Building on the initial announcement of Trump Accounts, the IRS and Treasury Department have released specific guidelines on eligibility, account opening procedures, and contributions for the $1,000 federal investment program for newborns. Aimed at supporting families via low-cost index funds, the program launches in July 2026 for children born 2025-2028.
The Trump Accounts program, part of President Donald Trump's 'One Big Beautiful Bill,' seeds accounts with a $1,000 deposit for eligible U.S. citizen newborns into a deferred, low-cost index fund tracking the U.S. stock market. As previously detailed, families, employers, and others can contribute up to $5,000 annually per child, with employer inputs tax-exempt.
New IRS guidelines specify eligibility: children born January 1, 2025, to December 31, 2028, with U.S. citizenship and a valid Social Security number. Parents or guardians must open the account by December 31 of the year the child turns 17, using Form 4547 during tax filing or an online portal. The account opener is responsible, with resources available online. The initial $1,000 can be opted for by parents upon opening or claimed later by legal guardians, parents, adult siblings, or grandparents in priority order.
IRS Chief Executive Officer Frank J. Bisignano called it a 'pro-family [effort] that will help millions of Americans harness the strength of our economy.' Treasury Secretary Scott Bessent has described the accounts as 'a trust fund, a piece of the American economy' accessible at 18 or convertible to an IRA-type program. By early 2026, millions of forms had been filed. The program officially launches July 2026.
