Trump Accounts to begin auto-enrolling children

The U.S. Department of the Treasury (Treasury) will automatically create Trump Accounts for eligible children rather than requiring parents to sign up. The shift to automatic enrollment could begin as early as October 1 and add more than 60 million children to the program in 2026 alone, up from roughly 7 to 8 million already enrolled through the previous opt-in process. In future years, these regulations could boost enrollment in Trump Accounts by about 2 million accounts per birth-year cohort.

Until now, enrollment required parents to actively sign up, either by filing IRS Form 4547 with their taxes or applying directly through trumpaccounts.gov. Studies show this opt-in requirement has slowed adoption, especially in lower-income families. The Social Security Administration has also launched a process to let parents enroll newborns right at the hospital, as part of the same process used to request a Social Security number at birth.

Only 5% of low- and moderate-income families (those earning up to $80,000 annually) have opened a Trump Account, according to Commonwealth.

If you have eligible children

Trump Accounts are tax-advantaged investment accounts for children under 18 who have a Social Security number, created under the 2025 federal tax law. Children born between January 1, 2025, and December 31, 2028, are eligible for a one-time $1,000 deposit from the Treasury, and any family member, employer or other contributor can add up to a combined $5,000 per child each year, not counting the Treasury deposit. Funds remain invested until the calendar year the child turns 18, at which point the account generally converts to a traditional IRA.

As the savings program switches to auto-enrollment, here’s what parents should know:

• If you already opened a Trump Account for an eligible child, this change doesn’t affect you.
• If you have not yet opened a Trump Account for an eligible child, auto-enrollment will create the account. However, it does not automatically apply the $1,000 government deposit for eligible children. That still requires a separate election, and parents or guardians will need to take a step to “claim” an automatically created account before they can contribute to it or accept contributions from others, including an employer.

For more information

Keep in mind that enrollment in the account is just the first step, and that it’s equally important to understand how to engage with the accounts afterward to maximize financial growth. Contributions to Trump Accounts can be made by anyone, including the account beneficiary, parents or guardians, grandparents, employers, philanthropic contributors or any other source.

For more general information on Trump Accounts, please visit trumpaccounts.gov. This is the best source to check current guidance, as rollout details may continue to develop over the next few weeks.