Last fall, we introduced readers to Trump Accounts, a new type of investment account created by the One Big Beautiful Bill Act (“OBBBA”) to help children get an early start on building wealth. At the time, many of the implementation details were still being finalized and families could not yet open accounts.
That has now changed. The official program website, TrumpAccounts.gov, is live, the enrollment process has begun, and eligible families can now take steps to ensure their children receive the $1,000 federal contribution.
A Quick Refresher
Trump Accounts are investment accounts established for children and designed to encourage long-term saving and investing. Eligible children born between January 1, 2025 and December 31, 2028 can receive a one-time $1,000 contribution from the federal government.
Like a traditional IRA, Trump Accounts offer tax-deferred growth, meaning investment earnings compound without annual taxation while funds remain in the account. Current rules generally require assets to be invested in low-cost, broadly diversified U.S. stock index funds, keeping fees low and limiting speculation. While families can contribute additional funds over time (subject to annual limits), the most immediate planning opportunity is simply making sure eligible children receive the government’s seed contribution.
To qualify for the $1,000 contribution, a child generally must:
- Be born between January 1, 2025 and December 31, 2028
- Be a U.S. citizen
- Have a valid Social Security number
If your child meets these requirements, it is worth taking a few minutes to complete the enrollment process.
What Parents Need to Do
The signup process is surprisingly straightforward. Parents or legal guardians should visit TrumpAccounts.gov and follow the instructions to complete IRS Form 4547. You’ll be prompted to sign in (or create an account) using ID.me and provide basic information about your child, including their Social Security number, date of birth, and address.
Pro tip: If you don’t already have an ID.me account, it’s easiest to create one on your phone since you’ll need to photograph your driver’s license (or other government-issued ID) and verify your identity with a quick selfie.
Unlike opening a traditional brokerage account, completing Form 4547 establishes your child’s initial Trump Account through the U.S. Treasury’s program—you are not selecting your own custodian or investment firm. After submitting the form, you’ll be instructed to download the official Trump Accounts app and create your account. Families will then receive additional activation instructions as the program rolls out, with Treasury indicating that the first $1,000 seed contributions are expected to begin around July 4, 2026, coinciding with America’s 250th anniversary.
For a real-world perspective, I recently completed the process myself for our son, Gus (born January 14, 2026). From start to finish, the process took only a few minutes and was far simpler than I expected. If you’ve successfully navigated online banking, tax software, or a 529 plan application, you should have no trouble completing it. (I’m holding off on creating an account for our daughter, Evie, born November 17, 2023, since she isn’t eligible for the $1,000 seed contribution.)
Do You Need to Contribute Anything?
One of the most common questions we’ve received is whether parents must make their own contribution to receive the government’s $1,000 deposit. The answer is no. Eligible children can receive the federal contribution even if parents choose not to make additional deposits.
Contribution Limits
While no personal contribution is required to receive the government’s $1,000 seed deposit, families can add additional funds over time. Current rules allow total annual contributions of up to $5,000 per child per year from parents, grandparents, relatives, family friends, and other private contributors. The contribution limit is indexed for inflation and may increase over time.
Employers may also contribute to a child’s Trump Account as an employee benefit. Under current rules, employers can contribute up to $2,500 annually on behalf of an employee’s child, with those contributions counting toward the overall annual contribution limit.
For families fortunate enough to receive employer contributions, this can represent a meaningful additional source of savings and is worth investigating through your company’s benefits department.
What Could $1,000 Become?
It is easy to dismiss $1,000 as a relatively modest amount of money, but time is a powerful ally when it comes to investing. If a child received only the initial $1,000 government contribution and it compounded at 8% annually for 65 years, the account could grow to approximately $150,000 without a single additional contribution. While future returns are never guaranteed, the example highlights the tremendous value of giving investments decades to compound.
How Should Trump Accounts Fit Into Your Financial Plan?
For most families, our view remains largely unchanged from when we first wrote about Trump Accounts last year. Take the free money. If your child qualifies, there is little reason not to claim the $1,000 federal contribution.
Beyond that, whether additional contributions make sense depends on your family’s broader financial priorities. For many households, it may still be prudent to prioritize 529 plan funding, retirement savings, debt repayment, or other objectives. While Trump Accounts can be a valuable supplemental savings vehicle, 529 plans generally remain the more attractive option for education-focused savings due to their tax-free treatment of qualified withdrawals. Likewise, custodial accounts and Roth IRAs (once a child has earned income) may continue to play important roles as part of a well-rounded savings strategy.
In other words, don’t let the existence of a new account type cause you to abandon strategies that are already working well.
Final Thoughts
The biggest development over the past year is that Trump Accounts have moved from concept to reality. Families with eligible children can now begin the enrollment process and position themselves to receive the $1,000 federal contribution.
If you have a child born between 2025 and 2028, we encourage you to visit TrumpAccounts.gov and complete the required steps. Even if you never contribute another dollar, that initial $1,000 has decades to compound and could provide a meaningful head start toward your child’s future financial goals.
As always, if you’d like help determining how a Trump Account fits alongside your 529 plans and broader family wealth strategy, please don’t hesitate to reach out.
