Key takeaways
- Children born from 2025 through 2028 can receive a one-time $1,000 Treasury deposit.
- Any U.S. child under 18 with a Social Security number can have an account.
- Families can contribute up to $5,000 a year, and employers can add up to $2,500 of that.
Trump Accounts, a new type of tax-advantaged investment account for children created by the 2025 tax law, began accepting contributions on July 4, 2026. The IRS has reported that parents signed up more than 4 million children, including more than 1 million covered by the $1,000 pilot program.
Who’s eligible
- Accounts: Any child under 18 who is a U.S. citizen with a Social Security number.
- $1,000 government deposit: Children born between Jan. 1, 2025, and Dec. 31, 2028. Kids born earlier can still have an account, but don’t get the deposit.
How to open one
Parents or guardians can elect to open an account by filing IRS Form 4547, which can be submitted with a tax return, or through the official online portal at trumpaccounts.gov. The same form requests the $1,000 pilot contribution for eligible children.
How the money is invested
Money in the accounts is invested in low-cost funds that track the U.S. stock market. Growth is tax-deferred.
Contribution limits
- Family and others: up to $5,000 per year total
- Employers: up to $2,500 per year, which counts toward the $5,000 limit
- Some companies and charities have pledged additional deposits for eligible children
When can the money be used?
Withdrawals are generally restricted until the child turns 18. After that, the account is treated much like a traditional IRA, and withdrawals are taxed as ordinary income, with potential penalties for early withdrawals that don’t meet an exception.
Should you contribute beyond the $1,000?
It depends on your goals:
- Saving for college? A 529 plan offers tax-free withdrawals for qualified education costs, and many states give a tax deduction.
- Retirement first? Make sure you’re getting your own 401(k) match and have an emergency fund before investing for your kids.
- Long-term investing for a child? A Trump Account or a custodial Roth IRA (if your teen has earned income) may fit.
Beware of scams
The Treasury has warned families about scams. Use only official government websites and never pay a fee to claim the $1,000 deposit.
WalletJolly may earn a commission from links on this page. Rates, prices and rules mentioned are current as of Oct. 28, 2026 and can change. This article is general information, not financial, tax, insurance or legal advice.
