- Trump accounts (savings plans for children) will open in 2026 with a one-time federal contribution of $1,000 for children born from 2025 through 2028.
- Families must file IRS Form 4547 to set up the account and claim the child benefit.
- The $6.25 billion philanthropic commitment from Michael and Susan Dell will add an additional $250 to up to 25 million eligible children living in ZIP codes with a median household income of less than $150,000.
The Treasury is set to launch the country’s newest child-focused savings programme, called… Trump accounts.
Starting in 2025, the federal government will introduce a $1000 “baby bonus” Through Trump’s newly created accounts.
These accounts were created under the One Big Beautiful Bill Act (OBBBA). The Treasury Department will open these accounts once families submit the required election form, making the benefit available to every US citizen born between 2025 and 2028.
Interest in the program increased this week after President Donald J. Trump joined philanthropists Michael and Susan Dell at the White House. To announce a charitable commitment of $6.25 billion. This gift will provide Additional $250 For up to 25 million eligible children living in zip codes where the median family income is less than $150,000. The contribution is expected to significantly expand the early balances of Trump’s accounts even before families begin contributing their own money.
But many parents ask the same question: How can we actually claim the $1,000 baby bonus for new Trump accounts?
What is a Trump account (and what it isn’t)
Trump Accounts are designed for children under 18 and serve as long-term investment vehicles. They can only hold broad US stock index funds with fees of up to 0.10 percent.
For children born between January 1, 2025 and December 31, 2028The federal government will automatically contribute $1000 Once a family chooses to create an account. Contributions from parents, relatives, employers and qualifying charities can raise the annual balance to the maximum $5,000 per child per year Starting July 2026.
Unlike 529 plans or custodial accounts, Trump accounts are locked until age 18. At that point, the entire balance rolls over into an IRA-like account. Distributions follow Traditional IRA rules, including penalties on most withdrawals before age 59½ unless the funds are used for qualified purposes such as education costs, first home purchases, or small business start-up expenses.
Financial planners say this structure may limit the benefit of the account. Limits on withdrawals and a relatively narrow investment menu make Trump accounts less flexible than 529 plans or UGMA/UTMA custodial accounts. But for families who receive a $1,000 contribution (and a potential additional $250), free money is free money!
You can see a comparison of Trump accounts, UGMA/UTMA, and 529 Plans here.
How to Claim the $1,000 Child Bonus
The Treasury will no A Trump account is automatically created unless a parent or guardian makes the election first. This step occurs through IRS Form 4547Now, document the opening of a Trump account and request a trial contribution.
Here’s the process as described by the IRS and Treasury:
1. Fill out IRS Form 4547
Parents or guardians must file Form 4547 To create a Trump account for an eligible child. The same form is used to claim the initial $1,000 federal deposit. Families may file the form at any time, including along with their 2025 federal tax returns.
Starting in mid-2026, families will also have the option to submit Form 4547 through an online account at TrumpAccounts.gov.
2. The treasury opens the account
Once the form is submitted, the Treasury Department or its designated fiscal agent will create the account and notify the person who made the selection. Families will need to complete the authentication step to activate the account.
This will likely work similarly to Direct Treasury.
3. The government deposits $1,000
For eligible children (US citizens born from 2025 through 2028 who have valid Social Security numbers) the Treasury will make a deposit. One-time contribution of $1,000. This deposit does not count toward the $5,000 annual limit.
4. Potential additional charitable reward
Thanks to Dells’ $6.25 billion commitment, it was the first 25 million children aged 10 years or younger Living in zip codes with median household income below $150,000 you will receive Additional $250. The Treasury Department will determine eligibility based on census income data linked to zip codes – families do not need to apply separately.
5. Contributions begin on July 4, 2026
Families and other contributors can begin adding after-tax dollars to Trump’s accounts starting on that date.
What comes next?
The basic regulations have now been established, but there are still outstanding questions. The Treasury Department has not yet finalized how accounts will be transferred to IRAs or how families will transfer accounts to private brokerage firms. The agency says additional guidance will be issued in 2025 and 2026.
Right now, families can take two concrete steps: note the eligibility period and prepare to file Form 4547 As soon as possible (or with your next tax return).
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