08/21/2026
The government will put $1,000 into an account for your child. Most parents don't know they have to claim it. 💙
Trump accounts opened July 4, 2026. Here's the honest version:
✅ $1,000 from Treasury for kids born Jan 1, 2025 – Dec 31, 2028 (U.S. citizen, has an SSN) ✅ You have to elect it — IRS Form 4547 or trumpaccounts.gov. Treasury has said it won't open accounts automatically. ✅ $5,000/year cap from all private sources. Employer contributions (up to $2,500 per employee) count inside that cap, not on top of it — but they aren't taxable income to you. ✅ Invested in low-cost broad U.S. index funds, fees capped at 0.10%
And the parts the headlines skip:
⚠️ Your own contributions come back tax-free — they create basis. But the growth, the $1,000 seed, and employer dollars are all taxed as ordinary income on the way out. ⚠️ Control passes on January 1 of the year your child turns 18. A December baby gets the keys at 17. ⚠️ For college specifically, a 529 is usually still the stronger tool — its growth comes out tax-free. (How Trump accounts get treated on the FAFSA is genuinely unsettled; the Department of Education hasn't said.)
Our take: claim the $1,000. It costs nothing and commits you to nothing. Then decide whether ongoing contributions actually belong here — that's a separate question, and the answer depends on your bracket, your goals, and what else you're already funding.
Questions about where this fits in your family's tax picture? Drop them below or send us a DM. 👇
Full breakdown on the blog — link in bio.
— General information, not tax advice. Rules current as of August 2026; key regulations are still in proposed form.
