The Trump Account - Free Money for Your New Baby

Brennan McCarthy, CFP®

If you’ve welcomed a baby or are expecting one soon, you’re eligible for a free $1,000 for your child from the government; but you need to take steps to claim it. These accounts were created under the One Big Beautiful Bill Act (OBBBA) of 2025, "Trump Accounts" were designed to give American children a head start on building wealth.

Here is everything you need to know about what they are, how they work, and why you should act now.

What is a Trump Account?

Think of a Trump Account as a "Starter IRA" for kids. It is a tax-advantaged investment account owned by the child but managed by a parent or guardian. Think of it like an IRA, but without the tax deduction for contributing to the account. The account grows tax-deferred, so you and your child will not be taxed on the capital gains or dividends and it doesn’t need to be tracked for tax purposes.

For children born between January 1, 2025, and December 31, 2028, the federal government will chip in a one-time $1,000 seed contribution. 

These accounts are designed to be simple, so the money is automatically invested in low-cost index funds that are entirely invested in the US economy.

A total of $5,000/year can be contributed to each account. With that said, accounts like 529s or UTMAs may be a better path for your child (depending on what you intend the money to be used for). The law is set up to allow employers to contribute up to $2,500/year towards your child’s account – I’m not sure I see this part of the law being widely adopted.

How to Get Started

The accounts are officially slated to "launch" on July 4, 2026, but if you file your taxes before signing up at the website (see #1 below), you may have to wait until you file your 2026 tax return before receiving the $1,000 contribution from the government.  

1. Go to TrumpAccounts.gov where the Treasury is currently building a dedicated portal at you will eventually be able to track the balance and manage investments. Go to the website and enter your email address to get updates.
2. File Your Taxes: You will likely claim the account and the $1,000 credit by making an "election" on your federal tax return (using the new IRS Form 4547).