U.S. Treasury Secretary Scott Bessent visited Westlake Village on May 29 to promote the upcoming launch of Trump Accounts, a tax-free investment account for U.S. citizens under the age of 18.
In a 20-minute speaking engagement at Rustico Restaurant moderated by actor and Trump supporter Kelsey Grammer, Bessent told an audience of local community members and business leaders about how the initiative will foster both financial literacy and financial security for future generations.
“This is the most meaningful benefit for young people from the government since the GI Bill,” Bessent said of Trump Accounts, which was created under the Working Families and Tax Cuts Act.
The federal government will deposit $1,000 into the accounts of children born from 2025 through 2028, Bessent said.
Though additional contributions are not required, parents can contribute up to $5,000 each year, and employers can contribute up to $2,500 each year.
The accounts are set up for the money to be invested in low cost U.S. mutual funds and exchange-traded funds, including those that track the S&P 500, officials said.If no contributions are made beyond the initial $1,000, the account can grow to $5,800by age 18, and if maximum contributions are made, the account can grow to $303,800 by age 18, assuming average returns, according to the White House’s Council of Economic Advisers.
The account’s value, however, could also decrease based on market performance.
Though families cannot choose which individual stocks to invest in, the accompanying mobile app provides children with a hands-on education by showing them what stocks they own and how they are performing, Trump officials said.
Bessent said 38% of Americans have no exposure to the equity market and hopes the accounts address what he calls the “financial services desert.” Six million children have already been enrolled by their families.
“Our goal is to get everyone involved in the market,” he said.
Children can withdraw funds from their accounts once they turn 18 and spend the money on certain expenses — such as paying for college tuition, buying their first home or starting a business — without penalties, according to the administration.
Moorpark residents Jackson and Kayla Grasz attended the event with their 18-month-old son, William. They said in an interview that these accounts could be an easy and accessible way to teach their son about finances and that they believe the account will set him up for success.
“With the rising cost of living, it’s especially helpful that we’re getting seed funding in the account,” Jackson Grasz said of the federal government’s $1,000 contribution. “That’s a huge burden off our shoulders as young parents wanting to invest in his future, so we’re just very thankful.”
Several elected officials attended the event, including U.S. Sen. Roger Marshall, R-Kansas, U.S. Rep. French Hill, R-Arkansas and U.S. Rep. Vince Fong, R-Bakersfield.
“You want your children to have more opportunities than yourself, and so this is the way to do it,” Fong told the audience, adding that he has already enrolled his son.
The Trump administration hopes the initiative will benefit small businesses by providing them with a new benefit to attract and retain employees.
Several high-profile investors, including Michael Dell, have made donations to fund these children’s accounts, and several corporations, including JPMorgan Chase, have announced employee match programs, according to the administration.
Families can sign up by visiting trumpaccounts.gov and completing the IRS form 4547. The program will launch with a mobile app July 4.
In addition to the Westlake Village event, Bessent spoke about economic policy at a Ronald Reagan Presidential Library event in Simi Valley.
Makena Huey is an investigative and watchdog reporter for the Ventura County Star. Reach her at makena.huey@vcstar.com. This story was made possible by a grant from the Ventura County Community Foundation’s Fund to Support Local Journalism.
This article originally appeared on Ventura County Star: Scott Bessent promotes tax-free accounts for kids in Westlake Village
Reporting by Makena Huey, Ventura County Star / Ventura County Star
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