Parents of newborns who register them for Social Security numbers while the babies are still in the hospital will be able to sign up for a Trump account at the same time, vastly increasing the new investment program’s reach.
The Social Security Administration said on Friday that it would introduce a process to enroll newborns in the accounts, which can be opened for children younger than 18 who have a Social Security number. The accounts officially open for contributions on Saturday, and the money in them will be invested in low-cost index funds.
“Social Security numbers are the backbone of Trump accounts, and we will empower parents to enroll their newborns,” said Frank J. Bisignano, the agency’s commissioner, “to take full advantage of this program from the day a child is born.”
The so-called enumeration at birth program enables new parents at hospitals, at birthing centers or using a licensed midwife to request a Social Security number during the birth registration process. About 3.6 million babies are born in the United States annually.
Next week, the agency said, it will update its guidance to hospitals to include information on how to enroll in the accounts, and will assist states in modifying their forms to apply for a Social Security number to include the automatic creation of a Trump account. It wasn’t immediately clear when the new option will be available. Now, parents have to fill out a form or check a box on their tax returns to open an account.
Program experts said the agency had contracts with the states to help administer the enumeration at birth program. Its costs are generally paid with Social Security’s trust funds, which are largely funded with payroll taxes and face financing shortfalls.
It was also not clear who would pay the extra administrative costs to make the changes. Spokespeople for the Social Security Administration and the White House could not immediately be reached.
Individuals, employers and others can deposit money into the accounts, which grow tax-free, like individual retirement accounts. The Treasury Department will make a one-time $1,000 deposit to the accounts for children who were born from Jan. 1, 2025, to Dec. 31, 2028; the children must be citizens and have a valid Social Security number. The tech billionaire Michael Dell and his wife and Micron, the U.S. chip maker, have also agreed to make contributions to some of the accounts.
The accounts, created as part of the tax and spending plan that President Trump signed into law last summer, become I.R.A.s when the children turn 18. At that time, money can be withdrawn for specific purposes like paying for college, buying a home or retiring; otherwise, there is a penalty.
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