IRS chief Frank Bisignano will lead Trump accounts expansion

The U.S. Treasury Department has named Frank Bisignano, the top official responsible for the expansion of popular Trump accounts, the Treasury Department told CNBC on Wednesday.

The move marks an expansion of the powers of Bisignano, who will continue to serve as Internal Revenue Service director general and Social Security Administration commissioner. Bisignano resigns as CEO of financial technology firm fiserv He will join the Trump administration in 2025.

Trump accounts are a savings vehicle created by tax and policy legislation Republicans passed last year. They debuted on July 4th. A family can set up an account for a child under 18 and contribute $5,000 per year to the tax-deferred account.

Money cannot be withdrawn until the child turns 18. At this point, withdrawals made before age 59½ are generally subject to income taxes and a 10% penalty. There are certain penalty exceptions, such as distributions for higher education expenses.

The Treasury Department says more than 6.5 million families have signed up. Children born between 2025 and 2028 are eligible to receive a one-time pilot contribution of $1,000 from the government. More than 1.5 million eligible children have signed up, the Treasury said.

More children are eligible to receive additional funding from private individuals and organizations that support the creation of accounts.

Expanding access to accounts is a priority for management. The stock market has boomed in recent years; The S&P 500 has gained nearly 25% since President Donald Trump’s second inauguration. Management hopes the accounts will help more families participate in such gains. About 58% of U.S. households invest in the stock market, according to the Federal Reserve, but most of the nation’s wealth is held by the highest net worth households.