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On Tuesday, Michael and Susan Dell made an unprecedented contribution of $6.25 billion, significantly bolstering the newly launched children’s savings initiative, approved earlier this year under the “One Big Beautiful Bill.”
WASHINGTON — The ambitious investment initiative aimed at American youth, known as the “Trump Account” program, received a substantial financial injection from billionaires Michael and Susan Dell on GivingTuesday.
The Dells’ record-setting donation supports the children’s savings project, enacted with the recent legislation, which facilitates the U.S. Treasury Department in depositing $1,000 into special investment accounts. These accounts are designated for American children born between January 1, 2025, and December 28, 2028.
“Our conviction is that by giving each child a vision of a promising future, this initiative will create more than just financial accounts. It will foster hope, opportunities, and prosperity for future generations,” expressed Michael Dell, the visionary behind Dell Technologies, whose fortune is estimated at $148 billion by Forbes.
The Dells’ contribution will also allocate $250 into the investment accounts of 25 million children aged 10 and under, serving as an encouragement for families to activate these accounts and participate in stock market investments.
Trump accounts can receive up to $5,000 each year in contributions from parents, guardians and other individuals. Employers can contribute up to $ 2,500 for an employee or an employee’s dependent under the age of 18, but the contribution counts toward the $5,000 yearly limit, Morningstar says.
How to claim ‘Trump Account’ for kids
Under the new law, “Trump Accounts” are available to any American child under 18 with a Social Security number, and their families can fund the accounts, which must be invested in an index fund that tracks the overall stock market. When the children turn 18, they can withdraw the funds to put toward their education, buy a home or start a business.
For babies born between Jan. 1, 2025, and Dec. 31, 2028, the accounts will start with a $1,000 balance.
Parents can claim the one-time $1,000 contribution by filing an election with the IRS. This applies to children who have a Social Security number, and the $1,000 deposit does not count toward the yearly limit, according to Morningstar.
“Invest America” accounts, the program’s formal name, have limited investment options, allowing them to be invested only in mutual funds or exchange-traded funds such as the S&P 500. Sign-ups for the program will open on July 4, 2026, allowing parents and guardians to open their child’s investment account in just a few steps, Invest America says.
For the first 18 years, the money grows tax-free.
The Dells will put money into the accounts of children 10 and younger who live in ZIP codes with a median family income of $150,000 or less and who won’t get the $1,000 seed money from the Treasury.
The plan is similar to a 529 plan or an education savings account. The child is the owner of the account and is referred to as the beneficiary.
What happens after a child turns 18?
According to Morningstar, when the child turns 18, the account becomes a traditional IRA, following similar guidelines and restrictions.
Once a child turns 18, they can withdraw the money to put toward a down payment for a home, education or to start a small business. If the money is used for other purposes, it’ll be taxed at a higher rate.
When does the program start?
While the “Trump Account” program became law as part of the president’s signature legislation in July, the Dells says the accounts will not launch until July 4, 2026. Michael Dell said they wanted to mark the 250th anniversary of U.S. independence with the pledge.
No contributions can be made until July 4, 2026, according to the official website.
The Associated Press contributed to this report.
