WASHINGTON — Every eligible child in Ohio now has a Trump Account, but parents must take one more step before the money can start flowing.
The Treasury Department said Oct. 1 it had automatically enrolled more than 60 million children nationwide in the investment accounts, which were created by last year’s federal tax law. Including about 10 million children whose parents signed up earlier, roughly 70 million are now enrolled.
Any U.S. citizen under 18 with a valid Social Security number qualifies. A parent or guardian must claim the account through the official Trump Accounts app by verifying their identity and their relationship to the child.
Children born from 2025 through 2028 receive a one-time $1,000 government deposit once the account is claimed. Some children born from 2016 through 2024 can receive $250 from Michael and Susan Dell, depending on where they live. Family, friends, and employers can contribute up to $5,000 a year.
The money is invested in U.S. stock index funds. Children can’t withdraw it until they turn 18, when traditional IRA rules take over. Withdrawals before age 59½ generally face taxes and a 10% penalty, with exceptions such as education costs and a first home.
Supporters say the accounts give children an early start on building wealth. Researchers note that participation has been harder to achieve among lower-income families when the accounts require parents to take action.