Agency to notify parents of all children who have auto accounts established.
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IRS CEO Frank Bisignano spoke at an Oval Office press conference on Oct. 7, 2026. There he explained that there is now an automatic enrollment for children eligible for the new child IRA accounts referred to as “Trump Accounts.”
At present, 10 million accounts have been created. However, another 60 million children under 18 may qualify for one. To date, funding for the existing accounts has totaled approximately $4.5 billion. But Bisignano stated, "By this weekend you will see that move to $7 billion, with more than 25 million [accounts]. That is 25 million American children who now have a piece of capitalism.”
Trump Accounts are treated similarly to traditional IRAs. Parents, relatives and other qualified entities can make eligible contributions of up to $5,000 per year until each qualified child turns 18. Children born in 2025 through 2028 may also benefit from a contribution of $1,000 from the federal government.
The IRS issued regulations on Sept. 30 indicating that all eligible children will have an automatic enrollment into a Trump Account. Previously, a parent or other eligible person was required to submit IRS Form 4547 to establish one. The government stated there will be a substantial increase in the number of funded Trump Accounts after the auto-enrollment process has been completed.
Bisignano said, "I think it is really important for people to understand that every American child will hear from us to ensure they see their account." It appears the IRS will give notice to parents of all children who have an auto account established.
The press conference was attended by National Economic Council Director Kevin Hassett, Sen. Ted Cruz (R-TX), and Michael and Susan Dell. The Michael & Susan Dell Foundation made a gift of $6.25 billion to provide additional funding for children with Trump Accounts; it will pay $250 to 25 million children who live in ZIP codes with median incomes below a certain threshold.
At a tax meeting on Oct. 5, IRS Office of Associate Chief Counsel Kevin Knopf indicated that businesses will be able to provide salary contributions to the accounts by the end of 2026. The law allows qualified businesses to contribute up to $2,500 for the dependents of the employee; this contribution will not be taxable income for the employee.
When a child with a Trump Account reaches 18, the account will transition to a traditional IRA. This may continue to grow until the child reaches the qualified age for required distributions, which may be 75. The tax-free growth may provide the child with a large annual income for their retirement years.
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