How to Claim the New $1,000 Trump Account for Your Child (Plus FSA and Airline Refund Rules)

Any child born between 2025 and 2028 qualifies for a free $1,000 government deposit into a "Trump account." Parents don't put in a dime to get it started. The program launched July 1st, and you can open one now at trumpaccounts.gov once your child has a Social Security number.

I'm Ralph Estep Jr., a licensed public accountant with 30 years in the business. Each day, my cohost Juliet and I break down what's happening with your money on Becoming Financially Confident.

Quick take

• Trump accounts deposit $1,000 for kids born 2025–2028; family can add up to $5,000 more per year
• Balance grows tax-deferred and becomes an IRA at 18
• FSA balances over $680 vanish at year-end unless your plan has a grace period through March 15
• Airlines owe cash refunds, not vouchers, for domestic delays of 3+ hours, but only if you don't accept a rebooking first

What is a Trump account, and how do I claim the $1,000?

It's a government-funded savings account for kids born 2025 through 2028. The money grows tax-deferred until 18, then converts to an IRA. One catch: withdrawals count as ordinary income for your child, unlike a 529 plan, which stays tax-free when spent on school. If college is the goal, a 529 still wins.

Why does my newborn need a Social Security number right away?

You can't open the account, or claim your baby as a dependent on your taxes, without one. The IRS tightened this after fraud involving fake dependents. Start the application as soon as your child is born. Your tax return is still due April 15th no matter when they arrived.

What happens to unused FSA money?

It doesn't roll over automatically. Most plans cap the carryover at $680 or give you until March 15. Two things to do now: re-elect your FSA for next year (don't assume it continues), and check your balance while you can still spend it. If you've got LASIK or another procedure on the horizon, timing it to your enrollment window can save real money.

Does the airline owe me a cash refund?

Yes. Federal rules require a cash refund to your original payment method for domestic delays of 3+ hours (6+ hours international) or outright cancellations. Airlines have 7 days to refund a card, 20 days for anything else. Once you accept a rebooked flight or a voucher, the automatic refund is gone, so ask for cash first.

Side hustles to try this week

• Get paid by the hour as a mock juror, expert witness, standardized patient, or mentor
• Rent your driveway or parking spot on SpotHero (check with your insurer first)
• Sell items for friends with too much stuff and take a commission
• Pick up seasonal work at a golf course, museum, or theater
• Teach what you know on YouTube

Need or want? Here's the test

A caller this week, Kay, treated DoorDash and daily coffee as survival expenses. The test: What happens if you skip it? Can it wait? Is there a cheaper option that covers the same need? For Kay, weekend takeout was really about socializing, not hunger, so the fix wasn't cutting it out. It was budgeting for it on purpose.

FAQ

Can I open an account before my baby is born? No, you need the Social Security number first.

I already accepted a rebooking, can I still get cash? No, ask for the refund before agreeing to anything.

Is DoorDash ever really a need? Rarely. Cooking at home usually meets the same need for less.

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