By: NewbornCry Editorial Team Verified by: IRS Notice 2025-68 & OBBBA Federal Statutes
Note to Readers: The information provided in this article is accurate as of January 28, 2026, based on current IRS Notice 2025-68 and the federal guidelines of the “One Big Beautiful Bill Act” (OBBBA). Please be aware that government policies, tax forms, and legislative rules are subject to change. NewbornCry does not assume any responsibility for updates or amendments to the law that may occur after this date. We strongly recommend visiting the official government portal at www.irs.gov or consulting with a certified financial advisor before making any financial decisions.
The financial landscape for American parents has changed. Under the “One Big Beautiful Bill Act” (OBBBA), a new tax-advantaged tool called the Trump Account (Section 530A) is officially live. If you have a child born between 2025 and 2028, you are likely eligible for a $1,000 government-funded deposit.
What is a Trump Account?
It is a custodial-style Traditional IRA for minors. While it functions similarly to a 529 plan or a Roth IRA, it is unique because the federal government provides the initial “seed money” for newborns to encourage long-term wealth building.
The 100% Fact-Checked Reality
| Feature | Official 2026 Data |
| Government Seed Money | $1,000 (One-time, for babies born 2025-2028). |
| Annual Contribution Limit | $5,000 total (Combined from Parents & Employers). |
| Employer Match | Up to $2,500/year (Counts toward the $5k limit). |
| Key Form to File | IRS Form 4547 (Election to Establish a Trump Account). |
| Official Portal | trumpaccounts.gov (Registration active now). |
| Withdrawal Rules | Locked until age 18. (No early access except for death/disability). |
How to Apply: The Step-by-Step Process
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File IRS Form 4547: You can submit this form along with your 2025 Tax Return (which you are filing now in early 2026). This form makes the formal “election” for the $1,000 pilot contribution.
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Wait for Authentication: Starting in May 2026, the Treasury will contact parents who filed Form 4547 to authenticate their identity.
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Account Activation: The official portal at
trumpaccounts.govwill allow for full account management starting July 5, 2026. -
Automatic Investment: The funds must be invested in low-cost index funds (like the S&P 500) to ensure long-term growth.
Trump Account vs. 529 Plan: Which is Better?
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Trump Account: Best for retirement and long-term wealth. Withdrawals after age 18 are taxed as ordinary income.
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529 Plan: Best for education. Withdrawals for college are 100% tax-free.
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Expert Advice: Financial analysts at Fidelity and Vanguard suggest using the Trump Account to capture the $1,000 government “free money” first, while maintaining a 529 for college needs.
Why This is Not a Viral Myth
While social media often exaggerates claims, the Internal Revenue Service (IRS) has officially released the final instructions for Form 4547. This is a legislated federal program. Any blog claiming this is “fiction” is using outdated information from 2024.
About the Author: NewbornCry Editorial Team
The NewbornCry Team provides research-backed news for parents worldwide. Our reports are built directly from IRS.gov, Treasury.gov, and White House Council of Economic Advisers data. We cross-verify every tax form and legal statute before publication to protect our readers’ trust.
Legal Disclaimer
Disclaimer: This article is for informational purposes and does not constitute financial, legal, or tax advice. While based on the One Big Beautiful Bill Act and IRS Notice 2025-68, federal regulations are subject to change. Always verify with a certified tax professional or visit www.irs.gov.
Further Reading: Now that your child’s finances are on track, make sure their nursery is too. Don’t miss our comprehensive guide: [Newborn Must-Haves: The Essential, Expert-Backed Checklist for New Parents].