Trump accounts overpromise, and will probably be the excuse Republicans will use to terminate Social Security for the rising generation of children.
With the "Big Beautiful Bill," congress created the Trump account, which makes a $1000 deposit for all new citizen children born. This is held in the Trump account, and parents and employers can add up to $2500 per year until the child reaches age 18. The White House issued a press release tells people that they can have over a million dollars in the account by age 28 if maximum contributions are made and if the market continues to go gangbusters, etc...However, this almost certainly will not happen.
I am not against new options for tax free or tax deferred savings, but context matters.
I was recently at a town hall with one of our Republican US Senators, and he told us that he would leave Social Security for us older people, but would terminate Social Security for the younger generations. Other Republican politicians have said the same kinds of things.
I believe the goal of these accounts is to terminate social security. They will assume that parents can afford the maximum contributions, or employers will pay them, or the children will grow up and make maximum contributions, etc...When in fact few people can afford this, and employers will rarely do it. The people who depend on Social Security the most cannot afford to contribute any thousands of dollars a year to these accounts.
https://www.whitehouse.gov/research/2025/08/trump-accounts-give-the-next-generation-a-jump-start-on-saving/
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