Dell Technologies Donates $6.25 Billion to Seed Trump-Branded Investment Accounts for US Children
Dell Technologies CEO Michael Dell and his wife Susan have donated $250 each to 25 million US children, totaling $6.25 billion, to seed Trump-branded investment accounts. These accounts were authorized by Congress in a tax and spending bill designed to encourage families to save for their children's retirement. The accounts can be opened for any child under 18 and must be invested in a low-cost index fund.
Babies born between 2025 and 2028 will receive a government initial deposit of $1,000. The Dell donation specifically targets children under 10 born before January 1, 2025, in households with median incomes below $150,000. The Dells expect their gift to reach about 80% of US children aged 10 and under.
The accounts will launch in July, with the Treasury Department having published a form to establish them. Contributions of up to $5,000 per child, adjusted for inflation, are allowed, and employers and charities can also contribute.
Funds in these accounts grow tax-free; however, withdrawals are taxed and may incur penalties if taken before age 59.5. At age 18, the accounts convert to traditional retirement accounts. Projected growth estimates suggest that a $1,000 initial deposit could grow to over $5,800 in 18 years at a 10.3% return, while a $250 deposit could grow to about $1,600.
Critics of the program argue that the accounts might primarily benefit higher-income families and lack the flexibility of existing 529 plans. Treasury Secretary Scott Bessent faced criticism for linking the program to Social Security privatization efforts. The Tax Foundation notes that while the program adds complexity to the tax code, it is well-intentioned.
The Dell donation ranks among the largest private gifts directly benefiting Americans. Additionally, Dell Technologies has pledged to contribute to employees' accounts.
