On October 1, the Treasury Department announced it had set up (automatically enrolled) Trump accounts for more than 60 million U.S. children (those for whom the government has Social Security numbers). However, a child’s parent/guardian must “claim” the account before the account can accept contributions (or the $1000 the government will contribute to eligible children (those born between 1/1/25 and 12/31/28) or their share of lump-sum contributions being made by the wealthy and by some corporations).

To claim an account, a child’s custodian (generally, a parent, guardian, adult sibling or grandparent, but for accounts eligible for the $1000 government contribution, only a parent or legal guardian), a person must download the official Trump Accounts app (https://trumpaccounts.gov/), verify his/her identity and legal relationship to the child whose account is being claimed, review the child’s pre-filled out details (Social Security number, date of birth), and accept the account’s terms. Then, the custodian claiming the account must make the election regarding whether the child is eligible to receive the $1,000 federal contribution.

As a reminder: all children under the age of 18 who have a valid Social Security number now have a Trump Account set up for them by the Federal government. Once claimed, the account can receive annual contributions of up to a total of $5,000/year from parents, guardians, family and/or friends. Employers can contribute to a claimed account for a total of up to $2,500/year, but an employer contribution counts toward the $5,000 annual cap.

Prospects: NAIFA is working with Treasury to be sure financial advisors can help their clients navigate the Trump Account process.

NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at dboyle@naifa.org; or Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org