Parents wanting to take advantage of new Trump Accounts for their children may want to act soon. The accounts, a provision of President Donald Trump’s tax legislation, are designed to give $1,000 to every newborn whose parents open them.
Your tax deadline may be the best window to set this up and take full advantage of the available money. If you’re ready to learn more and potentially open a Trump Account, read on for quick details about how they work and how to take part in the program.
How the Accounts Work
According to the Trump Administration, the money in Trump Accounts is invested in the stock market by private firms. The child can then access the money when they turn 18.
If you want to take part, you can submit a form electronically with your 2025 federal income tax return. If you miss your tax deadline, you may need to wait some months before an online portal will reportedly be available.
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Why the Accounts Matter
“This is one of the biggest wealth-building opportunities the government has created in decades,” said Andrew Lokenauth, founder of Fluent in Finance. “Trump Accounts give every baby born between Jan. 1, 2025 and Dec. 31, 2028, a $1,000 seed investment, assuming their parents file the right form.”
Lokenauth added that parents don’t realize this isn’t just free money today.
“It’s free money that compounds for decades,” he said. “At a 7% annual return, that $1,000 becomes about $5,800 when the kid turns 18. By retirement age, we’re looking at potential six-figure sums.”
Editor’s note: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.
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This article originally appeared on GOBankingRates.com: $1K Government Cash for Babies? Unlock Trump Accounts Before the Tax Deadline
