IRS Releases Rules For Trump Accounts $1,000 Baby Investment Program
The Internal Revenue Service and the Department of the Treasury have released new rules outlining how families can participate in the Trump Accounts program, a federal initiative that provides a $1,000 investment account for eligible newborns.
The program was created as part of President Donald Trump’s “One, Big, Beautiful Bill” and is designed to help American families build long term wealth for their children beginning at birth.
Under the program, the federal government will deposit $1,000 into a deferred, low cost index fund for qualifying newborns. Families, relatives, and even employers will be able to contribute additional funds each year.
Total contributions are capped at $5,000 per child annually.
Parents have until December 31 of the calendar year in which their child turns 17 to open the initial account, according to guidance released by the IRS.
“Trump Accounts are a pro family initiative that will help millions of Americans harness the strength of our economy to lift up this generation and generations to follow and unlock the American Dream,” IRS Chief Executive Officer Frank J. Bisignano said in a statement.
“Creating Trump Accounts was one of the most important provisions in President Trump’s historic One, Big, Beautiful Bill, and these regulations are an example of the hard work of Treasury and the IRS to ensure eligible families can take advantage of the program,” he added.
Parents can open the account when filing their taxes by submitting Form 4547 or through a separate online portal provided by the IRS.
The agency said that the person who opens the account will be responsible for managing it.
To qualify, a child must have been born between 2025 and 2028, must be a United States citizen, and must have a valid Social Security number.
Parents may choose to receive the initial $1,000 government contribution when opening the account. If they choose not to claim it at that time, the IRS says others who may claim the contribution include a legal guardian, a parent, an adult sibling, or a grandparent.
Treasury Secretary Scott Bessent previously described the program as a long term investment designed to give every American child a financial starting point.
“It is a trust fund, a piece of the American economy for every child that they will be able to take out when they are 18, or convert into a retirement style program,” Bessent said.
Early interest in the program appears strong. In February, Bessent said approximately two million forms covering about three million children had already been filed.
President Trump has promoted the initiative as a way to give American families a financial head start.
“They will be getting a big jump on life,” Trump said about the children who will benefit from the program.
The Trump Accounts program is scheduled to officially launch in July 2026.