Trump Accounts - Free $1000 for your Baby
How a Rare Government Gift Could Give Your Kids a Financial Head Start
Glen Shepard Issue #1084
February 24, 2026
Reading Time: 2 minutes 37 seconds
Ronald Reagan famously said…
"The nine most terrifying words in the English language are: I'm from the government and I'm here to help".
Regardless of whether you’re a Republican or Democrat, one thing we can agree on is how rare it is that the government makes our lives significantly better— especially when it comes to money.
Another is that we all want the best for our kids.
One of those once-in-a-generation events just happened, and it will give your kids or grandkids a financial head start most of us didn’t have.
Unfortunately, a lot of Americans never even heard about it.
And most of those that did don’t know how to take advantage of it, which is where you can be a hero. (Make sure to read this entire article and I’ll show you how at the end.)
They’re called Section 530A accounts.
Parents, grandparents, or legal guardians of children under the age of 18 can open one and contribute up to $5,000 annually.
That money is then invested in the stock market, and the child can’t access it before 18.
But here’s where it gets good…
If the child was born after January 1, 2025, the federal government will throw in $1,000 of seed money to jump start the account.
Even if you never put in a dime of your own money, the balance is expected to be around $6,000 by the time the child turns 18.
If you put in $250 a year, it’s expected to be around $19,000.
And it keeps going up.
Here’s where it gets better…
Michael Dell (founder of Dell Computer) in Texas has already donated $6.25 billion to infuse $250 of seed money for kids up to age 10.
Billionaire Ray Dalio in Connecticut has donated $75 million to do the same for children in Connecticut, and more wealthy philanthropists are expected to follow.
Companies are also jumping in.
Eleven have stepped up so far, including Uber, Visa, MasterCard, and Charles Schwab. And more are expected to follow.
Here’s how to get started…
Download IRS Form 4547 from www.irs.gov/pub/irs-pdf/f4547.pdf and file it with your 2025 tax return. (If you already filed, you can do an amended return).
Here’s where you can be a hero with your employees…
Because most people don’t know about these, you should explain it to your employees.
But keep politics out of it…
I know a single mom who struggles financially but still won’t enroll her six-month-old son.
Why?
Because 530A accounts are called “Trump Accounts” and she hates Donald Trump.
That’s sad, because these accounts aren’t about politicians, just as Roth IRA’s aren’t (even though they were named after Senator William Roth from Delaware).
Investing isn’t about politics; it’s about making a choice to participate in the American economy.
Details for 530A accounts are available at www.trumpaccounts.gov.
If you’re a parent, I implore you to check it out.
Your Biggest Fan,
Glenn in Nashville
P.S. 530A accounts are great when you have people and companies contributing. But they grow tax deferred, not tax free. If you’re doing all the funding yourself, a 529 Education Savings Account may be better for you because it grows tax free like a Roth IRA. Even if your kid decides not to go to college when they turn 18, you’re allowed to convert up to $35,000 from that account into a Roth IRA so you never have to pay taxes on it.
P.P.S. This article is only intended to inform you about the existence of 530A accounts, not educate on how they work. This is not intended to be financial advice, and you need to consult a CPA or other certified financial professional for details, especially on what was mentioned in the first PS.