Earlier this year Trump Accounts were announced as a new investment account designed to help children get a head start on their financial future. Since then, the program has undergone some important changes, including the automatic creation of accounts for eligible children beginning October 1, 2026.
While automatic enrollment makes the process easier for families, it has also created some confusion. Does my child already have an account? Do I need to claim it? Can I manage how the money is invested? Let's walk through five common questions we have received about Trump Accounts and what families should know moving forward.
1. What Are Trump Accounts?
Trump Accounts are a new type of tax-deferred individual retirement account (IRA) designed for children under age 18 who have a valid Social Security number. Unlike a traditional savings account, the money is invested in qualifying stock market index funds, allowing it the opportunity to grow over time. Investment earnings are tax-deferred, meaning taxes generally aren't owed on those earnings while they remain in the account.
A few important features include:
- Eligible children born between January 1, 2025, and December 31, 2028, may qualify for a one-time $1,000 contribution from the federal government.
- Parents, grandparents, and others can generally contribute up to a combined $5,000 annually.
- Withdrawals are generally restricted until the year the child turns 18, at which point traditional IRA rules begin to apply.
2. If the Account Was Automatically Created, Do I Need to Do Anything Else?
Yes! While the U.S. Treasury began automatically establishing accounts for eligible children in October 2026, parents or guardians must still claim and activate the account to manage it. More importantly, automatic enrollment does not automatically qualify your child to receive the $1,000 government contribution.
If your child meets the eligibility requirements for the contribution, you must separately request it by completing IRS Form 4547 and selecting the $1,000 pilot program contribution. If an account has already been established for your child, you do not need to submit Form 4547 simply to open another one.
3. How Do I Claim the Account?
Fortunately, the process is relatively straightforward.
- Visit TrumpAccounts.gov or access the official Trump Accounts app or online portal.
- Begin the claiming process to determine whether an account has already been established for your child.
- Verify your identity and your legal authority to manage your child's account.
- Follow the remaining instructions to claim and activate the account.
You will want to have your child's Social Security number, date of birth, and other identifying information available. If an account has not yet been established, you can also use IRS Form 4547 to request one.
4. Can I Manage the Account?
Yes. Once you have claimed and activated your child's account, you can manage it on their behalf until they reach adulthood.
As the responsible party, you can generally:
- Monitor the account balance and investment performance.
- Make additional contributions and track account activity.
- Access statements and other important account information.
- Manage permitted account investments as additional options become available.
There are some limitations to keep in mind. Currently, Trump Account investments are directed into an index fund tracking the S&P 500, with additional eligible investment options expected in the future. Although parents can manage the account, the assets legally belong to the child.
5. What Happens if I Never Claim the Account?
If your child's account has already been established, there is no immediate deadline to claim it. Any funds deposited into the account remain invested, even if you never claim it. Those investments can increase or decrease in value based on market performance. When your child turns 18, a funded account transitions to traditional IRA treatment, and your child can verify their identity to assume control of the account. The money does not simply disappear because the account went unclaimed.
However, if the account never receives any contributions, it will generally be closed at the end of the account's growth period. It is also important to remember that children eligible for the $1,000 government contribution will not receive it without a separate election.
Final Thoughts
Trump Accounts present another opportunity for families to begin investing for the next generation. While the automatic enrollment process helps simplify account creation, there are still some important steps parents and guardians should consider. If you have a child under 18, check whether an account has been established. If your child qualifies for the $1,000 government contribution, make sure you complete the necessary election to receive it.
As with any investment or savings strategy, it's important to consider how a Trump Account fits alongside your family's other financial goals, including education savings and long-term planning. If you have more questions regarding long-term financial planning for you and your family, we invite you to start by completing our Discovery Questionnaire. We'd love to learn more about your values and goals and explore whether Harvest Point® Wealth Management would be a good fit to serve you.