The BareStory
The 2026 tax filing season began on Monday, marking the first opportunity for parents and guardians to open new tax-advantaged savings vehicles known as "Trump accounts" or Section 530A accounts. Created by legislation passed in July, the program provides a one-time $1,000 contribution from the Department of the Treasury for U.S. children born between 2025 and 2028, with no income restrictions. To initiate the process, families must make an election using IRS Form 4547, which can be submitted with their 2025 tax returns.
In conjunction with the federal rollout, several major employers—including SoFi, BNY, BlackRock, Robinhood, and Charles Schwab—announced plans to match the $1,000 government contribution for their employees' children. Private philanthropists are also supplementing the program. Michael and Susan Dell pledged $6.25 billion to provide $250 contributions for children born before 2025, while Ray and Barbara Dalio are funding donations for children in Connecticut. Treasury Secretary Scott Bessent stated that these private contributions are part of a "50-state challenge" aimed at families in ZIP codes with median incomes below $150,000.
Once an account is established, individuals may contribute up to $5,000 annually, while employers can contribute up to $2,500 per worker per year on a tax-free basis. To be eligible to open an account this season, a child must have a valid Social Security number and be under the age of 18 by December 31. Tax professionals have recommended filing Form 4547 electronically to avoid processing delays, noting that a dedicated online portal is expected to launch in mid-2026.
While the White House has described the program as a method to introduce Americans to wealth building, policy experts have expressed concerns regarding equitable access. Madeline Brown, a senior policy associate at the Urban Institute, warned that employer matches might favor higher-income earners and noted that families who do not file tax returns could miss out on the federal benefits. The Treasury Department indicated it will begin contacting parents to activate the accounts in May.
How it may affect me
As a U.S. reader:
• Parents of children born between 2025 and 2028 can secure a $1,000 federal contribution by submitting IRS Form 4547 alongside their 2025 tax returns.
• You may receive additional funds if your employer offers matching contributions or if you qualify for philanthropic support designated for specific ZIP codes or older children.
• Once opened, these accounts allow for tax-advantaged growth through annual individual contributions of up to $5,000 and tax-free employer contributions of up to $2,500.
• Families who do not traditionally file taxes must navigate the filing process to claim benefits, as the program requires a tax return to verify eligibility.
• Filing paper forms may result in processing delays, so experts recommend electronic filing until the government launches a dedicated online portal in mid-2026.
