Overview
- At a Breitbart event on July 30, Treasury Secretary Scott Bessent characterized the Trump Accounts as a backdoor to privatizing Social Security.
- The Trump Accounts program under the Big Beautiful Bill deposits $1,000 for children born from 2025 to 2028 and allows up to $5,000 in annual contributions until age 18.
- Once beneficiaries turn 18, the accounts convert to IRA-style plans, exposing withdrawals before age 59½ to tax penalties.
- Democrats have seized on Bessent’s comment as evidence of a renewed GOP push to shift Social Security benefits into private savings vehicles.
- The administration says these accounts foster personal wealth building for young families, even as critics warn they shift a core entitlement into private savings subject to IRA rules.