The Treasury Department said more than 60 million children were automatically enrolled in Trump accounts, according to guidance filed with the Federal Register.
“Millions of children have already signed up for Trump accounts. With automatic enrollment, more than 60 million additional eligible children now have accounts ready to claim,” Treasury Secretary Scott Bessent said in a statement.
Why are children automatically enrolled?
The idea behind the Trump accounts is to give children a head start in creating wealth. The accounts are a new type of tax-deferred individual retirement account for children. Any eligible child under 18 People with a valid Social Security number can open an account, while U.S. citizens born between 2025 and 2028 can also benefit from a one-time $1,000 government contribution.
Until now, parents or guardians were required to create an account in their children’s name. However, participation was low.
According to a study by the national nonprofit Commonwealth, participation rates remain low, with families citing concerns about the tax implications of these accounts, confusion about how to open one, a lack of clarity on eligibility and a lack of trust in administration as reasons for not opening an account.
So far, only 5% of low- and moderate-income families eligible for Trump 530A Account actually opened one.
Learn more: The Trump accounts could help low-income families the most. Few people signed up.
“The complexity of eligibility requirements, contribution limits, income phase-outs, and withdrawal rules across more than a dozen accounts discourage participation, particularly among households with limited time, poor financial literacy, or insufficient outside savings for emergencies,” Adam Michel, director of tax policy studies at the Cato Institute, said in a policy analysis. “The result is a system used primarily by those who are best equipped to navigate it.”
Learn more: Trump Account Investment Options, Rules and Guidelines: What You Need to Know
Who is automatically enrolled and how to claim your account
Every eligible child under 18 with a valid Social Security number now has a Trump account. It is up to parents and guardians to claim their child’s account.
Parents can claim an account and the initial $1,000 contribution for eligible children by downloading the official Trump Accounts app, verifying their identity and relationship to the child, reviewing the child’s information, and agreeing to the account terms.
Learn more: Trump Accounts App: How to Sign Up and Get Started
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