If you welcomed a baby in 2025 — or plan to between now and 2028 — there’s a new federal savings program you’ll want on your radar.
Under the One Big Beautiful Bill (OBBB), the government introduced a long-term investment account designed to help children begin building wealth from birth. Often referred to as the Trump Savings Plan or Trump Account, this program provides eligible children with a financial head start that can grow for nearly two decades before they ever access it.
Here’s what parents need to know.
The Trump Savings Plan is a government-seeded, tax-deferred investment account created for children.
Each eligible child receives a one-time $1,000 federal contribution, which is invested in broad U.S. stock index funds and allowed to grow over time. Parents, relatives, and even employers can also contribute annually, making this a powerful long-term savings tool.
Think of it as a set-it-and-grow-it account designed to help children reach adulthood with real financial assets.
A child qualifies for the Trump Savings Plan if they:
This means babies born in 2025, 2026, 2027, or 2028 are all eligible.
There are no income limits for parents or guardians.
Although eligibility is determined at birth, accounts officially become available starting in mid-2026.
Parents or legal guardians must affirmatively open the account — it is not created automatically. Once established, the government’s $1,000 contribution is deposited and invested on the child’s behalf.
Families and other contributors can add up to $5,000 per year per child until the child turns 18.
This annual limit may include contributions from:
The $1,000 government seed contribution does not count toward the annual $5,000 cap.
Until age 18, the funds are generally locked and managed by a custodian. After that, the account typically converts into a traditional IRA owned by the child.
At adulthood, funds may be used for:
Taxes and penalties depend on how and when withdrawals are made, similar to other retirement-style accounts.
This program represents a shift toward long-term asset building, rather than short-term tax credits.
With time, even a modest $1,000 investment — combined with optional annual contributions — can grow substantially through compound returns. For families already saving for their children’s future, this account adds another structured, tax-advantaged option.
If your child was born between 2025 and 2028, this is an opportunity worth paying attention to.
The most important step is simply knowing it exists — and being ready to act once accounts officially open. For many families, this could be one of the easiest ways to give their child a meaningful financial head start.
