Treasury Auto-Enrolls 60 Million Children in Trump Accounts

The Treasury Department announced on October 1 that it automatically enrolled all eligible children in Trump Accounts, the federal savings vehicle for minors launched July 4. Only 8 million accounts had been opened this summer among tens of millions of eligible children. "With automatic enrollment, over 60 million more eligible children now have an account ready to be claimed," Treasury Secretary Scott Bessent said. Treasury estimates the shift will add 2 million accounts annually. Parents must still claim accounts via the official app, verify identity and accept terms. Accounts hold low-cost US index funds, with the SPDR Portfolio S&P 500 ETF (SPYM) as default. Combined annual contributions from families and employers are capped at $5,000, with employer contributions limited to $2,500 per employee. At 18, accounts convert to traditional IRAs, with withdrawals taxed as ordinary income. Critics note the structure may disproportionately benefit families with means.