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4w ago

Treasury Secretary Bessent Calls Child Savings Accounts a Backdoor to Privatizing Social Security

His remarks at a Breitbart forum intensified criticism over IRA-style penalties that opponents say undermine Social Security’s public guarantees.

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.
Baby Accounts Could Create Millionaire Retirees

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.