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Trump Accounts Are Now Automatic - Here's What Parents Need to Do

Trump Accounts Are Now Automatic - Here's What Parents Need to Do

October 06, 2026

On October 1, the U.S. Treasury announced it had finished automatically opening Trump Accounts for every eligible child under 18 who has a valid Social Security number. Until now, parents had to sign their kids up. If you have a child under 18, they probably already have an account - whether or not you opened one.

But there's an important catch: an account that's been opened for your child isn't the same as an account that's ready to use.

Opened is not the same as claimed

A parent or guardian has to "claim" the account before anything else can happen. Claiming is done in the official Trump Accounts app (available for iOS and Android). You'll verify your identity and your relationship to your child, review your child's information, and accept the account terms.

Until it's claimed, you can't manage the account, and family members, friends, and employers can't contribute to it.

Don't forget the $1,000

Children born between January 1, 2025 and December 31, 2028 who are U.S. citizens with a Social Security number are eligible for a one-time $1,000 deposit from the federal government. Treasury says the account has to be claimed to receive it. The IRS also has a separate election form (Form 4547) that can be filed online through your IRS account, which takes about 5 to 10 minutes. Because guidance is still being finalized, check TrumpAccounts.gov and the IRS page to confirm the current steps for your family.

The key rules, in plain English

  • How much can go in: Up to $5,000 per year in total from family, friends, and employers. The $1,000 federal deposit and group contributions from governments or charities don't count toward that limit.
  • What it can invest in: Until the year your child turns 18, the money must go into low-cost funds that track a broad index of mostly U.S. stocks.
  • When you can get to the money: Generally not until January 1 of the year your child turns 18. After that, the account follows the same rules as a traditional IRA. Taking money out before age 59½ generally means paying income tax on the taxable portion plus an extra 10% tax, unless an exception applies. Exceptions include qualified education expenses and up to $10,000 toward a first home.

How does it compare to a 529 plan?

A 529 plan is built for education: withdrawals are tax-free when used for qualified education costs. A Trump Account is more of a long-term, retirement-style account - the money is locked up until 18 and then follows IRA rules. They aren't an either/or choice. The free $1,000 is worth claiming for eligible children. Whether it makes sense to contribute beyond that depends on your goals, your timeline, and what else you're already saving.

What to do now

  1. Claim your child's account in the Trump Accounts app.
  2. If your child was born 2025-2028, make sure the $1,000 deposit is set up.
  3. Ask your employer whether they offer contributions to employees' children's accounts.
  4. Talk to us about how this fits alongside a 529 plan and the rest of your family's financial plan. Read more

This article is for general educational purposes and isn't intended as tax, legal, or investment advice. Trump Accounts are new, and rules and guidance may change. Talk with your financial advisor and tax professional about your family's situation.

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