If you had a baby in 2025 or plan to before the end of 2028, the federal government may already owe your child $1,000. Trump Accounts — a new type of tax-advantaged savings account for kids, created under the Working Families Tax Cuts (part of the One Big Beautiful Bill) — launched on July 4, 2026. Here’s what the account actually does, who qualifies for the $1,000 pilot deposit, and exactly how to activate one.
What Are Trump Accounts
According to the IRS instructions for Form 4547, a Trump account is a type of traditional IRA opened for a child. Money inside grows tax-deferred, and standard IRA rules apply once the child reaches adulthood. The program launched on July 4, 2026, and the IRS says no contributions, including the $1,000 pilot deposit, could be made before that date.
Do You Qualify for the $1,000 Deposit
Under the IRS instructions for Form 4547, the pilot program deposits $1,000 into the account of a child who meets all of the following:
- Born after December 31, 2024, and before January 1, 2029
- A U.S. citizen
- Has a Social Security number that is valid for employment and was issued before the election is made
- Expected to be the qualifying child of the person making the election for that tax year
- No pilot contribution election has already been processed for the child
The $1,000 is a one-time pilot deposit, not an ongoing annual payment. The account itself has a wider door: any child with a valid Social Security number who is under 18 by the end of the election year can have one, even if the child is too old for the pilot deposit.
How to Open and Activate an Account
According to the IRS, activation is a three-step process that takes about 5 to 10 minutes:
- Sign in — Create or log in to an IRS account through ID.me.
- Elect — Complete and submit Form 4547 to elect your child for the account.
- Check status — Monitor your submission until it’s confirmed.
Before you start, have your child’s Social Security number, date of birth, and current address ready. You can also find activation steps and updates at TrumpAccounts.gov.
Three Ways to File Form 4547
The IRS instructions say the form can be filed at any time and list no specific deadline. Still, the child has to be under 18 by the end of the election year, and the pilot deposit only follows an election, so there is no upside in waiting.
| Method | What the IRS says |
|---|---|
| With your e-filed tax return | The IRS calls this the fastest option. The child doesn’t need to be claimed as a dependent on the 2025 return if you file the form with that return. |
| Online through your IRS account | Sign in with ID.me, complete Form 4547, then check the status of the submission. The IRS page says it should take 5 to 10 minutes. |
| By mail | Send it to the address listed at IRS.gov/PaperReturns for the election year. Don’t attach it to Form 1040-X, and don’t amend a Form 1040 to include it. |
Which Situation Are You In?
The pilot deposit and the account itself have slightly different rules, which trips people up. Find the row that matches your family.
| Your situation | What the IRS instructions say |
|---|---|
| Your child was born 2025-2028 and you expect to claim them as your qualifying child | Elect the account and request the pilot contribution on the same Form 4547. File with your e-filed return if you can. |
| Your child was born 2025-2028, but a grandparent or adult sibling wants to start the account | The instructions list who can elect an account in order of priority: legal guardian, parent, adult sibling, grandparent. The pilot deposit requires the person who expects the child to be their qualifying child, so talk to the parents first. |
| Your child was born before 2025 and is under 18 | You can still elect the account, but the child isn’t eligible for the $1,000 pilot deposit. The instructions say to make the account election and leave the pilot line unchecked. |
| Your newborn’s Social Security number hasn’t arrived yet | The number must be valid and issued before the election is made, so wait for it before filing. |
| You aren’t sure someone already filed for the child | The instructions require that no earlier Trump account election exists for the child. Check the status in your IRS account before filing a second form. |
Contribution Limits Beyond the Initial $1,000
Once an account is open, family and friends can contribute more on top of the pilot deposit:
- Up to $5,000 per year from other contributions, including employer contributions
- Employer contributions (under section 128 of the tax code) are capped at $2,500 per year, and they count toward that same $5,000 rather than sitting on top of it
- The $1,000 pilot deposit, qualified general contributions, and qualified rollovers don’t count toward the annual limit
For example, say an employer puts $2,000 into your child’s account this year. That uses $2,000 of the $5,000 limit, which leaves $3,000 for you and other family members. The dollar limits are adjusted for inflation after 2027, so check IRS.gov or TrumpAccounts.gov before assuming this year’s amounts will carry forward unchanged.
How the Money Is Invested and Grows
Under the IRS’s proposed regulations, money in a Trump account during the growth period would be limited to mutual funds and ETFs that track an index of mainly U.S. companies, with annual fund fees capped at 0.1%. The growth period ends on December 31 of the year the child turns 17, and the rules are still proposed, so details could change. After that, the account is generally treated like a traditional IRA, meaning standard IRA contribution, withdrawal, and tax rules apply going forward.
FAQ
Is the $1,000 deposited automatically?
No. A parent, guardian, or other authorized individual needs to complete the account election (Form 4547) for the child before the deposit is made.
What happens if I don’t activate the account?
If the account isn’t elected, the $1,000 pilot deposit isn’t issued. The IRS instructions list no filing deadline, but the child has to be under 18 by the end of the election year, so it’s best not to leave it. Check IRS.gov or TrumpAccounts.gov for any announced changes.
Can a child who isn’t a U.S. citizen qualify?
Based on current IRS guidance, the child must be a U.S. citizen with a valid Social Security number to qualify for the pilot deposit.
Can I file again if I’m not sure the first form went through?
Check the submission status in your IRS account first. The instructions require that no earlier Trump account election exists for the child, so a second filing can cause problems.
Related: $2,200 Per Child: How the Now-Permanent Child Tax Credit Works Under the OBBBA | $1,000 Retirement Match Coming in 2027: How the New Saver’s Match Works
This article is for general informational purposes and is not tax, legal, or financial advice. Rules and limits for Trump Accounts can change with future IRS guidance. For guidance specific to your situation, consult IRS.gov, TrumpAccounts.gov, or a licensed tax professional.