Trump Accounts Launch July 4, 2026: $1,000 for Kids and How to Qualify

A new savings program from the U.S. Treasury Department is set to roll out on July 4, 2026, giving eligible children a $1,000 government-funded start.

Here’s a simple breakdown of how it works and who qualifies.

Who Gets the $1,000

• Children born January 1, 2025 to December 31, 2028

• Must be under age 18

• Account is opened by a parent or guardian

To receive the $1,000 seed money, parents must file taxes and check the box on Form 4547.

How the Account Works

• Account is in the child’s name

• Parent acts as custodian until age 18

• Government deposits $1,000 automatically

• Funds are invested in low-cost index funds for long-term growth

Contribution Rules

• Family and others can contribute up to $5,000 per year

• Contributions are optional

• Some deposits like government funds do not count toward the cap

What Happens at Age 18

Once the child turns 18:

• Account works similar to an IRA-style savings account

• Withdrawals before age 59½ may face a 10% penalty

• Exceptions include:

  • Education expenses

  • First-time home purchase

Taxes Explained Simply

• Government seed money is taxable when withdrawn

• Parent contributions are tax-free when withdrawn

• Investment earnings are taxed upon withdrawal

Dates to Know

• July 4, 2026: Program officially starts

• No contributions allowed before this date

• Accounts can be opened during tax filing

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