Kids Can Now Get a $1,000 Head Start

Trump Accounts are now live, giving families a new way to start investing for children before they reach adulthood.

The idea is simple: parents, guardians and other authorized individuals can establish a new type of individual retirement account for an eligible child. To qualify, the child must have a valid Social Security number and must not have reached age 18 before the end of the calendar year in which the election is made. Children born between Jan. 1, 2025, and Dec. 31, 2028, who are U.S. citizens may also qualify for a one-time $1,000 federal pilot contribution.

Trump Accounts, which became available July 4, 2026, are not automatically opened. An authorized individual must submit IRS Form 4547, the Trump Account election form. The form can be completed through an IRS online account, submitted with an e-filed tax return, or filed separately. The IRS says the online process generally takes about five to 10 minutes and requires the child’s Social Security number, date of birth, address, and the filer’s identity verification.

Once the election is processed, the parent or legal guardian should receive instructions to complete the account setup and activate the account. The account is owned by the child but managed by the authorized adult during the child’s minority years. Contributions can then be invested under the account’s rules, with the goal of giving the child a long-term financial head start.