Comment from Treacy, Thomas

Thank you for the opportunity to submit a comment on the Notice of Proposed Rulemaking for Trump Accounts (530A). Secretary Bessent has indicated that financial literacy is an essential component of Trump Accounts. With that goal in mind, the administration should consider looking to the monetary incentives offered through wellness programs within Health Savings Accounts as a model for implementing financial wellness initiatives within Trump Accounts. Treasury could consider using a portion of the ten basis points that may be charged within a Trump Account to build a dedicated fund used to monetarily incentivize account owners to complete financial wellness initiatives. A built-in financial wellness program could ensure that more Americans learn concepts such as compound interest, while also gaining a better understanding of how market participation can allow them to share in the prosperity of the world’s most successful economy. The precise scope of a financial wellness program funded through basis points may require extensive discussion and potentially congressional buy-in. However, as the administration builds out the structure of Trump Accounts, Treasury should consider using the $1,000 seed pilot as the foundation for an initial financial wellness program. Done correctly, the initial $1,000 would not only incentivize establishment of the Trump Account, but the basis points charged over 18 years of investment growth could also be used during the account owner’s teenage years to rebate those fees to account owners who complete financial wellness courses/challenges. A newborn receiving the $1,000 Trump Account seed contribution would have approximately $4,000 to $4,200 by age 18, assuming an 8% average annual return and no additional contributions. By charging basis points and collecting the fees within a financial wellness incentive fund from birth through age 14, account owners would likely have enough funds from the $1,000 seed contribution alone to create meaningful incentives for teenagers to log into their Trump Accounts, complete annual financial wellness courses/challenges and learn practical money skills. Treasury may also want to look to states and schools as potential partners in this effort. State partners and schools could be key facilitators of student engagement with Trump Accounts. Additionally, a partnership between Trump Accounts and a monetary financial wellness incentive program could help state school systems meet growing legislative demands for more robust financial literacy. Trump Accounts, coupled with a well-designed financial wellness program, could provide the Trump Administration with a golden opportunity to create a stronger culture of lifelong saving, expand market participation and help narrow the wealth gap in America.