60 million children got Trump Accounts. Fewer than 1% were claimed in the first week
A week later, according to Bloomberg Law, Helen Morrison, Treasury benefits tax counsel, speaking in her personal capacity at an American Bar Association tax meeting, said roughly 164,000 of the 60 million new accounts had been claimed.
Key points
- Michael and Susan Dell say they have now put $250 into the accounts of almost 25 million children.
- If America does no better than Britain, where more than a fifth of matured accounts sit unclaimed, millions of young adults will start out without the stake they were given.
- Children born between 2002 and early 2011 got a fund seeded with at least £250; the state opened one when parents didn’t.
1 the Treasury said it had finished automatically creating investment accounts for more than 60 million children; with those opened earlier, the total is about 70 million.
Additional details
- America has just opened tens of millions of children’s accounts that will need the same kind of matching.
- An unclaimed account that received Dell’s $250 holds that deposit; one that got neither the federal seed nor Dell money is an empty shell opened automatically.
- A custodian holding millions of tiny, unclaimed accounts carries the servicing cost and regulatory risk without the client relationship.
- These are federally created IRAs for minors, and state unclaimed-property clocks typically don’t start until an account is payable or distributable, often not before adulthood, so the money probably stays invested.
- Under the Treasury’s rules, a parent has to claim the account in an app, verifying identity and relationship, before the $1,000 federal seed arrives or relatives and employers can contribute.
How this summary was made: extractive summary — built from the sources' own reporting. It is drawn only from the reporting of the sources listed below — read the originals for full detail. How we summarize →
Advertisement
Every article behind this summary — 1 article from 1 outlet
Get stories like this in your inbox.
Subscribe — it's freeOne free email at 6am — your topics, deduplicated, five minutes. No account, no paywall.