URGENT UPDATE: Starting in 2025, parents can secure $1,000 for their newborns through a new initiative called “Trump Accounts,” signed into law by former President Donald Trump. This groundbreaking program aims to provide financial support for children born between 2025 and 2028, allowing families to set up investment accounts that will grow over time.
The U.S. Treasury will deposit an initial $1,000 into these accounts for each eligible child, which parents can access when their child turns 18. This initiative could benefit over 14 million children expected to be born during this period, giving families a significant financial head start.
Parents or guardians can open a Trump Account for any American child under 18 who has a valid Social Security number. Accounts can be set up for infants born after December 31, 2024, and before January 1, 2029. Although children born before 2025 are also eligible, they will not receive the initial government contribution.
Additionally, a $6.25 billion donation from billionaires Michael and Susan Dell will provide up to $250 in seed money for children aged 10 and under, specifically in areas with a median family income of $150,000 or less.
How to Claim Your Child’s $1,000
Parents can open Trump Accounts when filing their 2025 taxes or via an online portal launching on July 5, 2026, at trumpaccounts.gov. To make the election for their child’s account, parents will need to file Form 4547. In May, the Treasury will send detailed instructions to those who elect to establish an account, guiding them through the activation process.
Once set up, these accounts will automatically receive the $1,000 deposit. The funds will be invested in a diversified portfolio of low-cost index funds, with fees averaging just 0.1%. This means that for a baby born in 2026, the initial $1,000 could grow to approximately $5,800 by age 18, based on average stock market returns. With additional contributions, the account value could soar to as much as $303,800.
Contribution Limits
Parents can contribute up to $2,500 annually in pretax income, similar to retirement accounts. Employers are allowed to match this with an additional $2,500 contribution, ensuring families can maximize their savings without impacting taxable income. Total yearly contributions are capped at $5,000, but any contributions from governments and charities do not count toward this limit.
Tax Implications
Contributions to Trump Accounts will not qualify for the gift tax annual exclusion, as they are not considered gifts of “present interest.” Therefore, donors must file a gift tax return, or IRS Form 709, for every contribution, whether it’s the minimum of $25 or the maximum of $5,000. This requirement could create significant compliance issues, as many popular tax filing platforms, like TurboTax, do not support Form 709.
Unlike 529 savings plans, designed for educational expenses, Trump Accounts offer a different pathway to financial growth for children.
Next Steps
With the launch of Trump Accounts just around the corner, families are encouraged to prepare for this unique opportunity to invest in their children’s futures. Stay tuned for more updates and ensure you are ready to take advantage of this promising initiative.
As this program develops, parents are urged to share this information widely to help others benefit from the financial opportunities ahead.
