in addition to the Child Tax Credit.
- Parents and relatives may contribute up to $5,000 per year, but basis must be tracked carefully to avoid double taxation on withdrawal.
- Every child who is also an Israeli resident must comply with both U.S. and Israeli tax rules, and families should consult their Israeli CPA regarding potential “Teisha Gimel” treatment.
Disclaimer
This article is for educational purposes only and does not constitute tax, legal, or investment advice. Every family’s situation is different. You should consult with your U.S. and Israeli tax advisors before opening or funding any Trump Account.