Parents may soon receive $1,000 for their child, thanks to a provision in President Donald Trump’s major bill signed into law last year.
So-called “Trump Accounts” will receive $1,000 for each child born between 2025 and 2028 if their parents set up an account. The initial money will be invested in the stock market by private firms and the child will have access to the funds when they turn 18.
Hill described Trump Accounts as a new type of IRA benefiting more than 14 million children expected to be born during that time period. The White House described investment accounts as a way to “enable the next generation to save” money for their future financial well-being.
Who qualifies for Trump Accounts?
Parents or guardians can open Trump accounts for any American child under the age of 18 who has a valid Social Security number. For children born after December 31, 2024 and before January 1, 2029, any account established in their name from the US Treasury will receive an initial deposit of $1,000.
Older children born before 2025 can still get a Trump account, but they won’t get the $1,000 from the government. A $6.25 billion gift from billionaires Michael and Susan Dell will potentially provide $250 in seed capital for children under 10 in zip codes with a median family income of $150,000 or less and who were born before 2025.
The account is fully in the child’s name, with parents or guardians serving as account administrators.
How do I get $1000 into my child’s Trump account?
Parents and guardians can choose to open Trump accounts for eligible children when they file their taxes in 2025 or through an online portal expected to open on July 5, 2026 at Trumpaccounts.gov.
According to Axiosparents will need to file Form 4547 to elect to set up a Trump account for the child. Beginning in May, the Treasury Department will “send information to the individual who chose to activate the account through the verification process and to complete the opening of the original Trump account.”
For children born during the calendar years of Trump’s second term, these accounts will automatically receive $1,000 upon establishment. The financial institution then invests the money in a diversified portfolio of low-cost index funds with an average fee of 0.1% that track the stock market.
How much money can I donate?
Parents can contribute up to $2,500 a year in pre-tax income, similar to retirement accounts. Employers can also make an annual contribution of up to $2,500 that will not affect the employees’ taxable income.
Annual contributions are limited to $5,000, but contributions from governments and charities do not count toward this amount.
How Much Money Can Trump Accounts Have?
For a child born in 2026, an account with $1,000 with no other investments could be worth $5,800 by age 18, according to the White House Council of Economic Advisers (CEA), based on average stock market returns. Accounts with additional contributions could be worth up to $303,800 within 18 years, CEA estimates.
With rare exceptions, children do not get access to money until they are 18 years old. The Associated Press notes that withdrawals from the accounts will be subject to taxes.
What about taxes?
USA Today reports that individual contributions to the accounts will not qualify for the annual gift tax exclusion because they are not considered “current interest” gifts (since they can be used years later). As a result, donors must file a gift tax return, or IRS Form 709for each post, whether it’s a minimum of $25 or a maximum of $5,000.
Amber Waldman, senior director of estates and gifts at RSM’s Washington national tax practice, told the publication that this will create a “significant compliance issue” because the most popular tax filing platforms, such as TurboTax, do not provide Form 709.
This is different from 529 savings plans, which are meant to be investment accounts for children to spend on college and further education. USA Today reports that the 529 was exempted by Congress “as an outright gift to such recipient that is not a future interest in the property.”
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