See more of our coverage in your search results.
Social Security has added another program to its lineup — but it’s for babies.
The 91-year-old agency — most commonly known for its monthly benefit checks for retirees and those with disabilities — has announced a new initiative.
The new program — called the Enumeration at Birth (EAB) program — will now be adding information about Trump Accounts to Social Security cards issued to newborns.
In addition to the Social Security cards, parents will be given an insert offering instructions for claiming the child’s Trump Account through the app. Trump Accounts are for those born between January 1, 2025, and December 31, 2028, where kids score a one-time $1,000 contribution from the U.S. Department of the Treasury.
“Social Security is providing families with the tools to get started right away on this generational opportunity to build a strong financial foundation for their children’s future,” said Commissioner Frank J. Bisignano in a press release.
“By including this information with Social Security cards issued through the Enumeration at Birth process, we are giving parents the tools to activate their child’s Trump Account and take full advantage of this wealth-building opportunity,” Bisignano added.
To sign your child up for the accounts, parents must follow three steps:
- Visit TrumpAccounts.gov to download the Trump Accounts app and sign up
- Look for a communication from the Department of the Treasury with information about activating the account and receiving the $1,000 contribution, if the child is eligible
- Manage the account and, if desired, make additional contributions subject to applicable limits
Trump Accounts are a tax-advantaged investment account for children. Eligible kids can have one account where parents, guardians or other authorized individuals serve as the responsible party and account custodian.
As of today, 70 million Trump Accounts are up for grabs, and 26 million have already received contributions, according to the administration. When children turn 18, the account turns into a retirement account — as their money will grow with them over decades.
The traditional IRA, tax-advantaged investments are administered by a parent or guardian who can add up to $5,000 per year. No withdrawals are allowed before 18, and withdrawals are subject to income tax.
According to the Treasury Department, each account is invested in the State Street SPDR Portfolio S&P 500 ETF, a low-cost exchange-traded fund that tracks the performance of the S&P 500 Index. The agency has also selected other low-cost index ETFs:
- iShares Core S&P 500 ETF (IVV)
- Vanguard Total Stock Market ETF (VTI)
- State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM)
- iShares Core S&P total U.S. Stock Market ETF (ITOT)
While parents, family and friends may contribute up to $5,000 to the accounts annually after-tax, businesses can also get into the game. Employers can contribute up to $2,500 for their employee or a dependent.