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) — officially launched on July 5, 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
A Trump Account is a new IRA-style savings account set up for a child. Funds are invested and grow tax-deferred until the child reaches adulthood, at which point the account converts to standard IRA rules. The program launched July 5, 2026, and account activation information was mailed by the IRS starting in May 2026.
Do You Qualify for the $1,000 Deposit
The pilot program deposits $1,000 into the account of any child who meets all of the following:
- Born between January 1, 2025, and December 31, 2028
- A U.S. citizen
- Has a valid Social Security number
- Has not yet turned 18 by the end of the calendar year the account is elected
The $1,000 is a one-time pilot deposit, not an ongoing annual payment.
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.
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 in total family contributions
- An employer may add up to an additional $2,500 per year on a pre-tax basis through a cafeteria plan, where offered
Contribution limits and rules can be adjusted by future IRS guidance, so check IRS.gov or TrumpAccounts.gov before assuming this year’s limits will carry forward unchanged.
How the Money Is Invested and Grows
Funds in a Trump Account are invested in low-cost U.S. stock index funds until the child turns 18. 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. Check IRS.gov or TrumpAccounts.gov for any announced deadlines before assuming you have unlimited time.
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.
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.