Every Hoosier child born from 2025 to 2028 is eligible to receive $1,000 to invest in their future — no questions asked. All parents have to do is sign up for a Trump Account.
The accounts were created last year as part of the One Big Beautiful Bill, marking the first federal child savings accounts in the U.S., and officially launched July 4.
We’ve compiled a guide on how the accounts work, how much money is involved and how to sign up.
Who qualifies?
Any child under 18 years old with a valid Social Security number qualifies for an account. U.S. children born between 2025 and 2028 will receive the one-time $1,000 contribution from the U.S. Treasury. The agency said the accounts give every child “a stake in the American Dream from day one.”
How much money will kids receive?
The U.S. Treasury will contribute $1,000 for each account, but some Hoosier kids could be eligible to receive additional funding.
In Indiana, children under 5 years old can also get $250 thanks to a donation from Hoosier native Brad Gerstner. The state has more than 411,500 children that age, according to the most recent U.S. Census data.
Gerstner, who was born in Goshen and attended Wabash College, is the founder and CEO Altimeter Capital. The investment firm manages billions of dollars in public and private assets.
The 55-year-old is the architect of the accounts. In 2020, he first proposed the idea that every child be provided a $1,000 investment account at birth. In 2023, Gerstner and his sons established the Invest America Foundation to make the idea a reality.
Some Hoosier kids will qualify to receive $250 from Michael Dell, founder of the global tech company Dell, Inc., and his wife, Susan. To be eligible, children must be 10 and younger, not qualify for the $1,000 federal investment, and live in a zip code with a median household income of $150,000 or less. Nearly every zip code in Indiana is below the threshold.
The couple in total has pledged $6.25 billion to jump-start Trump Accounts for qualifying children across the U.S. The Trump Account app will automatically confirm eligibility and contribute the $250.
Steak ‘n Shake, headquartered in Indianapolis, has pledged a $1,000 matching contribution for every child of their employees.
Indiana Gov. Mike Braun has also pledged to open an account for every foster child in the state.
How can you sign up?
Parents or legal guardians can open an account for their child by using IRS Form 4547. The form can be filled out and submitted through the Trump Accounts app, when you file your taxes, or through the IRS website called Individual Online Accounts.
How do they work?
The money is invested in a diversified portfolio of U.S. stocks. Individuals, employers, nonprofits and governments can all contribute to individual Trump Accounts, up to $5,000 a year in total.
At launch, all contributions will be invested in the State Street SPDR Portfolio, a fund that tracks the performance of the S&P 500. Investments can be rolled over into four other investment options available through the Treasury. Legal guardians can manage contributions and investment options for their child through the app.
The White House estimates the $1,000 investment will grow to $6,000 by the time a child turns 18. If parents or other entities contribute the max amount, those investments could be worth $271,000 at 18.
In a July 9 post on X, the White House said families had already contributed $125 million into Trump accounts.
When and how can the money be spent?
No money can be claimed until the child turns 18. After that, it becomes a type of traditional IRA. Only money used for qualifying expenses, like college tuition, career training or a first-time home purchase, can be withdrawn without penalties. Money left in the account will continue to grow until retirement.
Are there other savings account options to consider?
Yes.
“The $1,000 seed funding has generated significant attention, but families should understand that this is not necessarily the best or primary savings solution for every objective,” said Jeanne Krigbaum, Old National Bank’s chief wealth planner.
A 529 Plan, for example, allows parents to save for college without paying any federal taxes as long as the money is used for qualifying education expenses. Most states also don’t tax the money. Trump Accounts, on the other hand, tax all withdrawals at ordinary income-tax rates.
Kringbaum encouraged parents to look into other options or talk to a financial advisor before investing all their money into a Trump Account.
“For many families, this may be a complementary tool rather than a primary savings vehicle,” she said.
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FPI News reporter Carson Gerber covers healthcare, manufacturing, agriculture, immigration … and just about any other topic that’s shaping how we live in Indiana today. Reach him at 765-204-4250 or carson.gerber@fpinews.org.
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