Trump accounts have been getting plenty of attention, and the temporary regulations issued September 30, 2026 (T.D. 10056) add new drama: the IRS will automatically open accounts for eligible children who don’t already have one. These are called “auto accounts.”
The IRS will establish an auto account for an eligible child who has a Social Security number if no Trump account has already been opened for that child. The first batch is expected on or about October 1, 2026, and the IRS will open more periodically after that.
That means many families won’t have to open an account just to make sure one exists. It does not mean anyone in the family has access to it.
Opening an Account Is Not the Same as Claiming It
The IRS can open an auto account without the family’s involvement, but nobody controls it until someone claims it. Auto accounts give eligible contributions somewhere to land before a family takes any action. To access or manage the account, an eligible claimant has to claim it first. Once that happens, the balance moves out of the auto-account structure and into a claimed Trump account.
Who Can Claim an Auto Account?
The claimant has to have legal authority over the beneficiary, or be the beneficiary after reaching legal capacity. That means:
- A guardian or legal custodian with authority to act for the beneficiary, or
- The beneficiary, after reaching the age of majority or being emancipated under state law.
Being the child’s parent isn’t enough on its own. The claimant has to establish legal authority, including the authority to receive the child’s tax information. A parent qualifies by showing that authority as a guardian or legal custodian.
Claims will be made through an electronic application or webpage the IRS makes available. The claimant will need to:
- Verify their identity,
- Establish legal authority over the beneficiary and the account, and
- Provide any consents or information the IRS requires.
When the claim goes through, the entire auto-account balance transfers as a qualified rollover contribution to a claimed initial Trump account or a rollover Trump account.
The Master Group Trust
Auto accounts are held through a master group trust set up by Treasury. It’s a pooled vehicle that lets the government hold and invest unclaimed auto-account money together instead of administering millions of individual accounts from the start.
While an auto account is unclaimed, its only investment is its interest in that trust. Nobody is picking investments for the child. After the account is claimed, the money moves to a claimed initial Trump account or rollover Trump account.
What Can Go Into an Auto Account
Auto accounts accept fewer kinds of contributions than claimed Trump accounts. During the growth period, an unclaimed auto account can receive only:
- Qualified general contributions, and
- The one-time $1,000 pilot program contribution, if the child is eligible and someone makes the election.
Parent and family contributions, employer contributions, and rollovers have to wait until the account is claimed.
Qualified General Contributions
A qualified general contribution comes from a general funding contribution made by a governmental entity, an Indian tribal government, or a tax-exempt charitable organization.
The contributor picks a qualified class of beneficiaries, such as all beneficiaries under 18, those in a specified state, or those born in a specified year. The money is then divided equally among every account in that class. The contributor can’t add its own eligibility criteria beyond the permitted classes.
The $1,000 Pilot Contribution
The pilot contribution is available only for a child who:
- Was born after December 31, 2024, and before January 1, 2029,
- Is a U.S. citizen, and
- Has an SSN issued before the election is made.
The pilot contribution isn’t automatic just because an auto account exists. Someone has to make the pilot program election, either on Form 4547 or through the IRS online process, and the election must include the child’s SSN. Only the first processed election for a child produces the $1,000.
Practical Takeaways for Families and Advisors
For many families, the new rules remove the need to open a Trump account just to get one started. If the IRS opens an auto account, it exists and can receive the limited contributions described above.
When talking with clients, consider the following:
| Question | Answer |
|---|---|
| Has an account been opened automatically? | The IRS may open an auto account for an eligible child with an SSN if no Trump account already exists. |
| Can the family control it yet? | Not until a guardian, legal custodian, or the beneficiary (once of legal capacity) claims it. |
| Has the $1,000 pilot contribution been requested? | Not unless someone has made the pilot program election on Form 4547 or through the IRS online process. |
Families may not need to open an account the way they would have under an opt-in system, but they still have steps to take.
After the Auto Account Is Claimed
Once the account is claimed, the balance moves to a claimed initial Trump account or rollover Trump account, and the account follows the rules for claimed Trump accounts. That includes the growth-period restrictions on contributions, distributions, and investments. During the growth period, the money has to stay in eligible investments: generally mutual funds or ETFs that track a qualified index, don’t use leverage, and charge no more than 0.1% in annual fees and expenses.
If the Beneficiary Dies
If the beneficiary dies during the growth period, the account stops being a Trump account as of the date of death. The amount included in income is the account’s fair market value on the date of death minus basis. Basis doesn’t include qualified general contributions, the $1,000 pilot contribution, or excluded employer contributions, so those amounts are taxed along with the earnings.
Who reports the income depends on who acquires the account interest. It isn’t automatically the parent or guardian:
- If someone other than the beneficiary’s estate acquires the interest, that person includes the amount in income for the year that includes the date of death.
- If the estate acquires it, the amount goes on the beneficiary’s final income tax return.
Nothing in the rules suggests a different result for an auto account that was never claimed. If this comes up, the executor or the family’s advisor should locate the account, get the date-of-death value and account paperwork from the trustee, and coordinate the income and estate reporting with the return preparer.