Treasury Auto-Enrolls 60 Million Children in Trump 530A Accounts
Updated
Updated · The New York Times · Oct 1
Treasury Auto-Enrolls 60 Million Children in Trump 530A Accounts
3 articles · Updated · The New York Times · Oct 1
Summary
More than 60 million children were automatically placed into Trump 530A savings accounts on Thursday, covering eligible minors with Social Security numbers who will still be under 18 at year-end.
The Treasury Department acted after voluntary sign-ups lagged: only about 7 million children had enrolled by late July, roughly 10% of those eligible.
Low-income families were especially underrepresented, with a September Commonwealth survey finding just 5% had opened 530A accounts for their children.
The accounts let parents, relatives, employers, charities and governments contribute up to $5,000 a year, with deposits growing tax-deferred in a low-cost stock index fund.
By creating accounts first, officials hope nonprofits and public donors will be more willing to add money, broadening the program's reach beyond families who sign up on their own.
With 60 million children auto-enrolled in new savings accounts, could this unexpected financial gift actually jeopardize a family's existing public benefits?
Millions of kids just got a government-backed retirement account, but what hidden catch awaits parents who try to activate the funds?
The government just opened a tax-deferred account for your child, but who truly profits if the funds remain untouched and unclaimed for decades?