URGENT UPDATE: Parents can soon claim $1,000 for every newborn child, as part of a groundbreaking provision in former President Donald Trump‘s recent legislation. This initiative, dubbed “Trump Accounts,” is set to roll out for babies born between January 1, 2025 and December 31, 2028, providing a vital financial boost for families.
The U.S. Treasury will deposit $1,000 into accounts for eligible children once parents open an account. These accounts will be managed by private firms, investing the funds in the stock market to grow over time. Children can access this money when they turn 18 years old. This initiative is expected to impact over 14 million children, offering a promising start to their financial futures.
WHO QUALIFIES? Any child born within the specified dates and holding a valid Social Security number is eligible for a Trump Account. Parents or guardians of children under 18 can easily set up these accounts. Notably, children born before 2025 won’t receive the initial $1,000, but they can still have an account established.
Adding to the initiative, billionaires Michael and Susan Dell are contributing $6.25 billion, potentially providing an additional $250 in seed money for children under 10 in lower-income ZIP codes. This unique structure empowers parents to invest in their child’s future.
WHAT’S NEXT? Parents can open Trump Accounts during their 2025 tax filings or via an online portal launching on July 5, 2026, at trumpaccounts.gov. To benefit, parents must file Form 4547 to establish the account. Starting in May, the Treasury will send activation information to those who elect to create an account.
These accounts are more than just savings; they are a way to secure a financial future. For instance, a baby born in 2026 could see their account grow to approximately $5,800 by age 18 without any additional contributions, thanks to average stock market returns. With annual contributions, the account could potentially be worth an astonishing $303,800 upon maturity.
TAX IMPLICATIONS: Contributions to Trump Accounts will not fall under the annual gift tax exclusion, as they are not considered immediate gifts. Parents must file IRS Form 709 for each contribution, which may complicate tax filing for many families. This contrasts significantly with established plans like 529 savings accounts, which allow for easier gifting options.
As excitement builds around this initiative, parents are urged to stay informed and take action to secure these funds for their children. The opportunity to provide a financial head start is unprecedented, and families should be ready to navigate the process as details continue to unfold.
For more information and updates, parents can monitor resources at trumpaccounts.gov and consult financial advisors to maximize this opportunity. Act now to ensure your child’s financial future is secured!
