‘Trump Account for Kids’: How to Unlock the New $1,000 Starter Savings for Your Child

The rush to open a “Trump account for kids” is picking up speed nationwide, as millions of parents race to claim the federal government’s new $1,000 starter deposit before the July 4 launch of the online portal. What a Trump account is Created under President Donald Trump’s 2025 “One Big Beautiful Bill,” the Trump Account—technically a 530A account—gives every U.S. child under age 18 a tax-advantaged investment account. Babies born between Jan. 1 2025 and Dec. 31 2028 automatically qualify for a one-time $1,000 Treasury seed contribution; older minors simply get the account without the seed money. How to claim the $1,000 1. Verify eligibility: The child must have a Social Security number and be a U.S. citizen or resident alien. 2. File IRS Form 4547: Parents or legal guardians elect the account on their 2025 tax return; the checkbox appears in popular tax-software updates rolling out this spring. 3. Wait for activation: Treasury says the first deposits will hit custodial accounts “on or shortly after July 4 2026,” once the Invest America platform opens. Why interest is exploding • Free money: A $1,000 lump sum invested solely in a total-market index fund could grow to roughly $8,400 by age 28 at a historical 7% annual return. • No earned-income hurdle: Unlike a Roth IRA, contributions (up to $5,000 a year, indexed for inflation) can flow from parents, grandparents, employers or even crowdfunding campaigns. • Auto-rollover at 18: The account converts to a traditional IRA, keeping its tax-deferred status. Unanswered questions Financial planners warn that final regulations on early-withdrawal penalties, eligible broker lists and beneficiary changes have not been published. “There are more unanswered questions than answered ones,” Georgetown law professor Lily Becker told CNBC this week. Equity concerns Opt-in paperwork could shut out lower-income families who do not file tax returns. Marketplace reports that advocates are pressuring Congress to add an automatic enrollment backstop so “the kids who need the boost most aren’t left behind”. What parents should do now • Gather documents: Social Security cards, birth certificates and banking details. • Decide on custodianship: The adult who files Form 4547 controls the account until age 18. • Compare with 529 plans: A 530A can complement, not replace, a 529; education withdrawals from a 529 remain tax-free. Bottom line With a $1,000 head start, ultra-low fees and the power of compounding, the Trump account for kids could become the most consequential child-wealth initiative in decades—if families act before the July 4 deadline.