The U.S. Treasury Department has tapped Frank Bisignano to oversee the expansion of Trump Accounts, according to the department. Bisignano already serves as commissioner of the Internal Revenue Service and head of the Social Security Administration, and the new role adds to his responsibilities inside the Trump administration.
Trump Accounts are tax-advantaged savings vehicles created under Republican tax and policy legislation passed last year. Families can open an account for a child under 18 and contribute up to $5,000 a year. The money remains locked until the child turns 18, and withdrawals before age 59½ are generally subject to income taxes and a 10% penalty, with some exceptions such as qualified higher-education expenses.
Early sign-ups and government seed money
The Treasury said the program has already drawn more than 6.5 million family sign-ups. Children born between 2025 and 2028 can receive a one-time $1,000 government contribution, and more than 1.5 million eligible children have enrolled, according to the department.
The administration has made broader access to the accounts a priority. Officials say the goal is to help more families benefit from stock-market growth, after a period in which the S&P 500 has risen about 25% since President Donald Trump’s second inauguration. The Federal Reserve says 58% of U.S. households own stocks, even though most wealth is concentrated among higher-net-worth families.
Source: cnbc.com
