Trump Accounts will automatically be created for up to 60 million kids, Treasury says

The Treasury Department will automatically create up to 60 million Trump Accounts for eligible children in the U.S., according to guidance published in the Federal Register on Wednesday.  

The temporary regulations on President Trump’s namesake investment accounts for American children take effect Sept. 30, according to the Treasury. Previously, parents or guardians were required to sign up for accounts on their kids’ behalf, meaning that enrollment was not automatic. Auto-enrollment will begin Oct. 1. 

The Treasury Department said it expects that auto-enrolling individuals in Trump Accounts will add about 2 million more accounts per birth-year cohort and increase the appeal for eligible donors to make contributions. 

“Stakeholders have expressed that eligible donors prefer that their contributions reach all children, not just children whose parents have the awareness to opt in,” the notice said. As a result, “the incremental value of class contributions is expected to be billions of dollars per year, allocated across the Trump accounts of tens of millions of children.”

The tax-deferred accounts, created under Mr. Trump’s One Big Beautiful Bill tax and spending bill for U.S. citizens born between Jan. 1, 2025, and Dec. 31, 2028, are eligible for a $1,000 seed contribution from the government, according to a fact sheet from the Treasury.

Families with children born after those dates but who are under 18 may also open accounts, but won’t receive the government’s $1,000 gift. Friends, relatives or employers can contribute up to $5,000 per year to an account, however. Wealthy donors have also pledged to fund the accounts with generous, billion-dollar donations. 

For example, Michael and Susan Dell previously pledged $6.25 billion to accounts belonging to kids born between 2016 and 2024 living in ZIP codes where the household median income is below $150,000, while 50-plus corporations offered to make contributions on behalf of their employees’ kids. 

Before the rule change, parents or guardians of eligible children had to open a Trump Account by submitting IRS Form 4547 through the Trump Accounts mobile app, which launched on July 4. They could also sign up during tax filing or through the IRS website. 

The government withdrew the previous Trump Account regulation, saying that it “did not provide for broad automatic enrollment by the Secretary.”

“After considering public comments and further addressing the legal and operational issues associated with automatic enrollment, the Treasury Department and the IRS have identified an administrable structure that permits broad automatic enrollment while protecting return information,” the new regulations state.

Kids “should not lose the opportunity”

The Treasury said the new auto-enrollment function will eliminate the need for individuals to create accounts for their children in most cases. The government did not offer broad automatic enrollment when the accounts first launched, citing administrative challenges. 

Many public commenters, however, supported a proposal to enroll eligible children based on personal information obtained from tax returns, the Social Security Administration and other records, according to the Treasury. 

“Commenters stated that requiring an affirmative election by a person other than the Secretary would reduce participation, particularly among nonfilers, families unfamiliar with tax procedures, and families with limited time or resources to complete a separate enrollment process,” Wednesday’s notice read. 

It added, “Commenters also stated that an eligible individual should not lose the opportunity to receive contributions or investment growth merely because no adult completed an election.”