At a glance
- The change follows a slow start: about 7 million accounts existed as of July 2026, and the IRS had said only a parent or guardian could open one.
- Each eligible child gets a separate initial account, per IRAHelp, and contributions are invested collectively through a master group trust.
- Auto-enrollment does not cover the $1,000 federal contribution.
The Treasury Department said last week it automatically opened Trump Accounts for about 60 million unenrolled eligible children and cleared private foundations to contribute publicly traded domestic stock, according to Ed Slott's IRAHelp.
The change follows a slow start: about 7 million accounts existed as of July 2026, and the IRS had said only a parent or guardian could open one. IRAHelp notes that, under that rule, tens of millions of children without accounts would have been shut out from receiving contributions.
What an Auto Account holds
Each eligible child gets a separate initial account, per IRAHelp, and contributions are invested collectively through a master group trust. The Auto Account can hold the $1,000 federal contribution, once elected, and contributions from tax-exempt organizations; individual gifts and employer money cannot go in. Those accounts follow IRA rules that end the year the beneficiary turns 17, according to WAD's records.
Auto-enrollment does not cover the $1,000 federal contribution. Parents of children born between 2025 and 2028 must still elect to receive it, IRAHelp says. To make individual contributions or accept employer contributions, a parent must claim the Auto Account and move it out of the master trust.
Stock gifts, no cap
Treasury also said tax-exempt organizations, private foundations among them, may fund Trump Accounts with publicly traded domestic stock. Every other contribution must still be cash and invested in low-cost U.S. stock index mutual funds or ETFs. Tax-exempt contributions have no maximum and do not count toward the $5,000 annual limit that applies to individual and employer contributions.
IRAHelp adds that tax-exempt stock contributions must be made to a targeted group of children.
For families with children born between 2025 and 2028, the $1,000 still requires an election and an unfunded Auto Account is the default if no one makes it. Foundation clients holding appreciated publicly traded stock now have a non-cash funding option.
To make individual contributions or accept employer contributions, a parent must claim the Auto Account and move it out of the master trust.
Advisors can check whether a grandchild's account remains in the master trust before a client writes a contribution check; money sent to an unclaimed Auto Account cannot be accepted. Foundation clients should note that the cash-only rule applies to every contribution type except the stock gift Treasury approved.
Reported by the Tax & estate planning desk from Ed Slott — IRAHelp. Published . Corrections