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Trump Accounts just became automatic. Parents no longer have to opt in on behalf of their kids, but they will have to claim the investment accounts to unlock most of the benefits.
The Treasury Department launched auto enrollment Thursday, making approximately 60 million new Trump Accounts — one for every eligible child with a Social Security number. While the creation of new accounts is now hands-off, families will still need to activate them if they want to make or receive most contributions.
Some 7 million previously established accounts are not affected by the changes.
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“Automatic enrollment is now complete so parents and guardians can go to the app at any time and claim their child’s Trump Account,” a Treasury official tells Money.
Trump Accounts are free, tax-deferred investment accounts for kids, similar to custodial brokerage accounts and individual retirement accounts, or IRAs. The program, created by the One Big Beautiful Bill Act, formally debuted in July.
As part of the rollout, the federal government is providing a one-time seed-money contribution of $1,000 for U.S. citizens born between Jan. 1, 2025, and Dec. 31, 2028, while funding lasts. Children born outside this range may still be eligible for an account but will not receive the one-time government payment.
How to claim a Trump Account
Before Thursday, parents and guardians needed to opt their children into a Trump Account using Form 4547 submitted when filing their taxes. They could also use TrumpAccounts.gov or the Trump Accounts app.
This step is no longer required, as the Treasury Department is automatically creating the accounts on behalf of children.
Temporary regulations enacted Wednesday indicated that the department will periodically establish these new accounts in waves, starting with the initial 60 million children this year and automatically adding millions more in subsequent years.
The Treasury Department refers to these accounts as “auto Trump Accounts.” Despite the name, the remainder of the enrollment process not automatic. After an account is generated, the department maintains control on behalf of the child until someone claims it. (It may be helpful to think of auto accounts simply as unclaimed Trump Accounts.)
To claim and activate an auto Trump Account, a parent, legal guardian or a beneficiary (once they’ve turned 18) must file with the Treasury Department. This verification process is currently done through the Trump Accounts app.
Even though accounts start automatically now, the enrollment process for parents appears to be more onerous than before.
The regulations stated that the information required to claim an auto Trump Account will be “more extensive” than simply filling out Form 4547. This is because the auto accounts are considered protected taxpayer information under section 6103 of the tax code, and now parents must prove they’re legally entitled to that information before the Treasury can hand over control.
“Using the Trump Accounts app, parents will need to verify their identity, verify their relationship with their child, review their child’s information and accept the terms,” a Treasury official says.
‘Auto Trump Accounts’ have contribution limitations
Compared with already claimed Trump Accounts, unclaimed auto accounts have contribution limitations that parents should be aware of.
According to the Treasury Department, the only contributions that unclaimed accounts can accept are ones made on a class basis, such as a donor contributing to a broad group of people. It’s easier for the department to manage and distribute these types of donations.
“More eligible donors will make general funding contributions, more children will receive qualified general contributions, and the total value of class contributions will be larger,” the Treasury Department said in the new rules.
However, unclaimed accounts are not eligible for other types of contributions, such as the federal seed money, employer contributions or deposits made by parents and friends. And parents won’t be able to choose how to invest the general contributions until they claim the account.
If a parent does not claim an auto account, the beneficiary can do so when they turn 18. But this comes at a cost of potentially years of missed contributions and wealth-building gains that would have occurred had the parent fully claimed and invested any funds.
It’s a missed opportunity especially for newborns eligible for the $1,000 seed money, which could potentially grow to more than $5,000 over 18 years and upward of $750,000 if left untouched until retirement age.
Parents who want to take advantage of the core wealth-building perks of Trump Accounts while their child is a minor should make sure the account is fully claimed and any seed money — if eligible — is safely deposited.
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