MW 67 million kids haven't signed up for 'Trump accounts.' Here's what they could be missing out on.
Andrew Keshner
Even if parents don't plan to contribute, it may be smart to sign up to get any free money
There's money on the table in "Trump accounts" - so long as families enroll.
Nearly 6 million American children have been signed up for "Trump accounts," but millions more are eligible - and they could be leaving free money on the table.
Parents can start contributing to the accounts on July 4, and the Treasury Department rolled out the app where they can manage their accounts on Thursday.
"I think we're going to create a generation of shareholders," Treasury Secretary Scott Bessent told reporters Thursday.
The app is another step forward for many families that have signed up for the accounts to build their children's wealth in the years to come. But it's a nonstarter for millions of households that don't even have these new tax-advantaged accounts. And even if parents don't intend to contribute to the accounts themselves, they're potentially missing out on money for the taking and a chance to strengthen their child's financial future. Yet there's a way to fix the problem on a massive scale, experts say.
Trump accounts were created in last summer's Republican tax law. The accounts allow investment in low-cost index funds, and grow tax-deferred. U.S. citizen children who are born between 2025 and 2028 will get $1,000 in seed money from the federal government in their accounts.
In addition to parents and guardians, employers and philanthropists can also contribute to the accounts, though the money cannot be withdrawn until the child turns 18.
Massive donations are starting to materialize, including a $6.25 billion pledge from Michael and Susan Dell. Many large employers are announcing company matches on the government's seed money.
Children are not automatically signed up for the accounts. Families have to enroll by completing an IRS Form 4547, which they can do when they pay their 2025 taxes or by filling out the form here. The new app sends users to the IRS's website for sign-ups.
Bessent said nearly 6 million children have been signed up for Trump accounts so far. There were 73 million children under age 18 in the U.S. in 2024, according to the Census Bureau.
Last month, the Treasury Department said there were 1.2 million accounts eligible for the $1,000 seed money. There were 3.6 million births in the U.S. last year, according to the Centers for Disease Control and Prevention.
"Trump accounts are potentially the most significant wealth-building policy for children in U.S. history," said Jin Huang, a professor at Washington University in St. Louis. But there's an "enrollment gap" forming, he noted.
Six million sign-ups are a "good start," but "the challenge is 67 million left behind," Huang said. "Every child with no account is a child who cannot receive the federal government's $1,000, who cannot [access] employer matches" or philanthropic contributions.
Huang said the enrollment numbers so far reflect "a design challenge and not a communication problem." The fix is setting up a system where households are automatically signed up for accounts and can opt out, he noted.
In Huang's research, enrolling in child development accounts in Maine and Oklahoma soared with an auto-enroll switch. In Maine, enrollment in a program granting $500 to newborns switched from 40% to 100%.
"If a program like this is really going to be as transformative as it has the potential to be, we have to focus on who already is not taking advantage of these programs," said Madeline Brown, senior policy associate at the Urban Institute. "What we set up is an enrollment strategy system where they are still getting lost."
Treasury officials should be able to coordinate with Social Security officials to sign up families, Brown said. A Treasury Department spokesperson did not immediately respond to a request for comment. IRS officials have said in regulatory documents that "opt-out designs" would boost participation, but they would present challenges on laws protecting taxpayer information.
For now, there are still lots of sidelined families - but they are not locked out by any means. July 4 is the first day when parents, guardians and others can start contributing to the accounts. The annual contribution maximum is $5,000.
Many financial experts say there are still unanswered questions about the accounts, but it's still worth signing your child up for one in order to get any free money that could be coming their way. Here's where they should look:
Newborn children: Children born between 2025 and 2028 are eligible for the $1,000 from the government. They need to be U.S. citizens with a valid Social Security number.
Company matches: A wide range of companies have announced their own contributions to employees' Trump accounts. In the tech and finance sector, that includes BlackRock $(BLK)$, Vanguard, Uber $(UBER)$, Chipotle $(CMG)$ and big banks such as JPMorgan Chase $(JPM)$ and Bank of America (BAC).
Employers can give up to $2,500 per year without it counting as taxable income to the employee, according to the IRS.
Philanthropists and state governments: Michael and Susan Dell have led the way with their $6.25 billion grant. The aim is to put $250 in the accounts of 250 million children up to age 10 for ZIP codes with median incomes of $150,000 or less. Here's a link to check eligibility.
Other big-name donors have pledged to chip in money. Hedge-fund billionaire Ray Dalio and his wife Barbara have pledged approximately $75 million for Connecticut children. For children in ZIP codes where the median income is $150,000 and less, the result would be a $250 donation to children under age 10. Brad Gerstner, CEO of Altimeter Capital and a driving force to create the accounts, has made a pledge for kids in Indiana.
Oklahoma's state government passed a law last month authorizing $250 payments to the Trump accounts of Sooner State children.
There's a "50-state challenge" for philanthropists to donate to the accounts, Bessent said earlier this year. That could be extra money on the table across the country - if families sign up.
Robert Schroeder contributed.
-Andrew Keshner
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(END) Dow Jones Newswires
May 28, 2026 17:46 ET (21:46 GMT)
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