01/28/2026
If your baby was born in 2025, make sure you apply for your child’s Trump Account and take advantage of this benefit.
Trump Accounts” are a new type of government-related savings/investment account for children that were created by recent federal legislation. They’re designed to give a financial boost to newborns and children, similar in some ways to a long-term savings or investment account.
Here’s how they work for a newborn:
🧒 1. Automatic $1,000 seed money
If your baby is born between January 1, 2025 and December 31, 2028, the federal government will seed a Trump Account with $1,000 once the account is opened and a child has a Social Security number.
📅 2. Who’s eligible
The child must be a U.S. citizen (with a valid Social Security number).
Parents or guardians normally open the account on the child’s behalf.
💸 3. Contributions
Parents, family, friends, or others can contribute money to the account — up to $5,000 per year per child.
Employers can also contribute (up to $2,500 in some cases).
📈 4. How money grows
The money in the account is invested in stock market index funds (like a diversified U.S. stock index). It’s not a simple savings account — it’s more like a long-term investment that can grow over time.
Growth is tax-deferred, meaning you don’t pay taxes each year as the money grows, but taxes apply when funds are taken out.
🏦 5. When the child can use the money
Trump Accounts are not meant for immediate expenses. Typically, the child can’t access the funds until adulthood (usually at least age 18).
After age 18, the account can be used for things like:
College or education
Buying a first home
Starting a business
— but rules vary and tax treatment depends on how the money is used.
📄 6. How to open one
Parents or guardians usually file a specific IRS form (Form 4547) or use an online system to activate the account so the $1,000 seed is deposited.
📌 Key things to keep in mind
It’s not immediate cash that you can spend right now — it’s long-term savings/investment.
The seed deposit is free money you don’t pay back, but the account works best if you keep contributing and let it grow over many years.
Trump Accounts are different from 529 education plans or IRAs, and you can use both.
If you want, I can explain step-by-step how to open one and what documents you need to do it.
