Do You Have a Child? Here's How to Claim a $1,000 Trump Account for Free
$1000 Can Add up to a Lot By the Time Your Child Turns 18 in 2043
Have a newborn in your life. Starting with babies born in 2025, the federal government created “Trump Accounts” that seed eligible children with a one time $1,000 deposit. The idea is simple, get kids invested early, let compound growth work for decades, and allow families to add contributions over time.
Below is what parents need to know right now, including when it actually starts and how to claim.
Quick facts
What it is: A government backed investment account for kids, seeded with $1,000
Who qualifies: U.S. citizens born Jan 1, 2025 through Dec 31, 2028, with a Social Security number
Status: Enacted in law, rollout and claiming tied to 2025 tax returns that are filed in 2026
Investments: Low cost broad market index funds, managed by approved providers
Contributions: Up to $5,000 per year from family or friends, employers may add up to $2,500 toward the cap
Has it actually started
The law is on the books, but the practical rollout begins in 2026. Parents will make the election while filing 2025 tax returns in 2026. If parents do not act, the government will create the account automatically for eligible children. Sources at the end confirm timing and process.
Who qualifies
Your child qualifies if both are true.
U.S. citizen born between Jan 1, 2025 and Dec 31, 2028
Has a Social Security number
Children outside this window can still open similar accounts later, they just do not receive the $1,000 government seed.
How to claim the $1,000
File your 2025 tax return in 2026 and elect a Trump Account for your eligible child
Have the child’s SSN ready
If you do not elect it, the government will auto open the account for eligible children
Expect the seed deposit after setup is complete, you will receive instructions by mail or electronically
How the money is invested
Funds are placed into low cost broad market index funds. Think simple stock index exposure, not individual stock picking. Families will likely choose among conservative, balanced, or growth index options. The goal is long term compounding with minimal fees.
What you can add
Up to $5,000 per year total from family and friends until the child turns 18
Employers can add up to $2,500 per year and that contribution does not count as taxable income for the employee
When kids can use it
At age 18 the account becomes available for approved uses. Education costs, a first home purchase, or starting a small business. Qualified uses avoid early withdrawal penalties. Earnings are still taxed as ordinary income when withdrawn.
Using the money for non qualified expenses before age 59½ may trigger income tax and a 10 percent penalty.
Taxes, simply
The $1,000 deposit is not taxable income to your family
Growth is tax deferred
Qualified uses avoid the early withdrawal penalty, gains are taxed as income when withdrawn
FAQ
Was this passed as part of a law
Yes. It is part of the One Big Beautiful Bill Act, signed July 4, 2025. See the White House overview in Sources.
Has the program actually started
The law is in effect. Accounts are expected to be available starting mid 2026, with the election made on 2025 tax returns that are filed in 2026.
Where does the $1,000 come from
Congress funds the deposits from general federal revenues under the Act.
Who manages the investment
Treasury sets policy, IRS handles enrollment, and day to day investing is handled by authorized asset managers in low cost index funds.
How much can families contribute
Up to $5,000 per year until the child turns 18, plus up to $2,500 per year from employers toward that cap.
What can my child use it for at 18
Qualified uses include education costs, a first home, or starting a small business.
Bottom line
If you had a baby in 2025, or you are expecting soon, prepare now. Make sure your child has an SSN, keep paperwork handy, and watch for the Trump Account election in your 2025 return filed in 2026. Consider small automatic contributions each year. Time in the market can be powerful.
Sources
OpenClassActions: https://openclassactions.com/news/trump-accounts-1000-for-every-baby.php
White House explainer and program details: Trump Accounts Give the Next Generation a Jump Start on Saving
https://www.whitehouse.gov/research/2025/08/trump-accounts-give-the-next-generation-a-jump-start-on-saving/?utm_source=openclassactions.com The White HouseWhite House article announcing the program and core mechanics
https://www.whitehouse.gov/articles/2025/06/trump-accounts-will-chart-path-to-prosperity-for-a-generation-of-american-kids/?utm_source=openclassactions.com The White HousePBS NewsHour coverage and expert discussion
https://www.pbs.org/newshour/politics/what-experts-think-about-the-1000-trump-accounts-for-babies?utm_source=openclassactions.com PBSH&R Block timing explainer on Trump Accounts and 2026 filing season
https://www.hrblock.com/tax-center/irs/tax-law-and-policy/one-big-beautiful-bill-trump-accounts/?utm_source=openclassactions.com H&R Block Tax preparation companyInvestopedia guide for new parents on how the program works
https://www.investopedia.com/new-parents-how-to-get-paid-under-the-big-beautiful-bill-s-baby-bonus-program-11770693?utm_source=openclassactions.com InvestopediaHouse Ways and Means summary of the law’s newborn benefit
https://waysandmeans.house.gov/2025/06/10/trump-accounts-provide-greater-financial-security-for-the-next-generation-of-americans-just-like-their-namesake/?utm_source=openclassactions.com Ways and Means