By Kristen Eurtig, CFP®
Founder, Brooklyn Plans
The One Big Beautiful Bill introduced a brand-new savings vehicle for kids — and it officially went live this month. Think of it as a traditional IRA that starts in childhood. Here’s what matters.
The Free $1,000 (If It Applies)
Children born between January 1, 2025, and December 31, 2028, qualify for a one-time $1,000 federal seed contribution. To claim it, a parent or guardian files IRS Form 4547 — either with their tax return or through TrumpAccounts.gov.
For everyone else: any child under 18 with a Social Security number is eligible. Same form, same portal — you just won’t get the federal deposit. The account still works exactly the same way.
How It Works
- Parents, grandparents, and family can contribute up to $5,000/year per child
- Employers can chip in up to $2,500/year — tax-free to the employee
- Funds must be invested in low-cost U.S. equity index funds (expense ratios capped at 0.10%)
- Money is locked until the child turns 18, then converts into a Traditional IRA in their name
- Contributions are after-tax; earnings grow tax-deferred
Trump Account vs. 529
These are not the same thing and are not competing — a 529 funds education, a Trump Account builds long-term wealth. If your family is already using a 529, this can sit alongside it.
Want to talk through whether this fits your family’s strategy? Let’s connect.