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Did you claim your child's first grand?
Children born from 2025 through 2028 can get $1,000 from the US Treasury in a new Trump Account. Most parents don't know it isn't automatic. Find out in under a minute if your child qualifies, and exactly how to claim it.
The basics in 60 seconds
$1,000 for babies born 2025–2028
A one-time deposit from the US Treasury. It is not automatic: a parent has to request it.
Up to $5,000 a year
Family and employers can add money every year. Employers can put in up to $2,500 of it, tax-free to you.
Invested in US stock index funds
Only low-cost funds of American companies, with fees capped at 0.1% a year.
Locked until 18
Then the account becomes your child's. Growth is taxed as income when it comes out, with no penalty for education or a first home.
Saving for college? Read this first.
On financial aid forms, a Trump Account counts as your child's money, assessed at up to 20%, while a parent-owned 529 is assessed at up to 5.64%. For many families the smart move is: claim the free $1,000, then put new college savings in a 529. Run your numbers below.
Trump Account or 529? Run your numbers.
You'll claim the free $1,000 either way. The real question is where your monthly savings should go. See both plans side by side at age 18.
Change the assumptions
| At age 18 | Plan AEverything into the Trump Account | Plan B$1,000 in Trump, monthly in a 529 |
|---|---|---|
| You put in | $21,600 | $21,600 |
| Grows to | $41,672 | $41,672 |
| Tax when spent on college | −$2,007 | −$294 |
| Less first-year aid (estimate) | −$8,334 | −$2,772 |
| Left for college | $31,331 | $38,606 |
Plan B leaves about $7,275 more for college.
Both plans grow the same money at the same rate, so the difference comes from the rules. A 529 is tax-free for college, while Trump Account growth is taxed as your child's income, and financial aid counts a Trump Account at up to 20% of its value versus 5.6% for a parent's 529. Either way, claim the free $1,000: it costs you nothing.
Where a Trump Account can make sense: if the money may go to a first home or retirement rather than college, if an employer contributes, or once you've reached what you want in a 529. Many states also give a tax deduction for 529 savings, which this does not include.
An illustration, not a forecast or advice. Assumes 6% yearly growth for both accounts, deposits every month until 18, and that the money is spent on college. Trump Account family contributions come back tax-free; growth and the $1,000 are taxed at 10%. Financial aid is a first-year estimate at the maximum assessment rates, and final federal guidance on Trump Accounts is still pending.
Questions parents ask
- Is the $1,000 Trump Account deposit automatic?No. Even if Treasury opened an account for your child, you have to claim the money.
- Trump Account or 529: which is better for college?For college, a 529 usually leaves more. Claim the free $1,000 anyway.
- What happens to a Trump Account when my child turns 18?The account becomes theirs. Money can come out, with tax on the growth.
- Can grandparents and employers add money to a Trump Account?Yes. Up to $5,000 a year in total, and an employer can put in up to $2,500 of it.