During lunch at a Coney Island restaurant near the office, a colleague who recently became a dad showed me his phone. He mentioned that the government is supposed to deposit $1,000 for babies, but he hasn't done anything about it yet.

I had only heard about it in the news, so we looked it up together. To cut to the chase, it's money you won't receive if you just sit back.

It's called the Trump Account. This investment account in the child's name was created by the so-called One Big Beautiful Bill, signed on July 4, 2025.

The $1,000 seed money comes from a Treasury pilot program. It targets U.S. citizen children born between January 1, 2025, and December 31, 2028, and they must have a valid Social Security number.

The key point is that it's not automatic. Parents or eligible guardians must actively choose to open the account and participate in the pilot program using IRS Form 4547.

The form itself is just one page. Checking the box for pilot participation is essentially all you need to do, so if you miss this, you might end up with just the account and no $1,000.

There are several ways to submit it. You can attach it to your federal tax return on Form 1040, or submit it through your IRS online account, by mail, or at TrumpAccounts.gov.

My colleague thought he was late because he already filed his taxes in April. However, the Treasury has indicated that you can choose to open the account anytime with Form 4547.

According to data released by the IRS on March 31, there were 4 million children registered for the Trump Account at that time. Out of those, 1 million had applied for the $1,000 pilot.

Among the 4 million, there are likely older children who are not eligible for the pilot. Still, I was surprised by the difference being this significant.

It's also confusing that applying is not the end of the process. The Treasury has been sending activation emails in phases starting in June, and parents need to complete the account setup via the app or website.

The Treasury stated that the activation emails will come from [email protected]. It's wise to check the sending address first, as there may be fake emails mimicking the name.

The app is available on the Apple App Store and Google Play, and if using a phone is inconvenient, a web version is also accessible. The contact number is 1-866-USA-4547.

The $1,000 deposit and regular contributions started on July 4, 2026. Before that date, no money could be deposited.

Money contributed by family or employers can total up to $5,000 per year for individuals and employers combined. The $1,000 from the government does not count toward this limit.

Employer contributions can be up to $2,500 per employee per year, and this also falls under the $5,000 limit. It's good to know that even if you have multiple children, the contributions are aggregated based on the employee.

Funds can only be invested in a fund that follows an index primarily composed of U.S. companies. Leverage is not allowed, and annual fees must be 0.1% or less.

Withdrawals are not permitted for any reason until the child turns 18. After that, it converts to a traditional IRA and follows IRA withdrawal rules.

So, this is not an emergency fund you can dip into when needed. If you're only saving for college tuition, it might be worth comparing it to a 529 plan.

There is also a way to handle this during the birth registration at the hospital. The SSA announced on July 3 that they would include Trump Account registration in the newborn Social Security number application process.

However, since this involves changing hospital forms in each state, if you've already had your baby, there's no reason to wait for this. The extent of automatic registration is still a topic of debate.

Immigrant families should also take note. The pilot criteria are based on the child's citizenship and Social Security number, so if a child is born in the U.S., they may be eligible. Check the form instructions for the requirements for parents.

I know there are people who view this program positively and others who see it as a publicity stunt. I'm somewhere in the middle, but I think it's a shame to miss out on money created by law just because of one piece of paperwork.

Honestly, I find it a bit disappointing that the $1,000 is hidden behind a checkbox. Asking busy new parents to apply and activate it is quite a hassle.

My colleague was logging into his IRS online account before finishing his chili dog. He said he would wrap it up with his wife later in the evening.

If it were me, I would approach it this way: first, check the child's Social Security number, then see if the box for pilot participation is checked on Form 4547. Finally, confirm whether the activation email has arrived and if the setup is complete in the app.

If someone else filed your taxes, ask them if Form 4547 was actually submitted. Registration and pilot application are separate, so this is the most common oversight.

If you know anyone who had a baby this year or last, casually mention it over lunch. A light comment could turn into $1,000 worth of information.