Born in 2025 or Later? Your Child May Have $1,000 Waiting for Them
A new federal savings account for kids, called a Trump Account, comes with a $1,000 starter deposit for eligible babies. Here is who qualifies, how to claim it, and how to avoid the scams already circulating.
Most families I talk to in this community did not start with a head start. No trust fund, no brokerage account opened at birth, no grandparent who knew what an index fund was. That is exactly why this matters. The government is now putting $1,000 into an investment account for eligible newborns, and the only thing standing between your child and that money is a form most parents have never heard of. The money does not claim itself. Information is the whole difference here, and it is free.
What a Trump Account Actually Is
Think of it as a starter investment account that works a lot like a traditional IRA for kids. The funds must be held in a fund that tracks a qualified index of primarily U.S. companies, with yearly fees of 0.1% or less. Families, employers, and charities can add money, up to a combined $5,000 a year from parents and employers. Once the child turns 18, the account follows traditional IRA-style rules, which means withdrawals are taxed as ordinary income, with a 10% penalty before age 59 and a half unless an exception applies. Exceptions include qualified education costs and a first home purchase, up to $10,000.
Who Qualifies for the $1,000
If you have more than one child, only the ones born in that window get the starter deposit. If your child was born earlier, you may still be able to open an account and contribute, but the $1,000 is limited to births in the window. Because rules continue to be clarified, check TrumpAccounts.gov for the latest before you act.
How to Claim It in Three Steps
Step 1: File IRS Form 4547, the Trump Account election. You can file it with your tax return or register through the official site. Step 2: Look for an email from the Treasury confirming your election and follow the instructions inside. Step 3: Use the official Trump Accounts app or website to see your account. Your Black-owned tax preparer can attach Form 4547 to your return and make sure nothing gets missed.
How to Make the Account Work Harder
Some employers have pledged extra contributions for employees’ children, and up to $2,500 of employer contributions per employee can be excluded from income through a cafeteria plan. Family and friends contribute with after-tax dollars. This account is not the only tool. A 529 plan has different rules for education spending, and a regular savings or brokerage account has no age lock. A fee-only Black financial advisor can help you compare them for your family’s goals.
Trump Account Claim Checklist
Growth Illustration to Age 18
An illustration only. Markets go up and down, and nothing is guaranteed.
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Find a Black Financial AdvisorFrequently Asked Questions
Who gets the $1,000 Trump Account deposit?
Children born from January 1, 2025 through December 31, 2028 who are under 18, U.S. citizens, and have a valid Social Security number. A parent, guardian, grandparent, or adult sibling files the election using IRS Form 4547.
How do I open a Trump Account for my child?
File IRS Form 4547 with your tax return or through the official Trump Accounts site, watch for a confirmation email from Treasury, then activate the account through the official app or TrumpAccounts.gov. Opening the account costs nothing.
How much can I put in a Trump Account each year?
Parents and employers can contribute a combined $5,000 per year, indexed for inflation. Family and friends contribute after-tax dollars. Charitable and government contributions are not subject to that limit.
When can the money be withdrawn?
Not until the child turns 18. After that, the account follows traditional IRA-style rules: withdrawals are taxed as ordinary income, and a 10% penalty applies before age 59 and a half unless an exception, such as qualified education or a first home purchase up to $10,000, applies.
Is the Trump Account $1,000 deposit a scam?
The program is real, but scammers are using it. Treasury says it will not contact parents by text or phone about activation. Only use TrumpAccounts.gov and the official app, and never pay a fee or share a Social Security number with someone who contacts you first.
This article is educational information, not tax or investment advice. Program details can change. Confirm current rules at TrumpAccounts.gov or with a licensed tax or financial professional.