Is the $1,000 Government Seed Money for Trump Accounts Worth Claiming?

By Matthew Benjamin – Mar 17, 2026 at 7:57AM ESTKey PointsSo-called Trump Accounts are IRAs designed for kids.Opening an account and claiming the benefit couldn't be easier.There's a new government benefit for children born in 2025 or later. I'm talking about the Trump Accounts that were established in last year's One Big Beautiful Bill Act. These are tax-advantaged savings accounts for children under 18, though only children who are U.S. citizens are eligible. If your child was born in 2025 or later, they're also eligible for a $1,000 government-seeded contribution to the account. Is this benefit legitimate and worth claiming? Absolutely! Despite the name, the initial investment into your child's account comes not from the president, but from the American people. It's basically a tax-advantaged individual retirement account (IRA) designed specifically for children. If you pay federal income taxes, you, too, are funding these accounts, so you should help your child claim their share. Image source: Getty Images. Opening an account and claiming the seed investment couldn't be easier How do new parents go about claiming the money? It's easy. You just need to gather a bit of information: Your child's date of birth Your contact information Social Security numbers for you and your child Then pull up Form 4547 and fill in the form with that information. It's very simple and straightforward, so those who hate paperwork (like I do) don't need to be anxious about it. In addition, you can add multiple children on the same web page. It's all done online, so there's no printing out forms or faxing. After that, you'll be contacted by a trustee with whom your Trump Account will be established. They will provide further instructions about how to complete the account setup. Once you've successfully opened the account, you (as a parent), other adults, or employers can contribute up to a combined $5,000 a year per child in 2026 and 2027. Those funds will be invested by the trustee in relatively safe index funds, like those that track the entire S&P 500 index of large-cap U.S.-listed companies. Your child can withdraw funds from the account once they turn 18, though the same contribution and withdrawal rules that govern traditional IRAs apply to these accounts. This is money every new parent can and should claim. It will help your child enter adulthood with a bit more financial security -- and perhaps even some early knowledge about saving and investing. Don't delay opening this account. You can find more details on them by reading The Motley Fool's Trump Accounts guide.Read NextMar 17, 2026 •By Maurie BackmanThis Medicare Enrollment Mistake Could Cost You for YearsMar 17, 2026 •By Bram BerkowitzIf Your Child Was Born in 2025 or Later, the One Big Beautiful Bill Has a New Savings Benefit for YouMar 17, 2026 •By Dana George5 Medicare Myths That Are Costing Seniors Thousands Every YearMar 17, 2026 •By Maurie BackmanThe Average 401(k) Balance Today May Surprise YouMar 17, 2026 •By Matt Frankel, CFPThe Hidden Retirement Killer Nobody Budgets ForMar 17, 2026 •By Matthew BenjaminWas Your Child Born Since January 2025?

Here Is How to Claim a Trump Account Benefit.About the AuthorMatthew Benjamin is a contributing Motley Fool stock market and investing analyst covering publicly-traded companies across all sectors. Prior to The Motley Fool, Matt was a senior markets expert at an investing newsletter in Baltimore, an editorial consultant to the World Bank and the International Monetary Fund (IMF), and an economics correspondent at Bloomberg News. He holds a B.A. from Bucknell University and an M.A. from New York University. Fun fact: Matt has met every Federal Reserve Chair from Paul Volcker through Jerome Powell.TMFMbenjamin68