Dell Family's $6.25 Billion Gift Launches Children's Savings Accounts on July 4, 2026
Dell family's $6.25 billion gift funds tax-advantaged savings accounts for 25 million eligible U.S. children, available July 4, 2026, fostering financial security.
Overview
Michael and Susan Dell have committed a historic $6.25 billion, the largest private gift to U.S. children, to significantly expand the federal 'Trump Accounts' savings program.
This donation will fund 25 million additional tax-advantaged savings accounts for children under 18 with Social Security numbers, becoming available on July 4, 2026.
Children born between 2025-2028 will receive an initial $1,000, while those under 10 (including pre-2025 births) will get $250 to kickstart their long-term savings.
These tax-deferred investment accounts, primarily targeting low-income areas, aim to encourage long-term saving for education and retirement through simple, secure investments.
Parents and relatives can contribute up to $5,000 annually until the child turns 18; funds remain untouched until then, potentially accumulating a seven-figure balance.
Analysis
Center-leaning sources cover this story neutrally, presenting a comprehensive overview of the "Trump Accounts" and the Dells' contribution. They detail the program's mechanics and stated benefits, while also incorporating diverse expert opinions, including criticisms regarding cost, complexity, and comparison to existing savings options. This balanced approach informs readers.
Sources (24)
Center (8)
FAQ
Children born between January 1, 2025, and December 31, 2028, who are U.S. citizens and have a Social Security number, are eligible for a Trump Account and the $1,000 government gift. Children under 18 (including those born before 2025) are eligible for the Dell family-funded accounts, with those under 10 receiving a $250 gift.
Up to $5,000 per year can be contributed to a Trump Account by parents, relatives, friends, employers, and nonprofits until the child turns 18. Employer contributions are capped at $2,500 per year and count toward the $5,000 limit.
When the child turns 18, the Trump Account must be converted into an IRA, and standard IRA withdrawal rules apply. The funds are intended to support long-term savings for education or retirement.
Yes, the money must be invested in eligible vehicles such as mutual funds or ETFs that track a qualified index, do not use leverage, and have annual fees under 0.1% of the balance.
The Dell family's gift funds 25 million additional tax-advantaged savings accounts for children under 18, expanding access to those in low-income areas and providing a $250 gift to children under 10, further promoting long-term financial security.
History
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