Table of Contents
- Trump Accounts (savings plans for children) will open in 2026 with a one-time $1,000 federal contribution for babies born from 2025 through 2028.
- Families must file IRS Form 4547 to establish the account and claim the baby bonus.
- A $6.25 billion charitable commitment from Michael and Susan Dell will add an extra $250 for up to 25 million eligible children living in ZIP codes with median household incomes below $150,000.
The Treasury Department is set to launch the nation’s newest child-focused savings program, called Trump Accounts.
Beginning in 2025, the federal government will offer a $1,000 “baby bonus” through newly created Trump Accounts.
These accounts were created with the One Big Beautiful Bill Act (OBBBA). The Treasury Department will open these accounts once families file the required election form, making the benefit available to every U.S. citizen born between 2025 and 2028.
Interest in the program surged this week after President Donald J. Trump joined philanthropists Michael and Susan Dell at the White House to announce a $6.25 billion charitable commitment. That gift will provide an additional $250 for up to 25 million eligible children who live in ZIP codes with median household incomes below $150,000. The contribution is expected to dramatically expand the early balances of Trump Accounts even before families begin contributing their own funds.
But many parents are asking the same question: How do we actually claim the $1,000 baby bonus for the new Trump Accounts?
What Is A Trump Account (And What It Isn’t)
Trump Accounts are designed for children under 18 and operate as long-term investment vehicles. They can only hold broad U.S. equity index funds with fees capped at 0.10 percent.
For children born between January 1, 2025, and December 31, 2028, the federal government will automatically contribute $1,000 once a family elects to establish the account. Contributions from parents, relatives, employers, and qualifying charities can raise the annual balance, capped at $5,000 per child per year beginning in July 2026.
Unlike 529 plans or custodial accounts, Trump Accounts are locked until age 18. At that point, the entire balance converts into an IRA-like account. Distributions follow traditional IRA rules, including penalties for most withdrawals before age 59½ unless funds are used for qualified purposes such as education costs, first-time home purchases, or small business start-up expenses.
Financial planners say that structure may limit the account’s usefulness. The restrictions on withdrawals and the relatively narrow investment menu make Trump Accounts less flexible than 529 plans or UGMA/UTMA custodial accounts. But for families receiving the $1,000 contribution (and the possible $250 supplement) free money is free money!
You can see our comparison of Trump Accounts to UGMA/UTMA and 529 Plans here.
How To Claim The $1,000 Baby Bonus
The Treasury Department will not automatically create a Trump Account unless a parent or guardian first makes an election. That step happens through IRS Form 4547, now the document for opening a Trump Account and requesting the pilot contribution.
Here’s the process as outlined by the IRS and Treasury:
1. File IRS Form 4547
Parents or guardians must file Form 4547 to establish a Trump Account for a qualifying child. The same form is used to claim the $1,000 federal seed deposit. Families may file the form at any time, including alongside their 2025 federal tax return.
Beginning in mid-2026, families will also have the option to submit Form 4547 through an online account at TrumpAccounts.gov.
2. Treasury Opens the Account
Once the form is filed, Treasury or its designated financial agent will create the account and notify the individual who made the election. Families will need to complete an authentication step to activate the account.
This will likely operate similar to TreasuryDirect.
3. The Government Deposits $1,000
For eligible children (U.S. citizens born from 2025 through 2028 with valid Social Security numbers) Treasury will deposit the one-time $1,000 contribution. This deposit does not count toward the annual $5,000 limit.
4. Potential Additional Charitable Bonus
Thanks to the Dells’ $6.25 billion commitment, the first 25 million children age 10 and under who live in ZIP codes with median household incomes below $150,000 will receive an additional $250. Treasury will determine eligibility based on Census income data linked to ZIP codes – families do not need to apply separately.
5. Contributions Begin July 4, 2026
Families and other contributors can begin adding after-tax dollars to Trump Accounts starting on that date.
What Comes Next
The core regulations are now in place, but outstanding questions remain. Treasury has not yet finalized how accounts will convert to IRAs or how families will transfer accounts to private brokerages. The agency says additional guidance will be issued in 2025 and 2026.
For now, families can take two concrete steps: note the eligibility window and prepare to file Form 4547 as soon as possible (or with your upcoming tax return).
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