Trump Accounts: How to Claim the $1,000 for Your Baby

Oct 29

2 min read

Had a baby in 2025 or 2026, or expecting one? The government will put $1,000 into an investment account for your child. It's called a Trump Account, and the easiest time to sign up is when you file your taxes.

What is a Trump Account?

It's a new tax-advantaged savings account for children, created by the 2025 tax law. The money is invested in low-cost funds that track the US stock market. It grows tax-deferred until your child is an adult.

Who gets the free $1,000

The one-time $1,000 federal deposit goes to children who:

• Were born between January 1, 2025 and December 31, 2028

• Are US citizens

• Have a valid Social Security number

Children born outside those dates can still have a Trump Account. They just don't get the $1,000 seed money.

How to sign up

Parents elect the account and the pilot deposit on IRS Form 4547. You can file it with your tax return, which is the simplest way. If your baby was born in 2026, we can include Form 4547 when we prepare your 2026 return this season.

Adding your own money

Starting July 4, 2026, families can contribute up to $5,000 per year per child. Grandparents, aunts and uncles can contribute too. Employers can add up to $2,500 a year tax-free, and that counts toward the $5,000 limit.

Parent contributions aren't tax deductible, but the growth isn't taxed while it stays in the account.

When can the money be used?

The money stays in the account until the year your child turns 18. After that, the account follows rules similar to a traditional IRA. That makes it a strong head start for college, a first home or retirement.

What it could grow to

If the $1,000 grows at an average of 7% a year, it would be worth about $3,400 by age 18, with no extra deposits. Add $100 a month and it could pass $45,000. Results aren't guaranteed, but time is your child's biggest advantage.

Let us set it up with your taxes

Don't leave free money on the table. At JVM Accounting, we'll make sure your Trump Account election is filed correctly with your return. Book your family's 2026 tax appointment at jvmaccounting.com or call (904) 889-2326. Se habla español.