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3d ago

Treasury Forecasts Million-Dollar Trump Accounts, Bessent Calls Them Social Security 'Backdoor'

Finalized Treasury rules define contribution caps and investment requirements with employers such as Charter Communications pledging deposit matches.

President Donald Trump, right, shakes hands with Treasury Secretary Scott Bessent, left, as Sen. Dave McCormick, R-Pa., center, looks on at the "Inaugural Pennsylvania Energy and Innovation Event" at Carnegie Mellon University, Tuesday, July 15, 2025, in Pittsburgh.
Treasury Secretary Scott Bessent attends a meeting in the Oval Office at the White House in Washington, DC, on July 22.

Overview

  • Treasury projects that Trump Accounts could reach $1.9 million by age 28 if fully funded and $13,800 in 18 years with only the $1,000 seed investment.
  • Charter Communications has agreed to match the federal $1,000 deposit for employees’ children, effectively doubling the initial account balance.
  • IRS guidance under Internal Revenue Code §530A caps family contributions at $5,000 annually and tax-free employer contributions at $2,500 per child, requiring mandatory investment in low-cost U.S. stock index funds.
  • Treasury Secretary Scott Bessent described the initiative as “a backdoor” to privatizing Social Security, prompting criticism from Democratic lawmakers.
  • Trump Accounts will open in July 2026 for U.S. children born between 2025 and 2028, with funds locked until age 18 and qualified withdrawals permitted for education, first-home purchases or retirement.