The federal government will drop $1,000 into an investment account for every U.S. citizen born between 2025 and 2028[1]. Twenty-three employers have committed to matching with more[2]. Here's what it is, who gets it, and how to claim.
The short version
- Every U.S. citizen child born 2025 through 2028 gets a $1,000 federal Trump Account seed, no application required.
- 23 major employers — JPMorgan Chase, Intel, Uber, and 20 more — have committed to matching with their own contributions.
- Families can add up to $5,000 per year per child on top of the federal seed.
- Connecticut kids under 10 get an extra $250; the Michael & Susan Dell Foundation is funding more.
- The money sits in a broad U.S. index fund until the child turns 18. Check what your family qualifies for with the eligibility tool below.
What Trump Accounts are
Trump Accounts are federal investment accounts for children, created by the One Big Beautiful Bill Act in 2025[1]. Congress wrote the program to put a stake in the stock market into the hands of every eligible newborn from day one.
Every U.S. citizen child born in 2025, 2026, 2027, or 2028 is automatically enrolled[3]. The Treasury deposits $1,000 into the account. The money sits in a broad U.S. stock index and tracks the market until the child turns 18.
The account is custodial: a parent or legal guardian controls it while the child is a minor. Once the kid turns 18, they take over. Contributions from the family, an employer, a state, or a private foundation all stack on top of the federal seed, up to a yearly cap.
That's the whole mechanic. No lottery, no means test, no income cliff. If your kid was born in the eligibility window and you file a tax return with the child's Social Security number, the $1,000 is theirs — the IRS sets up the account in the background[4].
Who qualifies
The eligibility rules are narrow and specific. A child qualifies for the federal $1,000 seed if all three conditions are true[1]:
- Born between January 1, 2025 and December 31, 2028.
- Has a Social Security number issued before the parent's tax return is filed.
- Is a U.S. citizen — not a permanent resident, not a visa holder.
Both parents (or the single filing parent) must also have Social Security numbers[4]. A child born to an ITIN-only household does not qualify even if the child is a U.S. citizen by birth.
Adoptions count, but the timing matters. A child adopted into a qualifying U.S. household gets the seed only if the adoption is finalized within the 2025–2028 window AND the child's Social Security number is in place at the time of the parents' next tax filing[4]. The IRS has not yet published detailed guidance on foreign adoptions where the SSN is issued late, so that case remains in flux.
Kids born abroad to U.S. citizen parents who later return home: eligible, as long as citizenship and the SSN are documented before the tax return is filed.
Kids born in December 2028 vs. January 2029: a one-day difference means $1,000 or nothing. The statute does not phase out; it cuts off. The full eligibility breakdown walks through every one of these edge cases — adoptions, kids born abroad, mixed-status households, the December cutoff — with the specific paperwork required for each.
One more wrinkle: the $1,000 seed is not taxable income to the parents[4]. You won't see it on your W-2 or a 1099.
How the federal $1,000 seed works
The Treasury funds the $1,000 seed per eligible child through an annual appropriation[1]. The money routes through a custodial financial agent — BNY Mellon was named the program's primary financial agent in late 2025[2]. Parents don't choose the custodian for the federal seed; it's the same custodial shell regardless of state.
The default investment is a broad-market U.S. index fund. The statute requires the seed to be invested in a passively managed fund tracking a broad domestic equity index[1]. Parents can't move the federal seed into individual stocks, sector funds, or international equity before the child turns 18 — the index default is locked in until then.
Vesting is immediate. There is no multi-year schedule. The child owns the full $1,000 the day the account opens.
The account also accepts contributions from the family, from an employer match, from a state program, or from a private foundation — all into the same custodial shell[1]. Those follow-on contributions are subject to an annual cap, covered below.
Nothing is required to claim the seed beyond filing a tax return and claiming the child as a dependent in the year of birth[4]. The IRS and Treasury coordinate the account opening in the background. If you file early, the account is usually active within 90 days of the return being accepted.
Employer matching
Twenty-three employers have publicly committed to matching Trump Account contributions for eligible employees[2]. The match is an optional benefit on top of the federal $1,000, and most committed companies are offering a flat $1,000 per eligible child per year.
The banking and brokerage side of the list is dense. JPMorgan Chase, Bank of America, Wells Fargo, Charles Schwab, BNY Mellon, and State Street have all announced matches[5][6][7]. JPMorgan's plan is the most detailed public document today — how the JPMorgan Chase match works has the breakdown.
Tech is well represented. Intel, Dell Technologies, Broadcom, and IBM are on the list[8]. Uber named employee families as the target for the benefit when it committed[9]. Fintech committed at scale: SoFi, Chime, Block, Robinhood, Visa, Mastercard, and Coinbase are all in[10]. Russell Investments joined the investment-firm side. Charter Communications and Comcast cover big chunks of the telecom workforce. Chipotle and Steak 'n Shake are the restaurant names on the list — and the only quick-service chains to commit so far.
Across every committed employer, the match works the same way for the family: the company deposits its contribution into the child's Trump Account on top of the federal seed. The employer contribution counts toward the $5,000 annual cap covered in the next section[1], so a family that gets the federal $1,000 plus a $1,000 employer match has $3,000 of family contribution room left for the year.
A few practical notes. Most employer plans require the employee to be full-time and to have the child claimed on the employee's tax return. Enrollment mechanics vary by company — some require a benefits-portal action, some trigger automatically when the child is added to health coverage. Confirm with HR what proof of the child's SSN they need and by when. Match timing usually follows the payroll cycle closest to the account opening.
State and private programs
State-level add-ons are thin so far. Connecticut is the only state with a concrete program: the Dalio Family Gift will top up every Connecticut child under 10 with an extra $250[11]. The Dalio contribution goes directly into the child's Trump Account and does not count against the federal $1,000 or the family's $5,000 annual cap.
Private philanthropy is bigger than any state program today. The Michael & Susan Dell Foundation committed a landmark gift to supercharge Trump Accounts for kids of families below a stated income threshold[12]. The foundation's money routes through the same custodial structure as the federal seed.
Other states have indicated interest but not put budget behind it yet. California, Illinois, New York, and Texas have each floated Trump-Account-adjacent proposals in state-level budget cycles, but none has enacted legislation. If you hear of a local program in your state, check whether it flows into the federal Trump Account versus a parallel state 529 — the two don't mix.
If your kid is eligible for the federal seed plus a state or foundation top-up, the simplest check is to run their details through the eligibility tool. The tool covers the federal seed, state add-ons, and the 23 committed employer matches.
Contribution limits and tax treatment
The family's annual contribution cap is $5,000 per child[1]. That number is total across all contributors to the child's account in a calendar year — parents, grandparents, an employer match, a state top-up, and a private grant all share the same $5,000 bucket.
The federal $1,000 seed sits outside the cap in the year the child is born[1]. Think of the seed as free space: in the child's first tax year, a family can add up to $5,000 of their own money on top of the seed. An employer's match still counts toward that $5,000 ceiling.
The tax treatment looks like a Roth-style account for kids. Contributions are made with after-tax dollars; the money grows tax-free inside the account; qualified withdrawals after age 18 are not taxed[4]. There is no federal income-tax deduction for family contributions — you don't get to write off the $5,000 on your return.
The employer match is treated as a contribution to the child's account, not as taxable income to the parent[4]. You will not see the match on your W-2.
The federal $1,000 seed is also not taxable to the parent or the child in the year it is deposited. The growth inside the account compounds tax-free until the child takes a qualified distribution.
State tax treatment varies. Some states follow the federal treatment; others may tax growth or contributions depending on the state income-tax code. The IRS has not published a state-by-state table, so check with a tax professional in your state before assuming your state conforms.
Withdrawal rules
The child cannot touch the money until age 18[1]. The account is locked — no loans against the balance, no early withdrawals for education or medical expenses, no exceptions for financial hardship on the part of the parent.
At age 18, the child takes control of the account. From that point forward, qualified distributions are tax-free. The statute defines qualified uses broadly: higher education, first-home purchase up to a lifetime cap, small-business formation, and standard retirement-style withdrawals after age 59½[1].
Non-qualified withdrawals — taking the money out for something outside the qualified categories — are taxed as ordinary income plus a 10% penalty on the earnings portion[4]. The principal (the $1,000 seed plus family contributions plus employer matches) is not taxed on withdrawal; only the growth is.
A few edge cases worth flagging. The IRS has not yet published guidance on what happens to the account if a child emigrates or renounces U.S. citizenship before age 18 — Treasury's implementation memo lists this as an open question[2]. Death of the account holder follows inherited-IRA-style rules: the account passes to a named beneficiary and continues growing tax-free.
Rollover into a Roth IRA is permitted once the child has earned income[4]. The IRS has not yet issued the exact rollover mechanics, but the statute contemplates a direct trustee-to-trustee transfer with no tax consequence — similar to how unused 529 funds can roll into a Roth for the beneficiary.
How Slyce fits
Slyce is building a Trump Account product: a custodial brokerage that lets parents track the federal seed and pair it with Slyce's spend-to-own mechanic for every eligible kid in the household. It's not live yet.
The core idea for the Slyce version: the $1,000 federal seed handles the index exposure the statute requires, and parents layer in spend-to-own contributions from their own shopping. Every time you buy from Apple, a little goes to the child's account as a slyce of AAPL — on top of the federal $1,000, inside the same $5,000 annual cap.
Slyce is not a financial advisor. We are not telling you to open a Trump Account over a 529 or a custodial Roth. The rules described here are the federal program's rules, not Slyce advice. A Trump Account is one of four kid-investment account types; the comparison spokes linked in Next steps below walk through the tradeoffs versus a 529, a UTMA, and a custodial Roth IRA.
We are pre-launch. Join the waitlist below for first access when the Slyce Trump Account product ships. The federal $1,000 seed is available to eligible kids today — you don't need Slyce to claim it. The eligibility checker confirms what your family qualifies for right now.
Frequently asked questions
How much does the federal government put into a Trump Account? The Treasury deposits $1,000 per eligible child, one time, in the year of the child's birth[1]. The deposit happens after the parent files a tax return claiming the child as a dependent. Additional federal contributions are not planned in the current statute — the $1,000 is a one-shot seed, not an annual credit.
Who is eligible for the Trump Account program? U.S. citizen children born between January 1, 2025 and December 31, 2028 with a Social Security number, claimed as a dependent by parents who also have Social Security numbers[4]. The child must be a citizen, not a permanent resident or visa holder. Adoptions finalized inside the eligibility window also qualify. A child born one day after December 31, 2028 is not eligible.
Do I have to apply to claim the federal $1,000? No formal application. The IRS and Treasury open the account automatically after you file a tax return with the child claimed as a dependent and the child's Social Security number attached[4]. The account is usually active within 90 days of the return being accepted. There is no form to fill out and no waiting list to join.
How much can a family contribute per year? $5,000 per child per year, total across all contributors[1]. That cap includes parents, grandparents, an employer match, state top-ups, and private grants — all combined. The federal $1,000 seed is outside the cap in the child's first year, but every dollar in subsequent years counts against the $5,000 ceiling until the child turns 18.
Does the employer match count against my family's annual cap? Yes. The $5,000 annual cap applies to total contributions into the child's account, including any employer match[1]. A $1,000 match from a participating employer uses $1,000 of the $5,000 ceiling. Families at full-match employers typically have $4,000 of personal contribution room left for the year after the employer's match is deposited.
Can a grandparent contribute to a Trump Account? Yes, and the contribution does not trigger federal gift-tax reporting for amounts within the standard annual gift-tax exclusion[4]. Every grandparent dollar counts against the same $5,000 per-child annual cap, so coordinate with the child's parents to avoid going over. Grandparent contributions are made with after-tax dollars; there is no federal deduction for the grandparent.
Can a Trump Account roll into a Roth IRA later? The statute permits a rollover into a Roth IRA once the child has earned income, similar to the unused-529-to-Roth rollover structure[4]. The IRS has not yet published the exact rollover mechanics or annual limits. The rollover is designed to be tax-free when executed as a direct trustee-to-trustee transfer. Check IRS guidance before initiating a rollover.
Next steps
Start by checking what your kid qualifies for with the one-minute eligibility tool — it confirms the federal seed, state add-ons, and every committed employer match for your family. From there, Trump Account vs. 529 walks through the tradeoffs against the default kid-saving account, and the UTMA and custodial Roth IRA comparison spokes cover the other two options for your $5,000-a-year contribution room. If you want to sketch the 18-year arc, the Slyce calculator has the knobs.
More on Trump Accounts
Explainer
Trump Account eligibility: who qualifies for the $1,000 seed
A plain-English breakdown of who qualifies for the $1,000 federal Trump Account: birth window, citizenship, SSN rules, and the edge cases.
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JPMorgan Chase Trump Account Employer Match
How JPMorgan Chase's Trump Account employer match works for employees, how much the match is worth, and how it stacks with the federal $1,000 seed.
Comparison
Trump Account vs. 529: which account fits your kid's money?
Trump Account vs. 529: seed amount, contribution caps, tax treatment, qualified uses, and how to pick. Honest tradeoffs, primary-source citations.
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Custodial account vs. 529 plan: which one fits?
A custodial account flexes for any goal but taxes the earnings. A 529 grows tax-free for school. Here is the side-by-side and a fourth option parents miss.
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Published Apr 14, 2026 · Updated Apr 14, 2026