The U.S. Treasury asked major philanthropic donors to contribute to new investment accounts for children Wednesday as part of what Secretary Scott Bessent called a “50 State Challenge” to raise funds for the Trump Accounts program. “The president is calling on our nation’s business leaders and philanthropic organizations to help us make America great again by securing the financial future of America’s children,” Bessent said in an address. The billionaire hedge fund founder Ray Dalio, along with his wif ...

Core Insights - The Trump Account savings accounts represent a federal initiative aimed at building generational wealth through tax-deferred investment vehicles for newborns born between January 1, 2025, and December 31, 2028, with an initial government deposit of $1,000 for each eligible child [1][2] Group 1: Account Structure and Benefits - Modeled after 401(k)s and IRAs, the accounts will track broad stock indexes like the S&P 500, allowing tax-free growth until age 18, when they convert to retirement savings accounts [2] - Families and employers can contribute up to $5,000 annually, promoting early financial literacy and compound returns to help fund education, homes, or startups [2] Group 2: Corporate Involvement - Goldman Sachs CEO David Solomon praised the initiative, emphasizing its potential to connect future generations with the benefits of American companies and markets [3] - Goldman Sachs plans to implement matching programs for employee contributions to Trump Accounts, matching dollar-for-dollar up to $2,500 per year starting in 2026 [6][7] - The investment bank aims to channel approximately $100 million annually based on its global staff of 45,000 and their family sizes [7]

gageskidmore / Flickr Quick Read Dell Technologies (DELL) founder Michael Dell pledged $6.25B to seed Trump Accounts for 25 million lower-income children. Dell’s contribution provides $250 per child born before 2025. Trump Accounts offer tax-deferred growth until age 18 with $1,000 federal seed funding for newborns from 2025 through 2028. Billionaire Mark Cuban endorses the idea of kids saving money early. Will he make a similar contribution as Dell? If you’re thinking about retiring or know someon ...

Welcome back. Good Friday morning everyone. Thanks so much for joining us this morning.I'm Maria Barturumo and it is Friday, December 5th. It is 8:01 on the East Coast. President Trump hinting at his choice for the next chairman of the Federal Reserve in the Oval Office this week.Watch. >> It's a great group. And I guess a potential Fed chair is here too.I don't know who's allowed to say that potential. He's a respected person that I can tell you. Thank you, Kevin.>> White House National Economic Director K ...

Core Viewpoint - The "Trump Accounts" initiative aims to help lower-income Americans build wealth through investment accounts for children, although the effectiveness will depend on the program's mechanics and implementation [1]. Program Details - The program is set to launch on July 4, 2026, with the U.S. Treasury depositing $1,000 into investment accounts for children born between 2025 and 2028 who have a valid Social Security number. The funds will be invested in low-cost index funds that grow tax-deferred, with income taxes due upon withdrawal [2]. - Contributions to a child's account can be made by parents, guardians, employers, or other entities, limited to $5,000 per year, with employer contributions capped at $2,500 per year [3]. Philanthropic Involvement - Entrepreneur Michael Dell and his wife, Susan, pledged $6.25 billion to deposit $250 into the investment accounts of 25 million American children, specifically targeting those in areas with a median family income of $150,000 or less [4]. Economic Impact - The initiative is expected to boost investment in the U.S. economy and educate families about compound interest as they observe their children's savings grow over time. Additional donors are anticipated to contribute to the program [5]. Tax Implications - The Trump Accounts function as custodial retirement accounts, converting to traditional IRAs when the child turns 18. Withdrawals will be subject to IRA-style treatment, including penalties for early or non-qualified use [6][7]. Comparison with Other Savings Mechanisms - 529 plans are highlighted as another savings option for families, primarily for educational expenses, with varying state tax benefits for contributions, although they do not offer federal income tax deductions [8].

Key Takeaways Michael Dell, and his wife Susan Dell, pictured above, plan to donate $6.25 billion to 25 million Trump Accounts. Rick Kern / Getty Images Close Michael Dell, founder and CEO of Dell Technologies (DELL), and his wife, Susan Dell, plan to donate $6.25 billion to fund Trump Accounts for children, according to a statement released Tuesday. The money will finance 25 million accounts and provide $250 of seed funding per account. "We're making a $6.25 billion investment in America's kids through o ...

All children born between 2025 and 2028 will reap a baby shower gift from Congress and President Donald Trump: a $1,000 deposit into a “Trump Account.” Think of "Trump Accounts" as seed money to encourage children and families to save and build wealth for the many expenses of adulthood. “It’s an IRA for kids,” said Evan Morgan, a principal in the tax advisory group at Kaufman Rossin, an accounting and advisory firm, who spoke to USA TODAY in August. Trump Accounts are part of the tax and spending package ...

Core Points - The Dells pledged $6.25 billion to incentivize 25 million American children under 10 to claim new investment accounts created by recent legislation [1][2] - This commitment is believed to be the largest single private donation made to U.S. children, with few charitable commitments exceeding $1 billion in the past 25 years [2] - The investment accounts, referred to as "Trump Accounts," will be managed by private companies and are set to launch on July 4, 2026 [3][5] Investment Account Details - Each qualified child will receive a $250 deposit from the Dells, with the Treasury also contributing $1,000 for children born between January 1, 2025, and December 31, 2028 [5] - Funds in these accounts must be invested in an index fund tracking the overall stock market, and families are encouraged to contribute additional funds [5] - Upon turning 18, children can withdraw the funds for education, home purchases, or starting a business [5] Philanthropic Goals - The Dells aim to inspire families to claim and contribute to these accounts, fostering a culture of saving and investment [6] - There is hope that other companies and philanthropists will also contribute to these accounts, enhancing the overall impact [6] - The initiative is seen as a unique platform to effectively distribute funds to needy children while ensuring that the money can grow with the economy [7]

Michael Dell, Chairman and CEO of Dell Technologies, speaking at the Mobile World Congress 2024 in Barcelona, Spain, on Feb. 27, 2024.Michael and Susan Dell announced Tuesday that they have committed $6.25 billion to fund investment accounts for some 25 million American children. The couple's donation will be the largest ever devoted to American children, according to Invest America, a nonprofit advocacy group partnered with the Dells."It's designed to help families feel supported from the start and encoura ...

The One Big Beautiful Bill Act (OBBBA) created a new tax-deferred account for minors called “Trump Accounts.” According to a report released by the White House’s Council of Economic Advisors, children born between 2025 to 2028 qualify for a free $1,000 seed contribution from the federal government to sweeten the deal. They must be a U.S. citizen or legal resident with a Social Security number (SSN) and have at least one parent with an SSN. Trending Now: 8 Ways Trump’s ‘One Big Beautiful Bill’ Could Offer ...