Baby's first Christmas: a gift that grows

A Trump Account is a tax-deferred investment account for a child.

The IRS describes it as a new kind of traditional IRA, with extra rules while the child is young. Growth is not taxed each year while it stays in the account. A child can have one even if they do not qualify for the $1,000 Treasury deposit.

Some children can receive a one-time $1,000 from the U.S. Treasury.

The child must be a U.S. citizen, born from January 1, 2025 through December 31, 2028, with a valid Social Security number. Opening the account does not include this deposit. A parent still has to elect it on IRS Form 4547, and Treasury says the account has to be claimed before the deposit can be received. It does not count toward the $5,000. A child born in another year does not get this deposit and can still have a Trump Account.

The child generally cannot take the money out while the childhood rules apply, and those rules end by age 18.

The IRS says amounts generally cannot be withdrawn before January 1 of the year the child turns 18. After that date, the account follows ordinary traditional IRA rules. The program website says the money stays unavailable until the child turns 18, and that the account becomes a traditional IRA in the child's name then. January 1 of that year and the birthday are not always the same day, so this does not name one unlock date. The child owns the account the whole time.

On the official site, you pay from a linked bank account or a debit card.

Paper checks, wire transfers, credit cards, and prepaid cards are not accepted. The program says most US-issued Mastercard, Visa, and Discover debit cards are supported. Bank linking uses a routing number and ACH. A recurring gift can be set up only from a bank account. Contributions could not be made before July 4, 2026.

A debit-card gift usually arrives within minutes and can take up to 30 minutes. A bank transfer can take up to five business days.

The program says a debit-card contribution is typically processed instantly, and may take up to 30 minutes depending on the bank. A standard bank contribution can take up to five business days and shows as pending until it settles.