A recent change makes Trump Accounts available to millions more children—and there’s a good reason for parents to pay attention, even if they don’t plan to contribute.
When Trump Accounts were introduced earlier this year, parents had to take the initiative to open an account for their children. That changed on October 1, 2026, when the U.S. Treasury Department automatically established accounts for more than 60 million eligible children under age 18.
The important distinction? Your child may already have an account, but you still need to claim it.
And we think most parents should, even if they have no plans to contribute their own money.
Why Claim an Account You Don’t Plan to Fund?
Trump Accounts are tax-advantaged investment accounts designed to give children a financial head start. Although the federal government automatically established accounts for eligible children, parents or guardians must claim them to manage the funds and allow contributions from family members, friends, and employers.
There are also opportunities for children to receive money from sources other than their parents:
- Federal government: Children born between January 1, 2025, and December 31, 2028, who meet the eligibility requirements can receive a one-time $1,000 government contribution. Parents must specifically request this benefit.
- Philanthropic contributions: The Michael & Susan Dell Foundation has pledged $6.25 billion to fund accounts for eligible children born between 2016 and 2024 in qualifying ZIP codes. Other philanthropic initiatives may provide additional contributions.
- Employer contributions: Some employers are offering Trump Account contributions as an employee benefit.
Even if your child doesn’t currently qualify for any of these contributions, future opportunities may arise. Claiming the account keeps those options open.
Should You Contribute Your Own Money?
That’s a different question, and the answer depends on your family’s broader financial picture.
Trump Accounts allow up to $5,000 in annual contributions from individuals and employers, with certain exceptions for government and philanthropic funding. Investments grow tax-deferred, but the accounts have restrictions on investments and withdrawals.
Before contributing, we would generally encourage parents to consider other savings opportunities:
529 college savings plans offer tax-free growth and withdrawals for qualified education expenses. For families anticipating significant education costs, these are often a better first choice.
Roth IRAs for working teenagers can be particularly attractive. If your child has earned income, a Roth IRA offers tax-free growth and potentially tax-free retirement withdrawals, along with greater investment flexibility.
Trump Accounts may make sense for families who have already addressed education savings and other priorities, particularly when an employer offers contributions or when the goal is to establish long-term retirement savings for a child who doesn’t yet have earned income.
As with most financial planning decisions, the best account depends on what you’re trying to accomplish, not simply which account is newest.
What Should Parents Do Now?
We recommend checking whether your children have Trump Accounts and claiming them through the official Trump Accounts app. You’ll need to verify your identity and your authority to manage the account.
For children eligible for the $1,000 federal contribution, you’ll also need to submit IRS Form 4547 to request the money. Claiming the account alone does not trigger that contribution. You can learn more at TrumpAccounts.gov or the IRS Trump Accounts website.
Our takeaway: You don’t need to make Trump Accounts a major part of your family’s savings strategy to benefit from the program. Claiming an account costs nothing, preserves access to potential contributions, and gives your child another opportunity to build financial security.
Sometimes good financial planning is simply making sure you don’t leave available benefits on the table.