Dell Technologies(US:DELL) CNBC·2025-12-02 17:48Core Insights - Tech CEO Michael Dell and his wife Susan pledged $6.25 billion to Trump accounts, a tax-advantaged savings account for children, expanding access to seed money for children too old for the $1,000 grants from the Department of the Treasury [2][3] Group 1: Trump Accounts Overview - Trump accounts allow anyone to open an account for a child aged 18 or younger, with a one-time $1,000 deposit for babies born from 2025 to 2028, with no income requirements [4] - The initiative aims to benefit approximately 25 million American children born before January 1, 2025, who are 10 or under, potentially receiving a $250 grant each [3][5] - Similar to a 529 college savings plan, Trump accounts encourage early savings with potential contributions from employers and nonprofit organizations [6] Group 2: Funding and Contributions - Starting July 4, 2026, parents can contribute up to $5,000 annually in after-tax dollars until the child turns 18 [10] - Dell previously committed to matching government seed money for his employees' children during a White House event [7] Group 3: Account Management and Withdrawals - Trump account balances will be invested in low-cost index funds, although there are concerns about limitations on investment options [8][9] - Withdrawals are not allowed until the beneficiary turns 18, at which point funds can be used for education, job training, home purchases, or small business capital [12] Group 4: Tax Implications - Trump accounts will function similarly to IRAs, with tax-deferred earnings and partially taxable distributions, though further clarification on tax treatment is needed [13] Group 5: Impact on Low-Income Families - Experts suggest the one-time $250 deposit may not significantly benefit lower-income families, emphasizing the need for more substantial contributions [15] - The success of the program for low- to moderate-income households may depend on automatic enrollment and public education efforts [16][17]