Trump accounts are now automatic: what does it mean for Americans abroad?

From October 1, 2026, the US government opens a “Trump account” for almost every American child. Parents no longer have to sign up first. Children who live outside the United States are included too, as long as they have a US Social Security number.

That sounds simple, but it is not the full story. The $1,000 from the government does not come automatically. And for families abroad, several important questions have no answer yet. Below we explain what we know, and what we do not know.

These are temporary rules. They can still change after public comments.

What is a Trump account?

A Trump account is a new kind of US savings and investment account for children under 18. It was created by the 2025 US tax law. In legal terms, it is a type of individual retirement account (IRA).

The basics:

• The money is invested in low-cost funds that follow a broad index of mostly US companies.
• The money is locked in. In general, nothing can be taken out before the year the child turns 18.
• Family and others can add up to $5,000 per year. An employer can add up to $2,500 per year, which counts toward that $5,000.
• Children born in 2025, 2026, 2027 or 2028 can get a one-time $1,000 from the US government.
• Charities and governments can also give money to large groups of children at once.

See our publication on Trump Accounts for more information

What changed?

Until now, a parent or guardian had to ask for the account, usually with IRS Form 4547. In March 2026, the IRS said that opening accounts automatically was not possible.

On September 30, 2026, the US Treasury and the IRS changed course. Under new temporary rules, the Treasury opens an “auto account” for every eligible child who does not have a Trump account yet. The first round was planned for on or about October 1, 2026. More rounds will follow for children who become eligible later.

The Treasury expects this to give more than 60 million extra children an account in 2026.

Does this apply if your child lives abroad?

In principle, yes. The rules set only two conditions for an account:

1. The child does not turn 18 before the end of the year in which the account is opened.
2. The child already has a US Social Security number (SSN).

The rules say nothing about where the child lives. A US address is not a condition.

The SSN is the key point. A child without an SSN does not get an account. Many children born abroad to an American parent have never applied for one. For those children, the order is: first record US citizenship (usually with a Consular Report of Birth Abroad, CRBA), then apply for an SSN. Only then can a Trump account follow.

Imagine a family in Amsterdam. Their daughter was born in 2026. One parent is American, but the child has never been registered as a US citizen and has no Social Security number. In that case there is no automatic account yet. First the family has to record the child’s US citizenship and apply for an SSN. Only then can a Trump account follow, and only then can they ask for the $1,000 with Form 4547.

The $1,000 is not automatic

Getting an account automatically does not mean getting the $1,000 automatically. The Treasury cannot make that choice for you. A parent or guardian still has to ask for it.

To get the $1,000, the child must:

• be born in 2025, 2026, 2027 or 2028,
• be a US citizen,
• have a valid SSN, and
• be the “qualifying child” of the person who asks. This is usually a parent who can list the child as a dependent on a US tax return.

You ask for the $1,000 with IRS Form 4547. The rules do not require the child to live in the United States.

You still have to claim the account

An auto account is opened without you. To take control of it, someone has to “claim” it.

• Who can claim: a guardian or legal custodian of the child, or the child once he or she is an adult.
• How: through an app or web page from the Treasury.
• What you need: you must prove who you are and show that you have legal authority over the child’s finances. This asks for more information than Form 4547 does.

Until the account is claimed, you cannot add your own money, and an employer cannot add money either. An unclaimed account can only receive the $1,000 (if you asked for it) and group gifts from charities or governments.

What is not clear yet for Americans abroad

The new rules do not mention families abroad at all. That leaves these open questions:

• Will the Treasury find your child? The Treasury opens accounts based on “information available” to it. The rules do not say which information that is. We do not know if a child abroad who has never appeared on a US tax return will be picked up.
• Can you claim from abroad? We do not know if the app and the identity check work with a foreign address, a foreign phone number, or custody papers from another country.
• Will your child miss out on donor gifts? Donors can limit a gift to children who live in certain US states or areas. The $6.25 billion Dell gift, for example, is for children in certain US ZIP codes. A child abroad has no US ZIP code. Our reading is that these children are left out of such gifts, but the rules do not say so directly.
• Can you say no? There is no opt-out right now. The IRS is still asking the public whether a child should be able to refuse an auto account. This matters for families who do not want a US financial account.
• How will your country of residence tax the account? Growth in the account is not taxed in the US until money comes out. Your country of residence may see it differently and tax it sooner. It is also not clear how tax treaties apply to this new type of account.
• What will you have to report? The reporting rules for these accounts will come in later guidance.

What does this mean for you?

1. Check if your child has an SSN. Without one, there is no account and no $1,000.
2. Child born in 2025–2028? Ask for the $1,000. It will not arrive by itself. You need Form 4547.
3. Check the local tax rules before you add your own money. Ask a tax adviser how your country of residence treats the account.

What happens next?

Several of the open questions above should be answered in later guidance. The temporary rules can still change after public comments, which are due on November 29, 2026. We will update this article when there is news.

Do you have questions about your own situation? Contact Americans Overseas. We are happy to help.

Get informed with Americans Overseas

If your child was born abroad and you are unsure about the SSN, the $1,000 or the claiming process, Americans Overseas can connect you, free of charge and without obligation, with a US tax professional experienced in helping Americans abroad.

Contact us for more information

Sources

• Federal Register: T.D. 10056, temporary regulations on Trump accounts
• Journal of Accountancy: IRS changes course to allow automatic Trump account enrollment
• Thomson Reuters: IRS adopts Trump account auto enrollment, reproposes rules
• IRS: proposed regulations for the $1,000 pilot program contribution
• Taxes for Expats: Trump Accounts for US expats
• Jouurnal of Accountancy

This article provides general information and should not be considered tax, legal or financial advice. Your situation depends on your personal circumstances.