Treasury says over 60 million children have been auto-enrolled in Trump Accounts

Key Points:

• The Treasury Department announced that over 60 million children have been automatically enrolled in Trump Accounts, a new type of tax-deferred individual retirement account designed to help children build wealth.
• Trump Accounts are available to children under 18 with a valid Social Security number, and U.S. citizens born between 2025 and 2028 may qualify for a one-time $1,000 government contribution.
• Previously, parents or guardians had to manually sign up for these accounts, but participation has been low due to confusion about eligibility, tax concerns, and lack of trust in the administration.
• Parents and guardians must claim their child's automatically enrolled account by using the official Trump Accounts app to verify identity, review information, and accept terms to access the account and any government contributions.
• Experts note that the complexity of eligibility and withdrawal rules has limited participation, especially among low- to moderate-income families, with only 5% of eligible families currently opening an account.