A new savings vehicle, dubbed “Trump accounts,” is designed to help the rising generation of American children build wealth into adulthood. Under the multitrillion-dollar tax and spending bill signed by President Donald Trump in July, the federal government will contribute $1,000 to accounts set up for every American baby born in the next few years. The initiative got a boost on Dec. 2 when billionaires Michael and Susan Dell announced a $6.25 billion gift to seed accounts for millions of older children as ...

: A new savings option created under the Working Families Tax Cuts bill is starting to draw attention from parents planning for their children’s future. Known as Trump accounts, the program is being described as an “IRA for children” and comes with a notable incentive: a $1,000 government seed contribution, even before families add a single dollar of their own.Are Trump Accounts Really an “IRA for Children”While contributions to Trump accounts won’t begin until July 4, 2026, interest is already growing, es ...

One of the many provisions of the One Big Beautiful Bill Act (OBBBA) of 2025 was the creation of a federally-backed savings and investment program dubbed “Trump accounts.” The intent behind the accounts is to give children a head-start on investing by providing government seed money. Recently, the Trump accounts have made headlines again thanks to a major private pledge from billionaire philanthropists Michael and Susan Dell, according to CNN. See Next: I Asked ChatGPT How To Build Wealth for the Rest of ...

Add in the initial $1,000 government seed money — or $250 for eligible families receiving the Dell gift — and the compound growth potential is substantial.If the account is left untouched without additional contributions, it could balloon to $2.2 million in assets by the time the beneficiary reaches age 60.The math looks compelling on paper. A family contributing the maximum $5,000 annually with a 6% growth rate could see the account reach roughly $191,000 by the time their child hits 18 , according to the ...

Core Points - The Trump administration has introduced a new savings initiative for children called "Trump accounts," which is part of the One Big Beautiful Bill Act [1] - These accounts are designed to function as long-term investment vehicles specifically for individuals under 18, with funding from federal seed money, private contributions, and potential employer or nonprofit deposits [2][3] Eligibility and Enrollment - Any child under 18 with a valid Social Security number can have a Trump account, established by an authorized adult [5] - The program is set to launch in mid-2026, with contributions starting after July 4, 2026, and parents of newborns from 2025 to 2028 can open accounts using IRS Form 4547, which is yet to be released [6] Funding and Contributions - Individuals can contribute up to $5,000 annually to a Trump account, while employers can contribute up to $2,500 per year [8] - The federal government will make a one-time $1,000 deposit into each eligible child's account [9] Investment Growth - Funds in Trump accounts must be invested in broad U.S. stock index funds, which track the overall performance of the U.S. stock market [12][13] - Treasury estimates suggest that a fully funded account could grow to as much as $1.9 million by age 28, with lower projections still yielding nearly $600,000 [17] Withdrawal Rules - Funds are locked until the child turns 18, with strict limits on withdrawals to promote long-term growth [19][20] - Upon reaching adulthood, the account will function similarly to a traditional IRA, with specific tax treatments and distribution options [21][22]

Core Insights - The White House National Economic Council is promoting "Trump accounts" for newborns, with significant interest from wealthy Americans to contribute additional funds beyond government contributions [1][2][5] Group 1: Trump Accounts Overview - The Trump accounts initiative aims to provide newborns with a financial stake in the U.S. economy, funded by both government and private contributions [5][6] - The program includes a one-time government deposit of $1,000 for every child born between January 1, 2025, and December 31, 2028 [10] Group 2: Contributions and Growth Potential - Families can contribute up to $5,000 annually to the accounts, with the potential for inflation adjustments after 2027 [11] - The Treasury Department estimates that if fully funded, the accounts could grow to as much as $1.9 million by age 28, with lower projections estimating around $600,000 [15][12] Group 3: Philanthropic Engagement - Michael Dell's commitment of $6.2 billion to provide $250 to each child under 10 has sparked interest from other wealthy individuals to contribute similarly [2] - The initiative is framed as a voluntary philanthropic effort to enhance social equity through the profits of America's philanthropists [2]

President Trump’s One Big Beautiful Bill Act ushered in many tax changes, including a new saving and investing vehicle for families known as Trump accounts. As trumpeted in a White House press release in August, Trump accounts are intended to “give the next generation a jumpstart on saving.” In layman’s terms, they function as a type of tax-deferred savings account for those under 18, and they come with a starter package for any U.S. citizen born between Jan. 1, 2025, and Dec. 31, 2028: a $1,000 deposit ...

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]

Core 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]

Core Points - Michael and Susan Dell are donating $6.25 billion to fund the Invest America initiative, also known as the Trump accounts program for children [1][2] - The initiative aims to provide financial literacy and close the wealth gap by seeding $1,000 in investment accounts for children born between 2025 and 2028 [3][5] - The donation will also benefit children under the age of ten, expanding access to the program [4][5] - The funds will be invested in low-cost index funds, allowing children to use the money for education, home purchases, or startup expenses when they reach adulthood [5] - Following the announcement, Dell's stock rose by 4% [6]