Scott Bessent Launches Trump Accounts Website: A New Way to Save for Children

Scott Bessent Unveils Trump Accounts

Treasury Secretary Scott Bessent announced the launch of the Trump Accounts program on Wednesday, introducing a new website to facilitate the initiative.

Details of the Trump Accounts

The Trump Accounts serve as a tax-deferred investment vehicle intended for American children. According to Bessent, a $1,000 deposit made when a child is born could potentially grow to over $600,000 by retirement age, assuming historical growth rates persist. Families who contribute $5,000 each year might see their investment exceed $1 million.

• To enroll, parents can use the new IRS Form 4547 during tax filings.
• The account will be activated by a financial institution that receives the deposited funds.
• Investments can be made in authorized vehicles such as mutual funds or ETFs that track the S&P 500 or similar indices.
• Annual management fees for these funds are capped at 0.1%.

Eligibility and Funding

Children born between January 1, 2025, and December 31, 2028, who are U.S. citizens, will qualify for the initial $1,000 government contribution. Additionally, minors with Social Security numbers can receive up to $5,000 annually from parents or guardians.

Support from Ray Dalio

Billionaire hedge fund manager Ray Dalio, founder of Bridgewater Associates, is partnering with this initiative by contributing $75 million. This donation is part of a nationwide effort encouraging businesses and philanthropic organizations to contribute across all states.