If your child is under 18 and has a Social Security number, they were likely enrolled in a Trump Account when the program launched on July 4.
The Treasury Department confirmed that more than 60 million American children were added automatically. You did not have to do anything for that to happen.
But enrollment is not the same as funding. IRS Commissioner Frank Bisignano said this week that as many as 25 million accounts could receive funds by mid-October, according to CNBC.
Whether your child’s account is in that group depends on a few things worth knowing before you assume anything has arrived.
There are multiple funding sources tied to this program, and they do not all apply to every child. Your child’s birth year matters. So does whether you have actually claimed the account yet. If you have not opened the Trump Accounts app, your child’s account has almost certainly not received any money.
Also read: IRS sends notices about new Saver’s Match worth up to $2,000
What a Trump Account actually is
Trump Accounts, also called 530A accounts, are tax-deferred investment accounts for children.
They are not savings accounts. The money is invested, which means it can grow over time but can also lose value. Returns are not guaranteed.
The idea behind the accounts is to give children a long head start. Money that goes in early has years, sometimes decades, to grow before your child is old enough to use it. That time is the whole point. A contribution made when a child is two years old sits in the market a lot longer than one made when they are 15, and that difference adds up.
There’s one thing a lot of parents are still confused about: Automatic enrollment created the account. It did not put money into it. Those are two separate things.
Your child has an account sitting there. Whether it has any money in it right now is a different question entirely, and the answer depends on steps that still need to happen on your end.
Jana Murr / Getty Images
What your child may qualify for
Bisignano did not specify which types of deposits make up the 25 million accounts he expects to be funded by mid-October.
Trump Accounts can receive money from the federal $1,000 seed grant, the $250 Dell contribution for older children, employer pledges, and state philanthropic funds. His figure likely includes some mix of all of these.
Children born between 2025 and 2028 qualify for the Treasury’s $1,000 one-time contribution. Children born between 2016 and 2024 do not qualify for that grant, but Michael and Susan Dell have committed $6.25 billion to put $250 into accounts for that group.
If your child was born before 2025, the Dell contribution is what applies to them at the federal level, not the $1,000 grant. Some children may qualify for money from more than one source, depending on their birth year and where their parents work.
About 72 companies have also pledged to match contributions for employees’ children, Bisignano said. Philanthropists in several states have committed additional funds on top of what the federal program offers.
The terms vary, so check what your specific employer has actually promised before you count on that money being there.
How to claim your child’s Trump Account
Download the Trump Accounts app. That is the step that unlocks everything.
Enrollment created the account, but it did not trigger any deposit. If you have not claimed the account through the app, none of the money Bisignano described has moved for your child yet. That is just how the program works.
More Personal Finance:
- The tax rules that can quietly ruin your Roth IRA conversion strategy
- Choosing an annuity for retirement rests on hidden features, risks
- One index exposes your bigest retirement fears
Once you are in the app, confirm your child’s eligibility and submit the required identifying information. The app will show you which contributions your child qualifies for based on their birth year.
If you have more than one child, you have to go through this for each of them separately. Siblings born in different years may qualify for completely different amounts, so you cannot do one and assume the others are covered.
Only use official government channels. Any unsolicited message asking for your Social Security number or banking details to help you claim a Trump Account benefit is a scam. Go directly to the app. Nobody from a legitimate part of this program will reach out to you first.
What to know before you add your own money to a Trump Account
You are not required to contribute anything beyond what the program deposits. The seed grants and any employer matches do not require you to put in your own money first. But if you are thinking about adding to the account on top of what arrives, there are a few things to understand before you do that.
- Look at the investment options and fees before you put anything in. Fees take a percentage of your balance every year, and that compounds against you over time, just as returns compound for you. An account you plan to hold for 15 or 20 years will feel that drag in a meaningful way. Knowing what you are paying is a basic thing that is easy to skip over when the program feels new.
- Read the withdrawal rules. The money in a Trump Account is not freely accessible. There are rules about when it can come out and what it can be used for. Those details matter as much as how much goes in. Putting money somewhere without understanding how you get it back is a decision worth slowing down for.
The midterm elections are approaching, and expanding Trump Account access has been a stated administration priority.
Bisignano’s mid-October deadline is the most specific funding window the administration has announced. If your child has been enrolled since July and you have not yet opened the app, now is the time to do it.
Related: IRS adds another Wall Street name to Trump Accounts
