The Treasury Department has introduced automatic enrollment for Trump Accounts, establishing about 60 million new investment accounts for eligible children with Social Security numbers. Families are no longer required to opt in for these accounts; however, they must actively claim them to access the full range of benefits available.
Under the new system, which was launched on Thursday, parents and guardians can claim their child’s Trump Account through an app or by submitting documentation to the Treasury. Previously established accounts, numbering around 7 million, remain unaffected by this update.
Trump Accounts, designed to provide tax-deferred investment options for children, were initiated as part of the One Big Beautiful Bill Act that was rolled out in July. To further incentivize participation, the federal government has allocated a one-time seed contribution of $1,000 for U.S. citizens born between January 1, 2025, and December 31, 2028, dependent on available funding.
While automatic enrollment aims to simplify access to these accounts, the process of claiming them has become more complex. Parents must now complete a verification process through the Trump Accounts app, which requires proof of their relationship to the child and a review of the child’s account details. This follows temporary regulations indicating that additional information will be necessary, as these accounts are classified as protected taxpayer information under the tax code.
Unclaimed accounts have restrictions on contributions, allowing only class-based donations and excluding individual contributions until they are claimed. If a parent does not claim an account, the child can do so upon turning 18, but they risk missing out on potential contributions and growth during their formative years.
Why this story matters
Key takeaway
Opposing viewpoint
