Treasury auto-enrolls 60 million more children in Trump Accounts

Treasury auto-enrolls millions of children

Yahoo Finance reports that millions of American children now have Trump Accounts even though their parents did not sign up for them. On Oct. 1, the Treasury Department said it had automatically enrolled more than 60 million additional children. The report says having an account does not by itself mean the family will receive the government’s $1,000 contribution.

Who qualifies for the federal $1,000

According to the IRS, the $1,000 contribution is limited to children who are U.S. citizens, were born between Jan. 1, 2025 and Dec. 31, 2028, and have valid Social Security numbers. Yahoo Finance says families also have to elect the contribution on Form 4547 and claim the child’s account in order to get the money. The article adds that older children will not receive the federal deposit, though they may still qualify for money from other sources.

Other contributions mentioned by the source

Yahoo Finance reports that Michael and Susan Dell have pledged $6.25 billion to fund $250 contributions for 25 million children, according to the Treasury Department. The White House said those contributions would be aimed at children age 10 and under who live in ZIP codes with median incomes below $150,000.

How parents claim and use the account

Parents can claim a child’s account through the official Trump Accounts app on iPhones and Android devices, or through TrumpAccounts.gov, according to Yahoo Finance. To finish the process, parents must verify their identity and their relationship to the child, check the child’s information, and accept the account terms.

Contribution limits and investment setup

According to the IRS, parents, grandparents, and others can contribute up to a combined $5,000 a year to a child’s Trump Account. The article says an employer may contribute up to $2,500 a year if it offers that benefit, and that amount counts toward the same $5,000 cap but is excluded from the parent’s taxable income. Yahoo Finance also reports that the government’s $1,000 contribution and some qualifying charitable contributions do not count against the annual limit. The account money is generally invested in low-cost U.S. stock index funds, which can rise or fall with the market.