Child Account Auto-Enrollment
Treasury Plans Automatic Account Enrollment For 60 Million Children Beginning In October 2026
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Treasury and the IRS have issued rules to automatically establish Trump Accounts for eligible children who do not already have one, with the first accounts expected to be created beginning around Oct. 1, 2026. The agencies estimate the change could add accounts for more than 60 million children and affect about 73 million children in 44 million families, expanding access by removing the need for a parent or guardian to initiate account creation. A master group trust is intended to let the government administer investments collectively while maintaining separate records for each child and avoiding disclosure of protected taxpayer information. Automatic account creation does not itself secure the program’s one-time $1,000 federal contribution: an eligible adult must make a separate election for that payment, and must claim an auto-created account before it can receive other contributions. Alongside the temporary enrollment rules, the IRS has proposed rules addressing large, class-based contributions from private donors.
Key Points
1
The IRS says automatic accounts will be established for eligible children who have a Social Security number and no account already opened for them; it plans to make further elections periodically for children who become eligible later.
2
The temporary regulations took effect Sept. 30, 2026, and the IRS invoked “good cause” to issue them without advance public comment, citing the need to make accounts available before children’s growth periods shorten.
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The automatic-enrollment plan reverses the agencies’ March position against broad automatic enrollment. The earlier proposal said opening and operating accounts could expose taxpayer information protected by law; the IRS later said the master-trust structure addressed that concern.
4
The accounts are being handled by Robinhood and Bank of New York Mellon, according to the Wall Street Journal, though the article said it was not yet clear how parents would access accounts created automatically.
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