Who qualifies for the ‘Trump accounts’ for kids? Michael and Susan Dell just donated $6.25 billion as seed money.

Core Points - Tech billionaire Michael Dell and his wife, Susan, have pledged $6.25 billion to establish tax-advantaged investment accounts for children, potentially benefiting 25 million children aged 10 and under [2][3][4] - The pledge translates to $250 per account for the targeted children, separate from the $1,000 contribution from the U.S. government for children born between January 1, 2025, and the end of 2028 [3][4] - The initiative aims to provide financial support for older children who will not receive the government contribution, helping families manage rising costs associated with child-rearing [4][5] Investment Vehicle Details - The accounts, referred to as "Trump accounts," were established as part of a recent tax bill, with a dedicated website, Trumpaccounts.gov, launched for account setup [2][7] - Parents can create these accounts online or via a new tax form, with expectations of contributions from major companies in the future [7] - Funds in the accounts will not be accessible until the child turns 18, with an initial investment of $1,000 projected to grow to approximately $3,500 over 18 years at a 7% annual return [8] Tax Implications - Withdrawals from the accounts will be subject to taxation, making them less favorable compared to other savings options like 529 plans [8]