Current as of October 1, 2026. The program is new, its rules aren’t final, and the IRS says more regulations are coming. Check TrumpAccounts.gov or irs.gov/trumpaccounts before you act.

Got a kid born in 2025, 2026, 2027, or 2028? The U.S. Treasury will put $1,000 into an investment account for them. It’s called a Trump Account (the program’s legal name under the 2025 tax law): a tax-advantaged account that holds a U.S. stock index fund and grows until the kid turns 18.

Accounts opened and the first $1,000 deposits started going out on July 4, 2026. The catch: the money doesn’t land on its own. A parent or guardian has to claim the account first.

What you get

Treasury puts in a one-time $1,000 per eligible child. After that, it works like a long-term investing account:

  • The money sits in a low-cost, unleveraged fund that tracks the S&P 500 or another index of mostly American stocks. No individual stocks or crypto. Treasury’s default at launch is State Street’s S&P 500 ETF (SPYM), with four other broad U.S. index ETFs to pick from.
  • Growth is tax-deferred: no tax on gains year to year.
  • Family and friends can add up to $5,000 a year total. That money goes in after-tax, so you can’t deduct it. The cap is $5,000 for 2026 and 2027 and adjusts for inflation after that.
  • An employer can put in up to $2,500 a year tax-free, and that counts toward the same $5,000 cap. Treasury says 50+ companies have committed to contributing. If your civilian spouse works for one, that’s free money. We found no record of DoD offering this to service members.

Opening the account costs nothing. Left alone, $1,000 in a broad U.S. index fund has historically grown into several thousand dollars over 18 years. No guarantee, since markets go down too. Add even small yearly contributions and it compounds from there.

Who qualifies for the $1,000

All four have to be true:

  1. The child was born between January 1, 2025 and December 31, 2028.
  2. The child is a U.S. citizen.
  3. The child has a Social Security number.
  4. The person claiming the seed expects the child to be their qualifying child for tax purposes that year. For most of us, that’s the parent who claims the kid.

No income limit, nothing military-specific. A service member’s newborn qualifies like anyone else’s.

Kids outside that birth window can still get a Trump Account, just without the $1,000 seed. The account is open to any child under 18 with a Social Security number.

How to claim it

As of October 1, 2026, Treasury says it has automatically enrolled every eligible child under 18 with a valid SSN. Your kid probably has an account waiting, but an eligible child doesn’t get the $1,000 until a parent or guardian claims the account.

  1. Download the official Trump Accounts app (iOS or Android). No phone? Treasury’s web version is at trumpaccount.com.
  2. Verify your identity and your relationship to your child, review the child’s info, and accept the account terms.
  3. Once it’s claimed, the $1,000 seed goes to an eligible child’s account, and family, friends, and employers can start contributing.

Already filed Form 4547? That’s the IRS election form. TrumpAccounts.gov says you can file it right in the Trump Accounts app, with your tax return, or through your IRS online account (ID.me sign-in). Treasury has been sending those families activation emails. Follow yours to finish setup in the app.

Haven’t done anything yet? Start with the app. Filing Form 4547 is still an official way to elect an account and enroll in the $1,000 pilot. Under the proposed rules, the election has to happen by December 31 of the year your kid turns 17. For a 2025–2028 baby that’s years away, but there’s no reason to sit on a free $1,000.

Watch for scams. Treasury says initial activation emails come only from no-reply@TrumpAccounts.Treasury.gov, and later messages come through the app or from @trumpaccount.com addresses. Treasury and its providers will never ask for your password or a one-time code. The official call center is 1-866-USA-4547. Don’t call a number you pulled from a search result.

When the money comes out

  • Money generally can’t be withdrawn before January 1 of the year the child turns 18.
  • After that, the account is generally treated like a traditional IRA. Growth gets taxed as income when it comes out, and so does the “free” money (the $1,000 seed and any employer contributions). After-tax dollars your family put in aren’t taxed twice. Withdrawals before retirement age can also trigger the usual IRA early-withdrawal penalty unless an exception applies.

The IRS says the detailed withdrawal and penalty rules are still coming in regulations. Plan on leaving this money alone until your kid is grown.

How it fits with 529s and Coverdells

You can have both. A Trump Account doesn’t replace a 529 or Coverdell.

  • A 529 plan is still the better fit for school money: it grows tax-free and comes out tax-free for qualified education costs.
  • A Coverdell ESA works the same way with a smaller annual cap.
  • A Trump Account is general-purpose, locked until 18, and comes with a $1,000 seed the others don’t.

So claim the Trump Account for the free $1,000, and keep dedicated college money in a 529, where tuition gets better tax treatment. We break down the 529 and Coverdell side in How to Fund Your Kid’s College on One Deployment.

Bottom line

Born 2025–2028, U.S. citizen, Social Security number: if that’s your kid, Treasury has already set up the account. The $1,000 goes in once you claim it. Download the official app, verify yourself, and claim it.

Official sources:

Not an official VA, DoD, IRS, or Treasury website. We summarize public federal information to help military families find benefits. Always confirm details with Treasury or the IRS before you act.