The U.S. government is giving eligible children a free $1,000 to kickstart an investment account. It's called the Invest America Account, but most people know it as the Trump Account. And yes, it's real.
If you have kids, this is worth two minutes of your time.
Where does the $1,000 come from?
Congress passed the One Big Beautiful Bill Act in 2025. Part of that law created a new type of tax-advantaged investment account for American children. The government seeds eligible accounts with $1,000 at no cost to the family.
That $1,000 goes into an account invested in low-cost index funds. It grows tax-deferred. Your child can't touch it until they turn 18, at which point it converts to a traditional IRA.
Who gets the $1,000?
Not every child qualifies for the seed contribution. Here's exactly who does:
Any child born between January 1, 2025 and December 31, 2028 who is a U.S. citizen with a Social Security Number is eligible for the $1,000 government deposit.
If your child was born before 2025, they don't get the $1,000 seed. But they can still open a Trump Account. The tax advantages and contribution rules apply to them the same way.
So if you have a newborn or a child born in 2025 or later, don't miss this.
Can you add money on top of the $1,000?
Yes. Families can contribute up to $5,000 per year into the account from all sources combined. That includes parents, grandparents, other family members, and even employers (up to $2,500 of that limit).
The government seed doesn't count toward the $5,000 cap, so you get the full annual contribution room on top of the free $1,000.
To put that in perspective: $1,000 seed plus $5,000/year, growing at an assumed 6% annual return, gets to roughly $191,000 by age 18. Left alone in an IRA until age 60, that's in the range of $2.2 million. See the full breakdown of how much your child can receive.
How do you open one?
There are two ways. For a full walkthrough, see how to open a Trump Account for your child.
Option 1: File IRS Form 4547 with your 2025 tax return. The deadline is April 15, 2026.
Option 2: Use the online portal at trumpaccounts.gov when it opens in mid-2026.
The account officially launches July 5, 2026. Filing Form 4547 before April 15 is how you lock in eligibility ahead of that date.
When can your child access the money?
Withdrawals aren't allowed before age 18, with a few narrow exceptions like a first home purchase, medical expenses, or disability. At 18, the account converts to a traditional IRA and follows standard IRA rules from there.
That's actually a feature, not a bug. The whole point is that this money grows untouched for years.
How is this different from a 529?
A 529 plan is for education expenses specifically. If your kid doesn't go to college, you have limited options with that money.
A Trump Account has no restriction on how the money is used after 18. It converts to an IRA, so your child can use it for retirement, a house, or anything a traditional IRA allows. The two accounts can complement each other if you're building a full financial picture for your child.
What does Grifin have to do with it?
Grifin is not affiliated with the government program. But we do help families understand and prepare for it.
Once financial institutions are allowed to hold Trump Account balances (expected after July 2026), we'll offer a rollover option so families can manage their accounts through Grifin. In the meantime, Grifin lets you start investing in the brands where you already spend money, so you don't have to wait. Not sure if this program is the right fit? Here's a practical guide to help you decide.
Find out if your child qualifies at investamericaquiz.com. It takes about 30 seconds.
Still have questions? Here's every question we're seeing people ask about Trump Accounts.
This post is for educational purposes only and is not tax, legal, or investment advice. Grifin is not affiliated with the U.S. government or the Invest America program.
