Tax Implications of $1,000 ‘Trump Accounts’ for Children

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Tax Implications of $1,000 ‘Trump Accounts’ for Children

A child holds up an American flag as Republican presidential candidate former President Donald Trump speaks during a campaign rally at Saginaw Valley State University in Saginaw, Mich., on Oct. 3, 2024. Jim Watson/AFP via Getty Images

A new tax-advantaged savings program created under President Donald Trump’s One Big Beautiful Bill Act is set to give American newborns a financial head start, while potentially adding some complexity to family finances and tax planning.

Under the bill, babies born in the United States between Jan. 1, 2025, and Dec. 31, 2028, will receive $1,000 from the federal government deposited into newly created “Trump Accounts,” investment vehicles modeled loosely on individual retirement accounts (IRA).

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