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The IRS and the Department of Treasury released a series of rules regarding eligibility and procedures for Trump Accounts yesterday.<\/p>\n
Under the Trump Accounts, which were part of the \u201cBig, Beautiful Bill,\u201d the federal government will mark the birth of U.S. citizens by depositing $1,000 into a deferred, low-cost index fund, The Daily Wire previously reported<\/a>. While the accounts start at $1,000, families and others can contribute up to $5,000 total per year per child, including employer contributions.<\/p>\n Parents have until Dec. 31 of the calendar year in which their child turns 17 to open the initial account, the IRS said in a press release.<\/p>\n \u201cTrump Accounts are a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up this generation and generations to follow and unlock the American Dream,\u201d IRS Chief Executive Officer Frank J. Bisignano said in the release. \u201cCreating Trump Accounts was one of the most important provisions in President Trump\u2019s historic One, Big, Beautiful Bill, and these regulations are an example of the hard work of Treasury and the IRS in developing the guidance needed to ensure that eligible families can take advantage of Trump Accounts.\u201d<\/p>\n Parents can open the account with Form 4547 when filing taxes or through a separate online portal<\/a>, the IRS said. Instructions for opening an account can be found online<\/a>. The IRS said the person who opens the account will be responsible for it.<\/p>\n For a child to be eligible for the accounts, he must have been born between 2025\u20132028, be a U.S. citizen, and have a valid Social Security number.<\/p>\n Parents can choose to receive the initial $1,000 when they open the account. If they choose not to claim it then, individuals who can claim the pilot amount are, in order: a legal guardian, a parent, an adult sibling, and a grandparent.<\/p>\n \u201cIt is a trust fund, a piece of the American economy for every child that they will be able to take out when they are 18, or they could convert it to a more IRA-type program,\u201d Treasury Secretary Scott Bessent said<\/a> in December.<\/p>\n In February, Bessent said about two million forms for three million children have been filed for the Trump Accounts, according<\/a> to CNBC.<\/p>\n \u201cThey\u2019ll be getting a big jump on life,\u201d President Donald Trump said last year of the babies benefitting from the accounts.<\/p>\n The program will officially launch in July 2026.<\/p>\n<\/div>\n