URGENT UPDATE: Starting in 2025, parents can claim $1,000 for every child born through 2028 thanks to the newly introduced “Trump Accounts.” This initiative, part of a significant bill signed into law last year by former President Donald Trump, is designed to provide financial support and investment growth for millions of American children.
This groundbreaking program will automatically credit eligible accounts with $1,000 from the U.S. Treasury for babies born between December 31, 2024, and January 1, 2029. Parents must open an account for their child to access these funds when they turn 18. The current estimate suggests that more than 14 million children will benefit from this initiative, making it a pivotal moment for family financial planning.
Parents or guardians can set up these accounts for any child under 18 with a valid Social Security number. Notably, children born before 2025 can still have a Trump Account, but they will not receive the initial government deposit. Additionally, a substantial donation of $6.25 billion from billionaires Michael and Susan Dell will potentially provide $250 in seed money for children under ten who come from families earning less than a median income of $150,000.
How can parents access this benefit? Parents can open Trump Accounts either when filing their 2025 taxes or through an online portal set to launch on July 5, 2026, at trumpaccounts.gov. To establish the account, they will need to file IRS Form 4547. The Treasury Department will then guide parents through an authentication process to activate the account.
Once funded, the initial $1,000 will be invested in a diversified portfolio of low-cost index funds, which typically carry an average fee of just 0.1%. For a child born in 2026, this investment could grow to approximately $5,800 by age 18 based on average stock market returns. If parents contribute the maximum allowable amount of $2,500 each year, the account may be worth as much as $303,800 by the time the child reaches adulthood.
However, parents should be aware of the potential tax implications. Contributions to Trump Accounts will not qualify for the gift tax annual exclusion, meaning donors must file a gift tax return, or IRS Form 709, for each contribution made. This could lead to significant tax compliance challenges, as many popular tax filing platforms do not currently support this form.
The initiative is not just about financial benefits; it aims to empower children from an early age, giving them a head start in saving for their future. The White House emphasizes that Trump Accounts represent a crucial investment in the financial well-being of the next generation, helping to ensure that children have the resources they need to succeed.
As parents prepare for this major change, the urgency to understand the requirements and benefits of these accounts cannot be overstated. Parents should stay informed about the upcoming portal launch and prepare to take action when it opens. The promise of financial support for the youngest Americans is a development that many families will want to leverage for their children’s future success.
For further updates, follow developments closely as 2025 approaches. The Trump Accounts initiative is expected to reshape how families plan for their children’s futures, making it a topic of urgent interest for many.
