Regulatory & Compliance | 09.29.26

Treasury Will Auto-Enroll 60 Million Children in Trump Accounts

by: Richard Rubin; Ashlea Ebeling

The U.S. Treasury Department plans to automatically create Trump Accounts for more than 60 million children under 18, significantly expanding access to the new government-backed investment accounts. Previously, families generally had to opt in. The accounts are designed for long-term savings and investing, while children born from 2025 through 2028 can receive a $1,000 government contribution, though families must separately elect to claim that payment. Auto-enrollment will allow accounts to begin accumulating assets without immediate action from parents, but guardians must claim the accounts to make personal or employer contributions. The Treasury also established a mechanism for wealthy donors to contribute appreciated stock. Although accounts generally must use diversified, low-cost index investments, donated shares can be held for five years before sale.

Read the full article on The Wall Street Journal