As high-income Americans enjoy unprecedented stock market gains, Treasury Secretary Scott Bessent noted that 38% of families have no exposure to the markets.
“They don’t share in the upside — our innovation, our capital markets,” Bessent told Yahoo Finance. “One of the goals of the Trump Accounts is to get everybody in.
“Everybody deserves a piece of the action.”
Trump Accounts, which launched officially on July 4, are traditional IRAs available to all Americans under 18. Children are the account owners, and their parents are custodians until age 18, when the money can be withdrawn and used for things like starting a business, paying for school, or making a down payment on a house. They can also be rolled into an IRA for retirement.
“People will be able to keep their gains,” Bessent said.
Read more: Trump Accounts explained: How they work, who qualifies
Contributions to the accounts are capped at $5,000 per year. Children born between 2025 and 2028 are also eligible to receive $1,000 in seed money from the federal government.
The White House made a big push on Monday to promote the accounts, hosting the opening bell of the Nasdaq and NYSE in the Oval Office and welcoming CEOs of several major companies that have pledged millions to the Trump Accounts for low- and middle-income families or through employer match contributions for their own employees.
Michael and Susan Dell are giving $6.25 billion, which will provide $250 to 25 million children aged 10 and under in lower- to middle-income ZIP codes. Micron is matching $1,000 in contributions for children of its workers.
Bessent said more companies and philanthropists are joining the effort. “I’m expecting that we’re going to see some very big announcements.”
Jennifer Schonberger is a veteran financial journalist covering markets, the economy, and investing. At Yahoo Finance she covers the Federal Reserve, Congress, the White House, the Treasury, the SEC, the economy, cryptocurrencies, and the intersection of Washington policy with finance. Follow her on X @Jenniferisms and on Instagram.
Click here for in-depth analysis of the latest stock market news and events moving stock prices
Read the latest financial and business news from Yahoo Finance
