Treasury will open a Trump account automatically for every eligible child

Treasury and the IRS published temporary regulations on September 30, 2026 (TD 10056) that open a Trump account automatically for every eligible child. On or about October 1, 2026, the Treasury elects an account for each child who is under 18 at the end of the year, has a Social Security number and has no account yet, and it keeps doing so periodically for children who become eligible later. Parents do not have to file anything for the account to exist, but they do have to claim it before family or employer money can go in.

What changed?

Trump accounts are savings accounts for children created in 2025 by section 530A of the tax code. They are a type of traditional IRA with special rules until December 31 of the year the child turns 17. Contributions have been allowed since July 4, 2026.

The earlier proposed rules of March 9, 2026 relied mainly on a parent or another adult making an election on Form 4547. The new rules replace that approach. The Treasury now makes the election itself, so children whose parents never file the form still get an account. The proposed regulations published the same day (CC-00226466-26) repeat the text of the temporary rules and are open for comments until November 30, 2026. The temporary rules are in force from September 30, 2026 and expire on September 30, 2029 unless final rules replace them sooner.

What can go into an automatic account?

An auto account can only receive the $1,000 pilot deposit and "qualified general contributions": equal amounts that a state, local government, tribe, the federal government or a 501(c)(3) charity gives to every child in a group, such as all children born in certain years who live in a state. A group has to include at least 5,000 children. Donors can give publicly traded stock as well as cash; the stock is held for 5 years or until the child's account leaves the growth period, whichever comes first.

The money in auto accounts is invested together through a master trust run for the Treasury, with a separate record for each child.

Who is affected?

Every child who had not reached 18 by the end of the year and had a Social Security number when the election was made, unless a parent or another adult had already made an election for them on Form 4547. The Treasury does not open a second account for those children.

The $1,000 pilot deposit from the Treasury is narrower. It goes to US citizen children born after December 31, 2024, and before January 1, 2029, and only after a parent who expects to claim the child as a qualifying child makes the pilot election. The Treasury cannot make that election, so automatic enrollment alone does not bring in the $1,000.

What should parents do?

To claim, you prove who you are and that you are the child's legal guardian or custodian, because the account's details are treated as confidential tax information. If several people claim the same account, the first one to activate the new account becomes the responsible party. After claiming, contributions from parents, relatives, others and an employer can total up to $5,000 a year, with up to $2,500 from an employer; both limits are adjusted for inflation after 2027. A child can have only one funded Trump account at a time.

Do TaxWren's calculators include Trump accounts?

No. Contributions are not taxed to the child when they go in, and employer contributions of up to $2,500 are not included in the employee's income, so the take-home pay calculator and the income tax calculator have no Trump account input: your wages and tax there are the same with or without an account. We are following the rules and will review this when they are final.