Heres how to find out if your child is eligible
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The new Trump Accounts program establishes tax-advantaged investment accounts for children with a $1,000 seed contribution from the U.S. government for eligible newborns.
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Parents or guardians, and optionally other family members, employers, or charities, can contribute up to $5,000 per year per child (with up to $2,500 of that possibly coming from an employer) to help the account grow over time.
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The money is invested in low-cost U.S. stock-index funds (e.g., broad-based mutual funds or ETFs), and cannot be withdrawn until the child reaches age 18; at that point the account generally functions like a traditional retirement account (IRA). (Forbes)
Michael and Susan Dell, of the Dell Computer fortune,made headlines this week when they announced a $6.25 billion donation to the new Trump Accounts for infants. An estimated 25 million children will benefit that single donation.
Many parents may be asking, What is a Trump Account and can my child benefit?
Heres how it works:
Launched under the recently passed One Big Beautiful Bill Act (OBBBA), Trump Accounts are meant to give children a financial head start from birth automatically investing in the stock market on their behalf.
For children born between January 1, 2025 and December 31, 2028, the government will deposit $1,000 into a new Trump Account if parents/guardians file the proper election form.
The account is then managed by the childs guardian but invested broadly in U.S. equities, aiming to grow over decades via compounding.
Whats behind the program?
Supporters argue Trump Accounts:
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Offer every American child regardless of family income a chance to build long-term financial assets from birth.
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Promote financial literacy and long-term saving habits by exposing families early to investing and compounding returns.
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Provide a flexible multi-purpose nest egg usable for higher education, starting a business, buying a first home, or other major expenses when the child becomes an adult.
According to estimates by the administrations economists, a baby born in 2026 whose guardians contribute the annual maximum could see the account reach roughly $303,800 by age 18and over $1 million by age 28 under optimistic stock-market growth assumptions.
How parents can enroll their child
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Check eligibility: The child must be a U.S. citizen, under 18, and have a Social Security number. For the $1,000 seed benefit, birth must fall between Jan. 1, 2025 and Dec. 31, 2028.
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Make the official election: A parent or legal guardian must file the required election via the appropriate form. According to the official guidance, that is IRS Form 4547.
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Wait for the account setup: Once the election is filed, the Treasury will establish the account and deposit the initial $1,000 (for eligible babies).
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Begin contributing (optional): Starting July 4, 2026, guardians or other approved contributors (parents, relatives, employers, charities) may add up to $5,000 per year (with employer contributions capped at $2,500).
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Let the account grow: Funds are invested in low-cost U.S. stock index funds. Withdrawals will generally only be allowed once the child turns 18 (then treated like a traditional IRA), with options for education, home purchase, business startup, or other qualified uses.
Posted: 2025-12-04 13:11:03

















