New IRS Guidelines: How Families Can Receive $1,000 for Children’s Savings Accounts

• Author: Miguel Waters
• Posted: 2026-03-10

The IRS and the U.S. Treasury Department have shared new details about a program called Trump Accounts. These are special savings accounts for children that come with a one-time $1,000 deposit from the federal government.

The program was created by a 2025 law known as the "One Big Beautiful Bill Act." Its main goal is to help children start building personal wealth from a young age through tax-free or tax-reduced savings.
 

How the $1,000 Payment Works

If a child is eligible, the government will put $1,000 into a newly opened account. While the government provides the initial boost, families can also add their own money to the account over time to help it grow.
 

Who is Eligible?

To qualify for the $1,000 government deposit, a child must meet these four requirements:
 

• Birth Date: Must be born between the years 2025 and 2028.
• Citizenship: Must be a U.S. citizen.
• Identification: Must have a valid Social Security number.
• First-timer: The child cannot have received this specific government payment before.

 

How to Open an Account

Parents or guardians can set up the account using IRS Form 4547. To make it easy, the IRS will allow you to submit this form when you file your yearly tax return or through an online portal.

You have plenty of time to apply: families can request the deposit any time up until December 31 of the year the child turns 17.
 

Rules for the Money

Because these accounts are meant for long-term growth, there are specific rules on how the money is handled:
 

• Investment Choices: The money must be invested in "index funds" or "ETFs" that track the U.S. stock market.
• Withdrawals: You generally cannot take money out until the child turns 18. After that, the account works similarly to a traditional IRA (Individual Retirement Account).
• Contribution Limits: Families and employers can add more money to the account, but the total added cannot exceed $5,000 per year.
• Employer Perks: If a company helps an employee by contributing to their child’s account, the business can add up to $2,500 a year without that money being taxed as income for the employee.

 

Important Dates

While the IRS is releasing the rules now so families can prepare, the accounts will not officially begin accepting deposits until July 4, 2026.

IRS Chief Frank J. Bisignano stated that these regulations are designed to ensure the process is smooth so that every eligible family can take advantage of the program.

According to Treasury Secretary Scott Bessent, millions of families have already begun filling out the necessary forms in anticipation of the launch.

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Read more: IRS Warning: Using TurboTax Could Lead to Penalties for Some Taxpayers