A major change is coming to millions of American families — and it could mean a $1,000 check landing directly into your bank account without you lifting a finger. It is part of a new plan signed into law by President Donald Trump. If you are wondering whether you or your child qualifies and when the money will arrive, here is what you need to know.
What is the Trump Account and how does it work?
This is a new government-backed savings program meant to support the next generation of Americans. The goal is to help children build wealth early and prepare for long-term financial success.
Here is what the Trump Account is all about:
- Every U.S.-born child under the age of 18 who is born between January 1, 2025 and December 31, 2028 will automatically receive $1,000
- The money goes into a government-established investment account called the Trump Account
- These accounts are designed to grow with the child and can be accessed once the child turns 18
- The money must be invested in low-cost stock mutual funds or exchange-traded funds (ETFs)
The Trump Account was originally called the “Money Accounts for Growth and Advancement,” also known as MAGA, but was later renamed.
Who qualifies for the $1,000 payment?
You do not need to fill out any form or meet any income requirement to qualify. The process is automatic, but it does come with a few important guidelines.
To qualify, the child must:
- Be born in the United States between January 1, 2025 and December 31, 2028
- Have a valid Social Security number
- Be under the age of 18
- Only one Trump Account can be opened per child
Parents will not have to apply. As long as the child is born within the required dates and has a Social Security number, the $1,000 will be deposited automatically into the account.
When will the $1,000 be deposited?
If you are expecting a child in 2025 or after, here is what you can expect:
- The $1,000 will be deposited shortly after the birth of the child
- Once the Social Security number is issued, the deposit process begins
- Deposits are expected to start early 2025, depending on how quickly the IRS and other agencies complete the setup
If your baby is born and you already have their Social Security number, the check should show up in the account within a few weeks.
Can parents or employers add more money to the account?
Yes, and that is where it gets even more powerful. In addition to the $1,000 government deposit, others can contribute too. Parents and employers can contribute up to $5,000 per year until the child turns 18. Contributions are not tax-deductible, except up to $2,500 per year from employers, which will not count as taxable income. The money will grow through investment, allowing for compound growth over the years
This gives families an opportunity to build significant savings for education, homeownership, or even retirement starting from birth.
What happens when the child turns 18?
When the child turns 18, they will have access to their Trump Account. However, there are rules on how the money can be used. The account will convert into a traditional IRA. Withdrawals before age 59.5 are taxed and may face a 10% penalty.
- The penalty can be waived if the money is used for:
- Higher education
- The birth of a child
- Buying a first home
- Higher education
According to IRA analyst Ian Berger, the Trump Account is structured to give kids a serious head start on financial security and retirement savings.
Why is this being done?
The White House and financial experts say this is about preparing the next generation for success. In a statement, President Trump said this will “fuel massive economic growth” and help everyday Americans thrive.
Goldman Sachs CEO David Solomon added, “This initiative gets at the core of binding those future generations to the benefits and the potential of America’s great companies and markets.”
So if you are expecting a child — or know someone who is — this could be a game-changer.
