Social Security Makes Change to Help Parents Claim Trump Accounts
Summary
The Social Security Administration (SSA) has added new information to Social Security cards for newborns to help parents claim and manage "Trump Accounts," a new type of savings account for children. These accounts include a one-time $1,000 contribution from the U.S. Treasury for eligible children born from 2025 to 2028.Key Facts
- The SSA now includes an information insert about Trump Accounts with newborn Social Security cards.
- Trump Accounts are special savings accounts for children under 18 with a valid Social Security number.
- Eligible children born between January 1, 2025, and December 31, 2028, can receive a one-time $1,000 government contribution.
- Parents, relatives, and friends can contribute up to $5,000 per year to these accounts; employers can add up to $2,500 within this limit.
- Funds in Trump Accounts are invested in approved U.S. stock index funds and generally cannot be withdrawn before the child turns 18.
- The SSA and Treasury Department work together to inform parents about the accounts when issuing Social Security numbers at birth.
- Starting October 1, 2026, eligible children will be automatically enrolled by the Treasury, but parents must activate and claim the accounts to manage them.
- Parents must also elect to receive the $1,000 contribution if their child qualifies.
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