TREASURY DEPT. ENROLLS 60 MILLION CHILDREN IN TRUMP ACCOUNTS AND OK’S STOCK CONTRIBUTIONS

October 12, 2026

Monday, October 12, 2026 

By Ian Berger, JD IRA Analyst 

Last week, the Treasury Department made two unexpected announcements regarding Trump Accounts: First, it cleared the way for private foundations to make contributions of publicly traded stock to Trump Accounts. Second, it said that it had automatically opened Trump Accounts for approximately 60 million unenrolled eligible children. Importantly, despite the auto-enrollment, parents of children born between 2025 and 2028 must still proactively elect to receive the $1,000 federal government contribution.

 As background, four types of contributions can be made to Trump Accounts: (1) the $1,000 contribution; (2) individual contributions made by parents, grandparents and other persons; (3) employer contributions; and (4) contributions by tax-exempt organizations. However, none of these contributions can be made until a Trump account has been set up.

 The IRS had previously maintained that a Trump Account could only be opened by a parent or guardian. However, only about 7 million Accounts had been established as of July 2026. So, without auto-enrollment, tens of millions of children without Trump Accounts would have been shut out from receiving any contributions.

 Treasury has now reversed course and sanctioned automatic enrollment. A separate initial Trump Account (an “auto account”) will be established for each eligible child. Contributions can be made to each auto account and invested collectively through a master group trust. However, the auto account can only hold the $1,000 Federal government contribution (once elected) and any contributions made by tax-exempt organizations. 

If a parent (or other person) wants to make individual contributions or accept employer contributions, the parent must take steps to “claim” the auto account and move it out of the master trust.

 Treasury has also said it will permit tax-exempt organizations (such as private foundations) to make Trump account contributions in the form of publicly traded domestic stock instead of in cash. All other Trump Account contributions must still be made in cash and invested in low-cost U.S. stock index mutual funds or ETFs (exchange-traded funds).

It’s hoped that wealthy business owners with foundations will take advantage of the opportunity to donate company stock to their foundation and then have the foundation contribute the stock to Trump Accounts. This would allow the business owner to claim several big tax breaks and, combined with auto-enrollment, permit more children to receive contributions to their Trump Accounts.

 There is no maximum amount for tax-exempt contributions, and they don’t count towards the $5,000 annual limit for individual and employer contributions. Contributions must be made to a targeted group of children (e.g., those residing in a specific geographic area) during the “growth period” (the period before January 1 of the year the child turns age 18).

 Stock contributed to any Trump Account generally must be held for at least five years before it can be sold. However, stock held within the master trust for auto Accounts must be sold soon after the end of the five-year holding period.

 Copyright © 2026, Ed Slott and Company, LLC Reprinted from The Slott Report, [October 12, 2026], with permission[https://irahelp.com/treasury-dept-enrolls-60-million-children-in-trump-accounts-and-oks-stock-contributions/] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.

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