Q: I’ve heard there have been changes to Trump Accounts. What’s new, and do parents need to do anything?
A: Yes. There have been important developments since Trump Accounts were introduced this year. Here are three things parents should know:
The government is opening accounts automatically. Beginning Oct. 1, the federal government started establishing Trump Accounts for eligible children under age 18 with valid Social Security numbers, including those whose families hadn’t previously signed up.
Parents need to claim the account. Although the account may already exist, an authorized parent or guardian must claim and activate it to manage investments. This can be done through the official website, TrumpAccounts.gov, or its app.
Not every child gets the $1,000 government contribution. Trump Accounts are investment accounts for children that offer tax-deferred growth. The $1,000 government contribution is available only to qualifying U.S. citizen children born from Jan. 1, 2025, through Dec. 31, 2028 – roughly the years of Trump’s second presidency. Parents must separately request this contribution using IRS Form 4547.
The bottom line: Automatic enrollment doesn’t mean there’s nothing left to do – or that every child gets $1,000. If you have an eligible child, visit TrumpAccounts.gov to claim the account and, if your child qualifies, request the government contribution.
Send questions about your taxes to Vincent Hicks, a CPA based in Cambridge who has more than 20 years of experience, at vincent@hickscpasolutions.com. You can call Hicks at (859) 553-0788.
