How to Open a Trump Account for Baby: A Step-by-Step Guide

As a mom of three and personal-finance writer, I know how overwhelming it can be to wrap your head around saving now for your children’s future—and the launch of Trump Accounts adds a whole new layer of information overload to the mix.

But don’t let the government jargon stress you out. This is one homework assignment that’s easier than you think, and it comes with a financial head start for baby you won’t want to miss.

If you welcomed a baby in 2025 or 2026, or have a little one on the way, the federal government may want to give them $1,000—no strings attached. Under the One Big Beautiful Bill Act, signed into law on July 4, 2025, there’s a new type of investment option called a Trump Account for children under 18, designed to help families build wealth for the next generation.

Here’s the best part: For babies born between 2025 and 2028, Uncle Sam will deposit a one-time $1,000 seed contribution directly into their fund. The catch? This account doesn’t open automatically—and with contributions opening up on July 4, 2026, you’ll want to be right on top of it!

With millions of families still unfamiliar with how these accounts work, we’ve done the heavy lifting for you. Read on to learn the ins and outs of Trump Accounts for kids, who’s eligible, exactly how to open a Trump Account for a baby and how to claim baby’s $1,000 seed money.

Key Takeaways

• What is a Trump Account? Trump Accounts for kids are a new tax-advantaged investment account for US citizens under the age of 18.
• Who is eligible for seed money? Children born between January 1, 2025, and December 31, 2028, are eligible for a one-time $1,000 government seed deposit.
• How to open a Trump account: Parents can open an account for their child by filing IRS Form 4547 or using the official online portal.
• How much can you contribute? The annual contribution limit is $5,000 per child from all sources combined (not counting the government seed money or charitable contributions).
• How does money accrue? Money is invested in low-cost US equity index funds and locked until your child turns 18—at which point the account is treated like a traditional IRA.

What Are Trump Accounts for Kids?

A Trump Account—or a 530A account—is a tax-deferred investment account created specifically for children. It was established under the One Big Beautiful Bill Act (OBBBA) and is a type of traditional Individual Retirement Account (IRA) but with one key difference: a child doesn’t need to have earned income to qualify. That means you can start building wealth for your child from the moment they’re born.

“Trump Accounts are investment accounts opened in a child’s name, managed by a parent or guardian, that allow money to grow tax-deferred from birth,” explains Erin Moriarity of Erin Talks Money. “What makes them unique is that they give children access to a tax-advantaged investing vehicle before they’ve any earned income, which means compounding has more time to work in their favor.”

Ashley Feinstein Gerstley, CFP, of The Fiscal Femme puts it simply: “A Trump Account is basically a long-term investment account for your child that resembles a traditional IRA in many ways. The headline is that the government will fund it with a one-time $1,000 seed contribution for children who are US citizens born between 2025 and 2028, and no contributions are required.”

What can the money be used for?

After the growth period ends and your child takes control of their account at 18, it is treated more like a traditional IRA. They can access funds for qualifying expenses, including certain education costs or a first-home purchase (up to $10,000). But they’ll pay ordinary income tax on withdrawals and—if taken before age 59-and-a-half without a qualifying reason—they’ll owe a 10 percent early withdrawal penalty. After that age, the money can be used for any purpose, although there’s still income tax on withdrawals.

Nuances aside, real parents are excited about the possibilities. “I think it’s brilliant, it’ll be life changing for an entire generation,” says Reddit user Rare_Entertainment. “The beauty of it is, it’s all for the children, regardless of the parents’ income. Everyone would have money for college, a down payment for a home, a nest egg or safety net for less fortunate circumstances—or millions if they sit on it until retirement. And kids will have an incentive to learn about finances, saving, and making financial decisions.”

How Can I Open a Trump Account for Baby?

Opening a Trump Account for baby is a pretty streamlined process. Here’s how to do it, step by step:

Step 1: See if your family qualifies

Any child under age 18 with a Social Security number is eligible to have a Trump Account. There are no income requirements for parents or guardians. Each child may have only one account. If your child was born between January 1, 2025, and December 31, 2028, and is a US citizen, they’re also eligible for the $1,000 government seed contribution—but you must actively file to claim it.

Step 2: Gather the necessary paperwork

Before filing, round up—or make sure you know—the following for your child: Social Security number (SSN)

US citizenship documentation (for the seed contribution) You’ll also need your own Social Security number and contact information as the authorized parent or guardian opening the account.

Step 3: Submit IRS form 4547

The official way to open a Trump Account is by filing IRS Form 4547 (Trump Account Election). This one-page form handles both the account election and the request for the $1,000 pilot program contribution for eligible children. You can file it with your annual tax return or submit it separately through the IRS online portal.

A form must be submitted no later than December 31 of the year your child turns 17. However, if you want to make contributions for a given calendar year, you must file by December 31 of that year—unlike IRAs, there’s no prior-year contribution window for Trump Accounts.

Step 4: Complete activation on the app or portal

Once the election is made, you can manage the account through the official Trump Accounts app, available on the Apple App store or Google Play. The app was developed by Bank of New York Mellon and Robinhood in partnership with the U.S. Treasury and is the primary platform for managing the account after it’s opened. You can also access the account through trumpaccounts.gov.

If your child qualifies for the $1,000 seed deposit, you’ll be able to track its status in the app after filing Form 4547.

Step 5: Set up your funding method

Contributions can begin as of July 4, 2026. To start contributing, link a bank account or payment method through the app or portal. The combined annual contribution limit from all individual sources (parents, grandparents, other family members, etc.) is $5,000 per year. (The government seed contribution and qualified charitable contributions don’t count toward this limit.)

Who Is Eligible for a Trump Account?

Any child who meets the following criteria is eligible to have a Trump Account opened on their behalf:

• US citizen under age 18
• Has a Social Security number
• Hasn’t already had a Trump Account election made on their behalf
• There are no income limits for parents or guardians, and there’s no earned income requirement for the child.

Who is eligible for the $1,000 government deposit?

The $1,000 pilot program contribution is available to children who:

• Are US citizens with a birthdate between January 1, 2025, and December 31, 2028
• Haven’t had a prior pilot program contribution election made on their behalf

Should I Open a Trump Account for My Child?

The short answer for families with a baby born between 2025 and 2028: Yes, claim the $1,000. “It’s free money so even with limits and taxes, it’s better to have it than not,” says Gerstley.

Moriarity agrees: “If your child is eligible for the $1,000 seed contribution, my advice is to open the account and capture it. That’s free money, and turning it down would be leaving a real opportunity on the table.”

Parents on Reddit forums agree: “There’s literally no downside to opening it and just letting the $1,000 grow on its own,” says user PotatosDad. “There are certainly better ways for you to invest your own money for your child, so I would just open this account and then let it sit in an Index fund.”

The account’s value beyond the seed money really depends on your goals and savings capacity. Families who want to give their child a long-term investing head start, and who have savings capacity beyond education funding, benefit the most. The account allows compounding to begin at birth—something tools like a Roth IRA cannot offer because they require earned income.

“The real power of the account comes from consistent annual contributions, not just the $1,000 seed money,” notes Moriarity. "Families who can only rely on that initial deposit will see far less growth than families who can max out contributions every year.”

How Do Trump Accounts Work?

Money in a Trump Account is required by law to be invested in low-cost US equity index funds or exchange-traded funds (ETFs). The government caps management fees at 0.10 percent annually. During the growth period—from birth through December 31 of the year before the child turns 18—distributions are generally not allowed and investments are restricted to these index fund options.

How much money will accumulate over time?

The amount that grows depends on how much is contributed and for how long. Here are some projections based on a 7 to 8 percent average annual return:

If you only claim the $1,000 seed and never contribute another dollar:.

• At age 18: approximately $4,000 to $6,000
• At age 40: approximately $25,000 to $35,000
• At age 60: approximately $80,000 to $100,000

As Moriarity explains: “At an 8% average annual return, that single $1,000 deposit grows to roughly $4,000 by the time the child turns 18. And if they simply leave it invested through adulthood, by age 60 that original $1,000 seed could be worth close to $100,000, without a single additional dollar ever contributed. That’s the power of time and compounding.”

If you max out the $5,000 annual limit every year from birth to age 18:

• Total contributions: $90,000
• Estimated value at 18 (at 7 percent return): approximately $170,000 to $190,000
• Estimated value at 60 (if untouched after 18, at 7 percent): over $1 million

And then, of course, there’s everything in between these two scenarios. Contributing what you can, when you can, is what helps to build real wealth over time.

Who Can Contribute to Baby’s Trump Account?

Anyone can contribute to a child’s Trump Account, including:

• Parents and legal guardians
• Grandparents and other relatives
• Family friends
• The child themselves (once they’re old enough)
• Employers
• State or local governments and 501©(3) nonprofits (contributions from these sources don’t count toward the annual limit)

You must be a child’s legal parent or guardian to open the account, though once it’s open, contributions from others are accepted.

The combined annual limit from all individual contributors is $5,000 per year per child. This limit is indexed for inflation after 2027. In other words, the cap might increase in the future.

How much can employers contribute?

Employers can contribute up to $2,500 per year to an employee’s Trump Account or the Trump Account of a dependent. Employer contributions count toward the $5,000 annual limit and are excluded from the employee’s taxable income, meaning it is a pre-tax benefit, similar to employer 401(k) matching.

This is a newer benefit, and many employers haven’t implemented it yet. To ask yours about it, a simple approach is to send a note to your HR team explaining that Trump Accounts are an IRS-recognized benefit under the OBBBA and asking whether the company has plans to offer employer matching. Framing it alongside the 401(k) discussion can help employers understand where it fits.

How are Trump Accounts taxed?

Trump Accounts have a layered tax structure that’s important to understand:

• Individual (after-tax) contributions: Money contributed by parents, grandparents and other individuals goes in with after-tax dollars. When the child withdraws that original principal, it’s not taxed again. However, any investment earnings on those contributions are taxed as ordinary income at withdrawal.
• Government seed and employer contributions: These go in pre-tax. When the child withdraws this money (and its earnings), they’ll owe ordinary income tax at their rate in the year of withdrawal.
• At age 18: The account acts more like a standard IRA. This triggers a tax bill on the growth. “If a parent contributes $4,000 after-tax, the government adds $1,000 and the total grows to $40,000 over time, only that original $4,000 comes out tax-free,” Gerstley explains. “There’s a benefit over a regular brokerage account in that you’re not paying capital gains tax on your investment gains.”
• Early withdrawal taxes: Withdrawals before age 59-and-a-half are subject to ordinary income taxes. They’ll also trigger a 10 percent early withdrawal penalty, unless a qualifying exception applies (education, first-home purchase up to $10,000, etc.).

Important Dates and Deadlines to Know

Mark your calendars for:

• July 4, 2026: Contributions officially open; Trump Accounts app launches
• December 31 annually: Deadline for contributions for the calendar year (no prior-year window)
• December 31 of the year the child turns 17: Deadline to file Form 4547 and make account election

To Sum It Up

Trump Accounts are a new, government-backed investment option that give families a way to start building wealth for their children from birth—without an earned income requirement. What’s more, it may come with a free $1,000 head start from the federal government. To get started, visit https://trumpaccounts.gov/.

How We Developed This Article

When you’re welcoming a new baby, figuring out how to plan for their future financial success is a whole new level of adulting unlocked. To help break down the noise about Trump Accounts, we consulted current IRS guidance, proposed regulations from the U.S. Treasury Department and analysis from multiple financial institutions. We also spoke with two independent financial experts: Erin Moriarity of Erin Talks Money and Ashley Gerstley, CFP, of The Fiscal Femme, both of whom provided commentary based on their review of the OBBBA legislation and IRS guidance. We then scoured social media and Reddit forums for real parent perspectives. Finally, this article was fact-checked and reviewed by Beth Braverman an independent award-winning finance journalist.

About the author: Sarah Brooks is a financial writer and editor with more than a decade of experience creating personal finance content for leading publications and brands, including SoFi, LendingTree, FinanceBuzz and GOBankingRates. She specializes in making complex financial topics easy to understand, helping readers make smarter decisions about saving, investing, borrowing and retirement planning. Sarah holds a BS in finance from Arizona State University and lives in Tennessee with her three daughters.

The Knot Worldwide, Inc. and its affiliates do not provide tax, legal, financial, accounting or similar advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, financial, accounting or similar advice. You should consult your own advisers before engaging in any transaction.