Social Security Adds Information Inserts to Newborn Cards to Simplify $1,000 Trump Account Enrollment
Nearly 70 million Trump Accounts have been opened for eligible American children, according to the Social Security Administration.
The Social Security Administration (SSA) has begun including informational inserts about Trump Accounts with Social Security cards issued to newborns. The initiative aims to help parents enroll their children in the program and claim a one-time $1,000 government contribution.
According to an SSA statement issued on October 20, the insert provides step-by-step instructions for parents and guardians to claim an eligible child's account and receive the initial deposit.
“Social Security is providing families with the tools to get started right away on this generational opportunity to build a strong financial foundation for their children’s future,” SSA Commissioner Frank J. Bisignano said.
The inserts accompany Social Security cards issued through the Enumeration at Birth program, which allows parents to request a Social Security number for their newborn during the birth registration process.
Children born between January 1, 2025, and December 31, 2028, may qualify for the one-time $1,000 contribution.
To begin the process, parents or guardians are instructed to download the Trump Accounts application, register for the program and wait for further communication from the Treasury Department. The account must be activated before the government contribution can be received.
What Are Trump Accounts?
Trump Accounts are savings and investment accounts designed to help children build long-term financial security. An account can be established for an individual under the age of 18 who has a valid Social Security number.
Parents, family members, friends and employers can contribute up to $5,000 annually to an account held in the child's name under parental custodianship. Once the child turns 18, they gain full control of the account.
The SSA said nearly 70 million accounts have been opened for eligible American children. Of those, approximately 26 million have already received contributions.
The agency also noted that some unclaimed accounts have received contributions from donors, allowing eligible children to benefit even before their families complete the claiming process.
Rules for Investing Trump Account Funds
Trump Account funds are restricted to investments in mutual funds or exchange-traded funds (ETFs) that track qualifying stock market indexes, according to a proposed rule published by the Internal Revenue Service on August 21.
The proposal's public comment period ended on October 20.
Eligible indexes include the S&P 500 and other indexes composed primarily of equity investments in U.S. companies. Indexes focused on specific industries or sectors would not qualify under the proposed rules.
The investment funds must also keep annual fees and expenses at or below 0.1 percent of the account balance.
In an August 20 statement, the Treasury Department emphasized that investment fees can reduce savings over time. It said low-cost investment options could help children benefit from compound growth over many years.
“For a child investing over decades, even small differences in annual costs may have a meaningful effect on the amount available in adulthood,” Bisignano said.
He added that the proposed rules aim to maximize the portion of investment returns retained in each child's account by emphasizing low-cost index investing.
Default Investment Option
The Treasury Department previously identified the State Street SPDR Portfolio S&P 500 ETF as the default investment option for Trump Accounts. The fund tracks the S&P 500 and is designed to offer a relatively low-cost way to invest in the broader U.S. stock market.
The department has also identified four additional low-cost ETFs that parents or guardians can select for their children's accounts.
The program is intended to give eligible children an early start on saving and investing, with the potential for their accounts to grow over time through contributions and investment returns.