Trump Accounts 2026: Who Qualifies for the $1,000 and How It Works

Starting July 4, 2026, the U.S. Treasury Department will launch “Trump Accounts,” a new program designed to help children build savings early with a $1,000 government contribution.

Eligibility Requirements

• Child must be born between January 1, 2025 and December 31, 2028

• Must be under 18 years old

• A parent or guardian must open the account

• Must file taxes and select the option on Form 4547

How the $1,000 Is Given

• The government deposits $1,000 automatically once approved

• Funds are placed into low-cost index investments

• Designed for long-term growth

Contribution Guidelines

• Up to $5,000 per year can be added

• Contributions from:

  • Parents

  • Relatives

  • Employers

• Some deposits do not count toward the annual cap

Account Rules Before 18

• Managed by a parent (custodian)

• Limited activity allowed:

  • Transfers

  • Rollovers

  • Refunds of excess contributions

What Happens at 18

• Account becomes more flexible, similar to a retirement-style account

• Early withdrawals may face a 10% penalty

• Exceptions include:

  • Education

  • First home purchase

Tax Treatment

• Government contribution is taxable later

• Personal contributions are tax-free when withdrawn

• Earnings are taxed upon withdrawal

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