The Dells Will Give Millions Of Us Kids Seed Money
A different Michael is trying to make Scott’s Tots somewhat of a reality: In one of the largest-ever donations to American wallets, Michael and Susan Dell committed $6.25 billion yesterday to kiddie investment accounts, dubbed “Trump accounts,” created by this year’s tax bill.
Who qualifies? About 25 million American children age 10 and under, born before this year, who live in areas where the median income is $150,000 or less. Eligible kids will automatically receive $250 in the Trump accounts their parents set up, the Dells said.
This supplements the government’s plan to drop $1,000 into each Trump account opened for American babies born this year through 2028. Dell Technologies will also match that $1,000 for new children of its employees.
What’s a Trump account? An investment account that will be available in July 2026 to grow a child’s nest egg with taxes deferred until withdrawal. Once recipients turn 18, they can spend the money on education, homebuying, or startup costs, or roll it over into an IRA. President Trump previously credited Dell with bringing him the idea.
Zoom out: Though some tax experts aren’t sure Trump accounts are better than existing investment options, seed money is sure to sweeten the deal. Dell told CNBC that he’s in touch with other philanthropists who he’s hopeful will also donate to Trump accounts.—ML
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