New Federal “Trump Accounts” Offer $1,000 Savings Kickstart for Eligible Children

Millions of children across the U.S. will soon have access to a powerful new savings tool — especially those from working-class and middle-income families. The official name for this program is a “Trump Account,” created under the One Big Beautiful Bill Act (OBBBA). It’s part of a broader federal push to help kids start saving early for education, housing, or even starting a business.

Here’s what families need to know:

What Is a Trump Account?

A Trump Account is a federally created, tax-advantaged custodial investment account for children. While the name reflects the law under which it was created, the account itself functions like a long-term savings tool — similar to a Roth-style account, but for minors.

The account is opened using IRS Form 4547, and its goal is to promote early financial security by allowing families, employers, and government programs to contribute tax-favored funds to a child’s future.

What Are the Benefits?

The biggest headline benefit: a one-time $1,000 federal contribution for eligible children. Once the account is established by submitting Form 4547, the $1,000 deposit is automatically triggered — no matching, no income limits, and no requirement to make additional deposits.

Who Can Have a Trump Account?

To open a Trump Account for a child, the following must apply:

• The child must be a U.S. citizen or legal resident with a valid Social Security number.

• The child must be under age 18 as of July 4, 2026.

• The child must be claimed as a dependent on a federal income tax return for 2025 or earlier.

• A parent or guardian must file IRS Form 4547 to create the account.

Who Gets the $1,000 Federal Contribution?

To qualify for the $1,000 seed deposit, a child must:

• Meet all the criteria above, and

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

Children born before 2025 can still have an account opened and receive tax-deferred contributions, but they will not receive the initial $1,000 government funding.

There are no income limits for eligibility. However, higher-income households may not qualify for any potential state-level incentives or matching programs that could be tied to these accounts in the future.

How Do I File IRS Form 4547?

Form 4547 is the official application to establish a Trump Account. You have two filing options:

1. File it with your 2025 federal tax return, either electronically or by mail.

2. File it separately now — the IRS is already accepting it as a standalone form.

An IRS online portal is expected to launch in 2026, but you do not need to wait. Filing early ensures your child’s account is ready once deposits begin.

When Will the $1,000 Be Deposited?

According to the Treasury Department, no contributions will be made before July 4, 2026. Submitting Form 4547 in advance ensures that your child is properly registered and in the system before funds begin disbursing.

What About Ongoing Contributions?

• Families can contribute up to $5,000 per year per child, starting in 2026.

• Up to $2,500 of that annual limit may come from an employer.

• Contributions are made after-tax and are not tax-deductible, but account growth is tax-deferred.

• The $1,000 seed contribution does not count against the $5,000 annual contribution limit.

Final Thoughts

The Trump Account program is a federally backed savings head start. Filing Form 4547 early is simple and positions your child to receive the $1,000 contribution — no strings attached.

Whether your goal is saving for college, buying a first home, or starting a future business, it makes sense to set this up now. If you’re unsure how to file or coordinate it with your 2025 tax return, contact a licensed tax professional.